Invest by understanding the supply of coins, know why market cap plays a role in determining price!

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How are you all? I hope everyone is doing well,
Today I will talk about a very important topic, today I will talk about which coin to invest in, we all have to first pay attention to the supply of the coin,
When a coin is developed, a limited supply is given, or there are some projects that have unlimited supply,
Usually its price is determined based on the supply of the coin,
However, it is the other way around in some cases, such as when a project launches in the market, the price of the token depends on how much they have, because when you launch a coin in the market, there is a need for huge liquidity,
The more liquidity you add, the better the price of the coin will be,
Basically, the liquidity and supply of a project depend on that, but the price of the token depends on that,
We often suffer huge losses,
So suppose a project comes to the market, then every When the coin price is $0.40, we think that maybe it will go to $1 very soon, then we basically become a victim of FOMO and buy this coin,

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Now the thing is that usually when a project's coin is newly launched,
They basically launch 5% to maximum 10% of the coin market,
And because of such a small amount of coins in the market, the value of this coin is very good,
And then they slowly start unlocking the rest of their coins,
At one time when they bring 100% of the coins to the market, the price of the coin slowly starts coming down due to the high number in the market,
That means it is called circulating supply,
Again, many times we notice one thing that the market cap of the coin is okay but the price of the coin is very low,
The reason is that usually the market of the coin is determined by the circulating supply,
Because of the gradual increase in the circulating supply, the market cap is okay but the price starts coming down, such as POL Token, EX Polygon (Matic)

And I I think it is not the fault of the coin team, many times we get angry with that project, actually they are not at fault here because they must bring the remaining coins to the market,
such as POL Token,EX Polygon (Matic)

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So before investing in any coin, we always have to check what is the Max supply of this coin and what is the circulating supply at the moment,
If we analyze these things, then we will be able to avoid losses,

I am ending here today, everyone stay well, Allah Hafez