This text is informative in nature and should not be considered an investment recommendation. It does not express the personal opinion of the author or service. Any investment or trading is risky, and past returns are not a guarantee of future returns. Risk only assets that you are willing to lose. How does market cap work crypto By ranking coins based on market cap we are basically categorizing crypto projects based on popularity and risk factor. It shows how much risk we are basically dealing when investing in a cryptocurrency. The underlying factor involved in this are projects strength, core values, volatility, liquidity and responsiveness.
Many major stock indexes like the S&P 500 and the Dow Jones Industrial Average use float-adjusted market cap, as do many index funds and exchange-traded funds. Float-adjusted market cap is meant to give an even more accurate picture of how the market views and values a company’s stock. Explore the specifics of the S&P 500 to learn more about this. Best Cryptocurrency Exchanges As a Premium user you get access to the detailed source references and background information about this statistic.