Steemit Crypto Academy Lectures week-6 By Professor @stream4u || Homework Done by @xkool24 ||

in hive-108451 •  4 years ago 

Hi friends, it my pleasure to participate in week 6 Lectures and Homework by professor @stream4u

HomeWork Task 6
Make a Homework Task 6 Post on the below Topics which you can discuss according to your views on it.

Differences in Large Capital - Mid Capital - Small Capital and how they will affect to the Investment?

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LARGE CAPITAL

Large capital Cryptocurrencies are predominantly large market capital which offers a more better safe investment in its trade. Categories of company seen in this type of market have a capitalization of over $10billion worth of cap.

Large Cap markets do usually have a mainstay in the event of having long time trades due to the volume of liquidity in exchanges. It's is quite rare though not impossible to loose all in this market platform
The large Cap generally have less exposure to risk. Let's all bear in mind that, investment done on the large Cap do not witness major growth but lesser risky investment (More safe) with low market volatility. Gains from this investment are slightly conservative.

MID CAPITAL

These are smaller market capital compared to the large capital markets with tendencies of having more risk than its large capital counterparts. Companies within this category are seen to have less than $10billion but more than $1billiin market capitalization.

This type of Market are mix breed of the large and small Capital market. Due to the intermediary risk involved, some of its coins still have the potentials of having a long time survival while others have gone down over the years. It has mix of uncertain ways to lose funds in this market, hence the need to research before putting in any investment.

More tactical, if one is heavy on coins and low in the mid Caps, there's all tendencies there would be profits but and eye should continually Benin the investment. This is to say, they have more growth potential unlike what is obtainable in the large-caps, which is also the main reasons why they carry more risks. There is also high liquidity inflow since there's capacity to increase capitalization potentials.

SMALL CAPITAL*

These are the smallest market capitalization in this category but now with the highest risk rate compared to try LARGE and MID capitals. Thalia is basically due to the the chances of market volatility which may like bring about failure are much higher.

Small Capital lack the boost of the Exchanges they are traded due to minimal liquidity and possibility of them going out of rotation.
In this category, they can barely launch new products and when done easily fizzles out in the Exchanges coupled with zero pulling of liquidity by investors. This kind of market are mostly for gambling and moonshots, they barely have a duration or longtime span.

Moreso, what we mostly have in the small Caps are a traders who has come to cash in and out of the system though with high risk but continually starved the system of liquidity. The continuous rotation of low capitals and the frequency of in and out trades, makes it a poor investment platform and a more risky one which has since pose as a big trap for newcomers.

So, do you know why we still see influx of people in this market?, There's this potential to double up assets in the possible shortest time with ROI recovered unlike what the large and mid Capital could offer in its short run.

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

Answer: Small Market

For me, I will want to go for SMALL CAPITAL owning to its capacity to double up profits in the shortest possible time, though risky. Making profits is the sole aim of every investor in the shortest possible time without necessarily having to wait for decades to make conservative profits.

Advantages of Small Capital

  • Have we wondered why despite the assumed risk purported to be high on small capital markets, investors still go in and out... This is because of the tremendous amount of profits made within a short period. Investors have the capacity to triple Capitals invested within a twinkle of an eye.
  • It does not require much liquidity to invest in such trade, hence making it more easier for investors to leverage on this.

Disadvantages of Small Capital

  • Insufficient liquidity in Exchanges that gears this type of market due to constant outflux of assets.
  • Most times there are zero pulling down of assets which renders and threatens the lifespan of a assets die to uncertainties from investors or high market volatility.

Thoughts on Risk Capital and Penny Cryptocurrency.

Risk Capital in my own thoughts are veritable means of longtime investment. This is a capital I put together from my supposed frivolous spending that doesn't not affect my normal and usual savings. To my understanding, I think it should either be called social or loose capital since it I have no risk to take after investment.omeies or assets used for this investment do not directly affect my personal finances. In a case when there is a bull or beer run on assets invested, gains or losses as the case maybe are not tied to any expected.

Penny Cryptocurrency are asset with a very low market value priced between $0.0004 or $0.02. They are seen to be very low and undervalued assets. Using the Risk Capital and buying up more volume of this kind of assets could also be life changing by making conservative and unimagineable profits.

What is the Role of Watchlist? Best way to set Watchlist. Additionally, For Example, show your watchlist if you have configured it and give a short description of it

ROLE
The role of watchlist in Cryptocurrency has proven to be more essential in the performance tracing and tracking of cryptocurrencies. It allows one to build a list and set aside favourite icons to monitor for improved performance. Watchlist allows you automatically and in a glance to stay informed about trends and other important crypto news.

BEST WAY TO SET WATCHLIST
A basic strategy not to stay aloof just because you're creating a watchlist for yourself is by selecting atleast a certain number of assets from the different categories and layers of market Caps (Which include the Large Capital, Mid Capital and Small Capital markets)

Screenshot_20210316-091403.png
(My watchlist for regularly checked coins)

In conclusion, it is good we use the initiatives already shared in week-6 lectures and Homework on Market Caps in cryptocurrencies positively. Knowing where the risk is minimal with conservative profits, where it is high with marginal profits and where it is highest with double profits would guide us to combine all platforms geared towards making more profits and minimal losses.

For the watchlist, we should be strategic in putting them up to follow trends and make precision decisions as when due.

Thank you for task as it has also widened my knowledge on the participated topics discussed. @stream4u, this is my entry for week-6 homework Task.

Cc:
@steemcurator01
@steemcurator02

Reference 1

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Hi @xkool24

Thank you for joining Steemit Crypto Academy and participated in the Homework Task 6.

Review Visit LevelTask RemarkCommentGuidance, Feedback, SuggestionsGradeVerification (Done, Hold)
First
Completed
Good, explained very nicely.
All looks good.
7
Done

Verification for your Homework task 6 has been done by @Stream4u.

Thank You
@stream4u
Crypto Professors : Steemit Crypto Academy

Thank you professor @stream4u. I think this is my first attempt in your homework and I believe I can get better as I continue to participate.