Hello everyone, so today I invite you all to read my lesson 4 homework which is given by the #steemitprofessor @stream4u.
Now I will continue with my Homework:
Large Capital:
So what I have learned is that a company or an asset which has a value of more than $10 billion of capitalization is Large capital.
They are large companies with huge investment and it has less risk than others but the return is also low in this. A normal person can't invest in that because these huge assets require a huge investment to make. This also takes time to see the returns on the investments which can be for the long period like 1 - 2 years and it also can be more than that.
Mid Capital:
Then comes the Mid capital in which the companies or assets are of $1 -10 billion of capitalization. It has more risk than Large capital but many investors try to invest in that because it is more affordable for the people and it also can bring high profits to the investors.
Small Capital:
And then finally comes the small capital, as it is obvious with its name that it has small capital. It is $1 billion or less of capitalization. It has a huge risk with regards to mid and large capital, as the small capitals are mostly new and don't have enough investment so some of the cryptos also shut down after some time but some of the cryptos can also bring huge profits to the investors, so if you are going to invest in it you have to keep an eye in this.
All three capitals will affect the Investments in their own way, as all three have risk large capital has low while the small capital has high and the people who have huge amount will opt the large capital while normal investors will go for Mid capital and mostly the new investors will go for the small capital as it doesn't require much money to invest in it.
I don't know about others but in my opinion, mid capital will be a good option to gain more profits as it doesn't have high risks like small capital and also have high returns than large capital. So in my opinion Mid capital will be the best asset capital to gain profits.
Advantages of Mid Capital:
- It has less risk.
- It has a high potential of earning profits.
- It requires less investment to invest in a market that is viable.
- The mid capital is less resilient
Disadvantages Of Mid Capital:
- It has fewer returns as compared to small capital
- If the market crashes it causes more damage in mid-capital and makes a lot of loss for the investors.
So the Risk Capital is like which does not affect the investment in total whether you can profit or loss. As there are always a risk where the capital is involved. So the risk capital is the amount which was used to buy normal things which donot have any return so we take that money and invest it and then forget about it as it can not be recover.
And a penny cryptocurrency are the one which have less than a dollar value, so the people who doesn't have much amount ususally invest in that. In this there are some possibilities in that the value of the cypto will go up and will give you a huge profit but it can also can be a waste.
So we just pick our risk capital and invest in penny cryptocurrency and then forget about it, then if you get lucky maybe in some mpnths or years you can gain a high profit.
The upper image is the normal list of cryptocurrencies.
So the role of the watchlist is that to make things simple for us, as if we want to see some specific crypto and want to see their prices so for that we can make watchlist, it help us in seeing want we want to see, otherwise we have to find those cytpocurriencies which we want to see everytime and that will be soo hectic.
So below I am showing the watch list I am just making, as I have never invest in crypto so I didn't also have made any watchlist, so I hope it will be good hehe. So I am to make it on coingecko.com.
Conclusion:
So now I want to conclude my Homework, it was a nice topic though and I learned a lot. And I got to know about the capital and it opened my mind in a way that if in future I invest than what will be my strategy and in which market I will go.
@stream4u, this is the entry to homework. @steemitblog, thanks once again for this initiative, I am learning a lot from this and feeling great as now I can say that I have some knowledge about these things.
cc: @steemcurator01
cc: @steemcurator02
cc: @steemitblog
Regards,
@maazmoid123
Hi @maazmoid123
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 6.
Your Homework task 6 verification has been done by @Stream4u.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
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Oh okay, I will try to make it more viable next time
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