Steemit Crypto Academy | week-6 By @stream4u | Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.

What is capital?

First of all, let me tell you what capital is. And I will try to write this homework in very simple words. So capital refers to all the personal things that a person starts a business with. We call it capital. Capital means that amounts are assets. Everything we invest to build a business or a company is called capital. As a person wants to start his own business and this man has two million rupees. And if he invests five million out of two million in business, then it will be called five million capital.

Market Capitalization

Let me tell you what market capitalization is. I think that before understanding small and large capital view, we should have some information about market capitalization. In fact, market capitalization looks at the total share of any company. What is the value of total share of a company in any market? The total share of the company, which is our understanding share of any company, if we multiply the current market price per share, then the total value of the company will come out. I am trying to tell you in very simple words. This way we can see a company in comparison to another company. There is also the question of how we know which company is bigger and which is smaller. It will be easier for us to understand larege and small capital when we know about it. Let me give you an example. Assume I have a company called Steem Apple and the total shares of my company are five hundred. And the price of one share is ten dollars. Thus, the total shares of Adnan's company are two hundred and the price of one share is thirty rupees. So if we multiply the total share of both the companies by the price of one share, then the total cap comes. ۔

Classification on the base of market capitalisation

And this is the market capitalization on the basis of which the company is ranked all over the world. And our esteemed Professor Sahib has also talked about the same rating in his homework. And companies are divided into three categories with the help of market capitalization. Large cap, mid cap and small cap now talk about them separately.

Large Capital

Dear friends, the most important thing to understand is that the companies are also in the top 100 in the market. They are large cap companies at the moment. And if any of you want to buy any company, you have to pay the same amount as all the outstanding shares of the company. Thus, whenever we talk about a large cap company, all the companies whose shareholding value in the market is more than 10 10 billion will be included in the large cap. Thus, liquidity, voltality, all this is improved only on the basis of market capitalization. And investors invest their capital in such companies. Because these companies are very large in terms of their share ownership. And the same is true of cryptocurrency. And investors consider investing in top 100 crypto safe.

Mid Capital

mid capital companies are such companies. Their total market share ranges from 1 to $ 10 billion. And I think there are a lot of growth opportunities in such companies. But it is also true that it is not appropriate to make predictions about cryptocurrencies. When it comes to risk, I think investing in large and mid capital companies will be profitable in both long term and short term. But as Professor Sahib said, volatility can play an important role on various exchanges.

Small Capital

If we talk about small capital, then all the companies whose total share ownership in the market is less than $ 1 billion, then such companies are included in the list of small capital. And the lack of share ownership makes people reluctant to invest in such companies. Thus all the coins that are at this level come in the same capital.

Which type of Asset capital can be more profitable?

If I talk about my experience, there is risk everywhere. And if we talk about the cryptocurrency market, let's look at the losses before the first investment. And I think investing in small capital can be profitable. If we work with risk and patience. On the other hand, I have already said that risk is everywhere. I called xlm which is called stellar. Two years ago, I lost my investment by considering it as large capital. This is also a ripple. I think that if we take a risk, then small capital can give us more profit. The company will compete with another company. She will work hard to win the trust of investors. The share price will be listed on the big exchange. And there are a lot of factors that I think small capital can be more profitable.

If we talk about small caps, they have more profit and more risk. Because these are small companies. If market captalization is very low, these companies may close in case of loss. But since these companies are new, they may make a good name in the market and enrich the investor. But it's about risk. I will say here that if we want to invest in crypto for profit then we should take risk and invest in long term by testing the team of small cap company.

Thoughts on Risk Capital and Penny Cryptocurrency.

Two years ago today I bought a doge coin that was considered a crypto penny. And I bought it at the price of penny. So a month ago I bought Pundu x which was penny coin and now these two are no longer crypto penny but have made a place in top coin. The way we buy grocery to buy our daily necessities. And after buying the goods, they forget the money. In this way, if we buy all the coins which are in penny, then we buy them as if we are buying grocery for home. We can make good profit from these penny coins, whereas risk capital does not make profit. We can save our asset from risk by investing our risk capital on penny crypto asset. Risk capital can be converted into profit.

What is the Role of Watchlist? Best way to set Watchlist

What is actually a watchlist? Simply put, the watchlist yeah porfilio is the list in which all the crypto updates are known. Which we set. Because at the moment, if we take a closer look, there are thousands of coins in the market. And it becomes difficult for us individually to check which coin is in which position at that time. So for this we take help from watchlist in our portfilio. So that timely information can be obtained. So how do you create a watch list? I try to do my homework to the best of my ability. I'll show you how to create a watchlist

go to https://coinmarketcap.com/

after opening the page click on watch list ,,i show you in screenshot

now first open investing dot come website and sign up if you have not account,if you have already then ok,,

after creating account , then click on portfilio and then click on plus button to create give the name of watch list

click on watch list and then give the name of file,, i gave trading

now you can see my trading watch list

now create watch list, and add your coin as i show in screenshot

below is chart of my watch lish

below is my summary of watch lish

Conclusion

i tried my best to cover this homework week 6, i tried to explain in the home about market capitalisation, large CAP, SMALL CAP AND MEDIUM CAP WITH EXAMPLE ALSO, AND I I ALSO TRIED TO WRITE ADVANTAGE AND DISADVANTAGE OF PENNY CRYPTO AND INVESTMENT IN SMALL CAP. SO I ALSO GUIDED HOW CREATE WATCH LISH, AND HOW ADD COIN, SO IT IS MY ALL ORIGINAL OWN WRITTEN HOMEWORK, HOPE PROFESSOR @stream4u WILL APPRECIATE ME.