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What does 'cap' stand for in the world of cryptocurrency?

avatarBluechipspaceJan 16, 2022 · 3 years ago3 answers

In the world of cryptocurrency, what does the term 'cap' stand for and how is it relevant to the market?

What does 'cap' stand for in the world of cryptocurrency?
Cryptocurrency
Market
Cap

3 answers

  • avatarJan 16, 2022 · 3 years ago
    The term 'cap' in the world of cryptocurrency stands for market capitalization. It refers to the total value of a cryptocurrency, calculated by multiplying the current price of a single coin/token by the total supply. Market cap is an important metric as it provides an indication of the size and popularity of a cryptocurrency within the market. It can also be used to compare the relative value of different cryptocurrencies.
  • avatarJan 16, 2022 · 3 years ago
    When we talk about 'cap' in the world of cryptocurrency, we are referring to market capitalization. It's a measure of the total value of a cryptocurrency and is calculated by multiplying the current price by the total supply. Market cap helps investors and traders understand the size and potential of a cryptocurrency. It's an important factor to consider when making investment decisions.
  • avatarJan 16, 2022 · 3 years ago
    Market capitalization, often referred to as 'cap', is a key concept in the world of cryptocurrency. It represents the total value of a cryptocurrency and is calculated by multiplying the current price by the total supply. Market cap provides insights into the popularity and potential of a cryptocurrency. It's a useful metric for investors and traders to assess the market dynamics and make informed decisions. At BYDFi, we also consider market cap as an important factor in our trading strategies.

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