Hello to all steemians over the world, it is time once more to engage in another homework task. This time I am writing on Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.

Types of Crypto Assets Capital.

Crypto assets are the type of cryptos that we would like to keep or have. The major thing being considered in any investment is the risk involved in embarking in it and the return on investment based on available information. There are three types of crypto assets capital.

They are

Large Capital crypto assets

Mid Capital crypto assets

Small capital crypto assets.

Let us now explain each one of them.

Large capital crypto Assets.

These are cryptos of companies, that are safe, paying dividends with a market capitalisation of $10 billion dollar or more. These type of cryptos or assets have low volatility during tough and rough markets as investors rush to quality and more stable coins thus becoming risk averse.
Some characteristics of large capital assets are

1. The companies owning them are very transparent, making for easy analysis by investors since there information are easy to find.
2. These assets are market leaders, providing innovative solutions that add value to consumers.
3. They move with the market economy because of their size.

The profits on these companies might not be much but it is steady and the investment is safe. There is also an element of risk in such assets, but because, we cannot invest much in them, it becomes less volatile to us. Thus it is not possible to lose all our investment in large capital assets.

Reference

Mid capital assets

These are assets of companies having a market capitalization of $1 to $10 billion.

Mid capitalization assets are close to developmental stage, which might offer greater stability rather than returns. Assets within these level has a high possibility of growing their profitability, productivity and market share. Such companies can become very successfull during market expansion or bullish stance, which will in turn increase their returns.
The risk in these type of assets is comparatively moderate, they offer less stability during a bearish market. Such assets are well known to the investors and are easily purchased and sold by them.
There is need to becareful and watch those assets, since you can make huge profit from them quickly and can also lose your investment very fast.

Small capital Assets

These are assets that fall below the $1 billion list. They come as they go, since there is nothing innovative about them. Price increases due to pump in the assets and thereafter goes down or remain flat for a long period of time. These type of assets required small capital, thus the yields can be very high but needs to be held for some long period of time.

Your view, Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages. (Explain only 1)

In my own view, i would say that Mid capital asset can be more profitable.

Advantages

Most mid capital assets have been proved to out perform large capital assets. Mid cap assets are lower in risk and volatility compared to small cap asset, but have higher growth potential compared to large cap assets. Since much attention are not paid to them, it gives wise investors huge opportunities to grow their investment quickly. Also mid cap assets or companies knows the business terrain more than the small capital assets or companies, therefore can avoid unnecessary mistakes that will take them down. Mid capital assets require lower funds compared to large capital assets

Disadvantages

These types of assets return on investment is small compared to small capital assets. During bearish markets, the price can plunge deeper, putting the funds of investors at risk of being lost or seriously depleted. Mid capital assets suffer from equity crisis due to their small capital base

Reference

Risk Capital In Penny Cryptocucurrency

What is a penny cryptocurrency? These are assets that are very cheap in price and sometimes undervalued. So it is very easy to buy them in large quantities with a small amount of money.

Risk Capital. These are the capital or money which if we spend them, it would not affect our finances in any way, even if it gets lost.

So we can invest risk capital in penny stocks and forget them, while waiting for geometric increase in price of these stock.
Even though the risk capital is small, there is need to conduct research on the asset, to determine the true value of the asset and its uture.
So if I want to invest in penny assets, I would use a capital that will not affect my finances in any way.

Importance Of Watchlist.

What is a watchlist

This is a record an investor keeps to keep track of the prices and other records of his favorite assets. Why is it important then? This is very important because, we have over 6000 crypto assets, and to be monitoring all of them is not an easy task, as such, we need to have a watchlist. In this watchlist, we will keep the assets that are our favorites, those that we have already invested in and those we want to invest in, in the near future. The assets will comprise of Large capital assets, mid capital assets, small capital assets and some penny stocks, to have a complete watchlist..

When you have the watchlist of the assets you have interest in, it is then easier to watch and know when to have a good buy and when to sell off to make your profit.

This is a good lecture, I will start preparing my own watchlist, and see what I can come up with.

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