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- 🍁 Golden Autumn, Big Prizes Await!
Gate Square Growth Points Lucky Draw Carnival Round 1️⃣ 3️⃣ Is Now Live!
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🗓️ Deadline: October 8, 2025, 24:00 (UTC+8) - 🥊 You’ve entered the Trading PK Arena, matching your opponent now...
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Gate’s brand-new Indicators Radar feature is live! Here you can:
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📌 Note: This feature is available only on app version 7.20.5 or above.
What is market capitalization (Market Cap) for beginners?
Market Cap, or Market Cap, is basically a way to measure how much a cryptocurrency is worth in the entire market. You can better understand its size in the crypto world.
How is that calculated?
It's quite simple:
Market Cap = Price of 1 coin × Total coins circulating
Let's see:
$ 80,000 × 19,500,000 = $ 1.56 trillion
Huge, right?
Why call the Market Cap?
Shows the size of the fish.
Big cryptos (Bitcoin, Ethereum): Less risky. More stable.
Average cryptos: Risk ok. They can grow well.
Tiny cryptos: Super risky. But sometimes they explode in value!
Trust? The big ones seem more serious. The small ones... somewhat unstable.
Can we compare? Bitcoin vs Ethereum? The Market Cap helps to see who is ahead.
What is kind of in the shadows...
Real value? Not always. Some coins just seem like hype, you know? A high Market Cap doesn't necessarily mean utility.
Future? Somewhat hazy. A large Market Cap today does not guarantee success tomorrow. It's just part of the story.
Thinking in another way:
Market Cap is like the "total value" of a company on traditional exchanges. Nvidia is huge, trillions in value. In the crypto world, Bitcoin is like the "Nvidia" - the big one that dominates.
Understanding this, it seems that it is possible to navigate better in this sea of cryptocurrencies. It is not a guarantee, of course. But it helps.