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What is the meaning of large cap in the context of cryptocurrency?

avatarSandeep SalariaDec 27, 2021 · 3 years ago3 answers

In the world of cryptocurrency, what does the term 'large cap' mean and how is it relevant?

What is the meaning of large cap in the context of cryptocurrency?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Large cap in the context of cryptocurrency refers to cryptocurrencies with a high market capitalization. Market capitalization is calculated by multiplying the current price of a cryptocurrency by its total supply. Large cap cryptocurrencies are typically the most well-known and established ones, such as Bitcoin and Ethereum. They often have a higher market value and are considered less volatile compared to small cap or mid cap cryptocurrencies. Investors often look at large cap cryptocurrencies as a safer investment option due to their stability and liquidity.
  • avatarDec 27, 2021 · 3 years ago
    When we talk about large cap in the context of cryptocurrency, we are referring to cryptocurrencies that have a high market capitalization. Market capitalization is a measure of a cryptocurrency's value and is calculated by multiplying its current price by the total supply of coins in circulation. Large cap cryptocurrencies are usually the ones with the highest market value and are considered more stable compared to small cap or mid cap cryptocurrencies. They are often seen as less risky investments and are favored by institutional investors and traders who prefer less volatility in the market.
  • avatarDec 27, 2021 · 3 years ago
    Large cap in the context of cryptocurrency refers to cryptocurrencies with a high market capitalization. Market capitalization is an important metric that indicates the size and value of a cryptocurrency. Large cap cryptocurrencies are typically the most established and widely recognized ones in the market. They often have a larger user base, higher trading volumes, and more liquidity compared to small cap or mid cap cryptocurrencies. Large cap cryptocurrencies are considered to be less risky and more stable investments, making them attractive to both individual and institutional investors.