Large cap companies, with a market capitalisation of $10 billion or more, have typically been around for a long time.
Mid sized companies will have a market capitalisation between $2 and $10 billion.
Small companies, with market capitalisations between $300 million and $2 billion, are considered riskier investments.
What are companies with market capitalisations below $300 million then like most of the companies within the CryptoCurrency space?
You may have noticed that many of the compnanies have market capitalisations well below $100 million US dollars, often ranging anywhere from $10 million to $50 million.
In the simplest terms, a market cap helps you figure out the present value of a given Cryptocurrency, and possibly help you predict its potential future price.
And here is how it's done.
Particular Token Marketcap / Circulating Token Supply = present token value.
If you can evaluate the token releasing company and it's potential for future growth, and possible profit predictions, you should be able to make tentative future predictions for the value of the token.
It's an interesting time in the investment world, which even an amateur investor can spot.
Marketcap is the main thing to look at in Crypto. The number of Noobs that look at the cheap coins($0.0001) and think they will go up to $100.
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Right. It's a simple tool, yet many seem to not have a good grip on it, thus such ridiculous guesses.
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