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What is the difference between float and free float in the context of digital currencies?

avatarB. GrantDec 29, 2021 · 3 years ago3 answers

In the context of digital currencies, what is the difference between float and free float?

What is the difference between float and free float in the context of digital currencies?

3 answers

  • avatarDec 29, 2021 · 3 years ago
    Float and free float are terms used in the context of digital currencies to describe the availability and circulation of coins or tokens. Float refers to the total supply of a particular digital currency that is available in the market. It includes both the coins in circulation and those held by individuals or entities. Free float, on the other hand, refers to the portion of the total supply that is actively circulating in the market and available for trading. It excludes the coins or tokens that are held by individuals or entities for long-term investment or other purposes. In simple terms, float represents the entire supply, while free float represents the supply available for trading.
  • avatarDec 29, 2021 · 3 years ago
    When it comes to digital currencies, float and free float are two important concepts to understand. Float refers to the total supply of a digital currency, including both the coins in circulation and those held by individuals or entities. Free float, on the other hand, refers to the portion of the total supply that is actively circulating in the market and available for trading. It excludes the coins or tokens that are held by individuals or entities for long-term investment or other purposes. The difference between float and free float lies in the inclusion or exclusion of coins held for non-trading purposes. Understanding these concepts can help investors and traders assess the liquidity and market dynamics of a digital currency.
  • avatarDec 29, 2021 · 3 years ago
    In the context of digital currencies, float and free float are terms that describe the availability and circulation of coins or tokens. Float refers to the total supply of a particular digital currency, including both the coins in circulation and those held by individuals or entities. Free float, on the other hand, refers to the portion of the total supply that is actively circulating in the market and available for trading. It excludes the coins or tokens that are held by individuals or entities for long-term investment or other purposes. The difference between float and free float is important to consider when analyzing the market dynamics and liquidity of a digital currency. By understanding the float and free float, investors and traders can make more informed decisions.