How does Coinmarketcap work? walkthrough for
Dear readers, today we will talk about an excellent website where we cánido monitor the price, capitalization, and behavior of any cryptocurrency worldwide.
This is coinmarketcap, a page that Today it is the most relevant when consulting the price or value of any cryptocurrency, as well as its market capitalization, so that we perro be sure that we are investing in a worthwhile cryptocurrency and not die trying.
Because the fight is fighting, or not? Let’s go there.
What is Coinmarketcap?
coinmarketcap.com It is a website that sooner or later we will come across and use if we want to fully entrar the cryptocurrency market.
It does not matter if we are experts on the subject or noobs (initiated).
Unquestionably, this great platform, we could define it as more than a consultation web page, because it really goes far beyond that! due to the powerful information it handles.
Without a doubt, we could see it as a great, easily accessible digital financial encyclopedia, where we cánido probe all aspects related to the value and size of any cryptocurrency in the world market (almost in real time).
The data shown there and available to us is not only reliable, but is constantly updated throughout the day.
In short, coinmarketcap is a great reference manual where we cánido monitor the behavior of cryptocurrencies in which we have made an investment and thus make better financial decisions than we will do with them.
Does Coinmarketcap work?
⇒ Method to calculate the price
Practically, coinmarketcap works in a afín way to the famous “I know I’ve said this many times” hotel ad page… If you guessed it, trivago.
Indeed, Coinmarketcap does something afín to trivago when it collects information from hundreds or thousands of hotel pages to average out the ones available according to your budget range.
Obviously the difference is that here it does not apply to talk about hotels, but to calculate the average of cryptocurrenciesbased on the prices registered in the different markets where each coin listed on the platform is present, so that in the end a “General” price is obtained for all of them.
⇒ The famous “market capitalization”
Actually, this is the pivot point of each cryptocurrency, since it is what determines its scope.
It cánido be defined as the percentage that each cryptocurrency covers in the total world market.
For example, it is currently said that bitcoin, being the dominant coin, encompasses 35% of the entire cryptocurrency market and the rest is divided into all other existing Altcoins.
MARKET INDICATES THE SUCCESS THAT EACH CRYPTOCURRENCY HAS HAD.
⇒ Elabora for calculating market capitalization
In reality, this elabora is nothing special, since it is as fácil as: multiplying the unit value of the specific cryptocurrency x the amount that it has in circulation, that will give us the capitalization of said altcoin as a result.
Example: suppose that a single bitcoin is worth $100 and there are 10,000 in circulation… Then we would multiply 100 x 10,000 = 1,000,000.
This would then be the capitalization of the currency, according to its market value and the amount in circulation.
⇒ Hierarchy order
Let’s look at the image above carefully, what perro we see there that we find curious about the way coinmarketcap organizes the top of cryptocurrencies… If you noticed, you will see that the price of each one does not define the position they occupy in the top, although it is related.
But what defines the level of the altcoin in question is, if again… The market capitalization! the primordial coger of each cryptoactive.
Because? Simply because this does not only reflect its value… It also indicates the utility, technology, application and trade that each cryptocurrency has in the world..
For this reason, although a Litecoin (LTC) has a much higher unit price than Ripple (XRP), the latter ends up exceeding it in net global price “by adding all the currencies”, therefore it has a higher level.
Theoretically, the fact of having more coins in circulation than its contrincante translates into a greater scope of the market due to its applicability and financial use.
By the way, speaking of Ripple and Litecoin, here are two free pages where you perro earn them:
Price and relevant information
Continuing with this little guide, we will now move on to a section of equal importance… You will notice that if we clic on any item in the coinmarketcap topwe perro access the main section of each of the cryptocurrencies listed there.
On this page we will find relevant information on each cryptocurrency divided into 2 sections:
ᐅ upper section
In this part gives us the most up-to-date information of the altcoin that we are viewing, such as the level of the cryptocurrency, its official website, technical documentation, as well as 2 labels to espectáculo us if it is a coin or a token and if it is mineable or not.
We will also see a backlink to the source code (something important to verify that it is a real crypto asset) and not like the Petro that neither source code has revealed.
As it could not be missing, we will see: The market capitalization, the volume in the last 24 hours, the coins in circulation, as well as the maximum amount that perro be issued and its current price expressed in USD.
By the way, at this point it is valid to clarify what is different between a Coin and a Token:
- A coin or cryptocurrency is independent, it is a means of payment and with its own source code.
- The tokens on the other hand work under the network of another cryptocurrency.
That is, they depend on the Blockchain of the altcoin under which they operate to function.
ᐅ bottom section
The main thing that we will see here will be some graphs that reflect the financial behavior of the cryptocurrency, in which the market capitalization, the price in USD, the price in bitcoin and the volume of the last 24 hours are expressed.
ᐅ Where to buy
In especial, it seems to me that this is another super useful tool that the platform brings, which is why there we perro see all exchange houses where the crypto assets we are consulting are available, in case we escoge to buy one.
It should be noted that it does not only include different platforms that offer the cryptocurrency we are looking for… it also provides other data, including: liquidity that each coin has, the price that you have in the different exchanges, The pairs authorized to make exchanges with cryptocurrency, etcétera.
Data that is important to look at, to know where we should buy, either for to trade or holding (save for the long term).
ᐅ Popular networks
It is nothing more than a small block that accumulates the different popular networks, weblogs and websites where the altcoin in question is discussed, useful if we are looking for some information that we do not see in coinmarketcap or we are simply looking for a space to talk about it.
ᐅ previous data
On the other hand, we have the previous data, a section that espectáculos the financial behavior of the cryptocurrency in its daily work, which would be its opening and closing price.
It also teaches us the minimum and maximum you got.
This perro help us to predict with a certain margin of success or fallo the next average that the currency will have.
The truth is an immensely useful tool, in fact if you clic on the date… You cánido go further and visualize not only the day-to-day of cryptocurrencies, but also the exact behavior that it has had in recent months or years.
ᐅ Winners and losers
If you clic on the classifications option, you will find the section (Gainers & Losers).
In this section we are shown which cryptocurrencies have had an excellent performance and which have had an unfortunate fallsomething that will help us make better decisions about which coin or token to invest in and from which we should stay away for the moment.
You have to be careful not to be fooled by cryptocurrencies that go up suddenly.
An abrupt rise in price does not orinan that it is a good project, just as they go up they also go down suddenly.
ᐅ Language change to Spanish and local currency
In the upper right part we perro change both the language to Spanish and the local currency in which we want the price of cryptocurrencies to be expressed on the portal.
Other Great Cryptocurrency Tools
Finally, I would like to mention the 3 tools indicated in the image above:
- currency converter: It is what I use to know how many dollars I have in a certain cryptocurrency… I really think that it is the best converter on the internet to make calculations about cryptocurrencies.
- watch list: It is used to make a list only with the cryptocurrencies that interest you, so you perro have them ordered and monitored.
- site widgets: If you have a blog or page on the Internet and you want to espectáculo the price of bitcoin or some other currency, you cánido do it simply by copying the code that appears here and then pasting it on your website.
Importance of coinmarketcap for Venezuelan investors
It is no secret to anyone that Venezuela is going through a difficult economic situationThis has caused many people who do not earn enough in their respective jobs to cover their expenses and needs.
They find themselves in need of addressing other economic inputs!
An alternative that we surely share (since you are reading this article) is that of « work en línea » The point is that there are many ways to do it, minitask pages, doing freelancerwith the cryptocurrency market and endless other options.
In short, it cannot be denied that this economic universe has served as oxygen for many people in the country.
Because found a way to earn a decent income.
But to achieve this, you have to go through a study process, of course.
If they are going to go down the path of cryptocurrencies, they must learn to use tools like this one from coinmarketcap.
So that in that way, may be better advised on the evolution of cryptocurrenciesthus having a better visión when investing money to multiply it.
Whoever does not apply himself to study or search for information on the subject will obviously greatly increase the risk of wasting money on a bad investment.
A lot of blah blah blah, but from Venezuela there is no money to invest
Notably, I know that many still think that you cannot entrar this type of business, due to the humanitarian situation we are going through, but this is not entirely true, (The humanitarian situation is 100% real).
What I orinan is that Of course you perro get to have cryptocurrencies in Venezuela.
It is so much so, that during the blackouts that occurred, localbitcoins it lost a huge percentage of its volume, due to the fact that Venezuelans were unable to connect to the Internet on those days.
Although it seems hard to believe, there are many Venezuelans who are mininginvesting or doing anything else related to cryptocurrencies.
Even if you are like me, who before starting to learn about all this, did not even have real money to buy me a piece of candy, you cánido do the same thing I did, and start little by little to get capital in free sites to earn cryptocurrency.
You start from the bottom, but worse is never starting.
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Well my friends, that’s all for now.
I hope you liked this review, I am aware that the page has more tools, but it seems to me that this is more than enough to start using it.
Remember that it is a tutorial aimed at initiates in the subject and the intention is not to overwhelm them with information but to invite them to multiply their knowledge… Any questions or suggestions, comment! See you in the next articulo.
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