What is Market capitalization

The market capitalization of a cryptocurrency could be representative of the digital currency’s value and popularity. It is computed as the product of the cryptocurrency’s price and its circulating supply. Two different cryptocurrencies could have similar market caps, despite having significantly different prices because of the differences in circulating supply. Crypto investors usually diversify their portfolios with various cryptocurrencies of different market caps to hedge their risks.

Market capitalization

Market cap is the product of a cryptocurrency’s price and its circulating supply.

Related terms

Monetary policy Mining Margin trading Market order Multisignature Maker

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