If you’re interested in cryptocurrencies and the cryptocurrency market, you’ve likely come across CoinMarketCap before. As one of the biggest resources online for information on cryptocurrencies, it’s understandable why so many people have used their service at some point in time. But what is CoinMarketCap? Why does it matter? And how can you use it? Here’s everything you need to know about CoinMarketCap and why it matters to both newbies and experienced traders alike.
The Historical Value of Cryptocurrencies
The total market capitalization of all cryptocurrencies has experienced massive growth in recent years. According to Cryptocompare, as of November 7, 2017, more than $167 billion was invested in bitcoin alone since its inception. This figure does not include other types of digital currencies such as Litecoin, Ripple and Ethereum. With such incredible growth, many have questioned whether these values will continue to skyrocket or return to their baseline levels. In order for an investor to understand what drives a cryptocurrency’s price, it’s important to examine its historical value. An investor should first compare a cryptocurrency’s current price with its historical value (using sites like CoinMarketCap) before investing in or purchasing a particular currency.
The Basic Functions of a Cryptocurrency
Before you can fully understand what coinmarketcap does, or why you should even care about cryptocurrency at all, you’ll first need to know a little bit about how cryptocurrencies operate. Most people are familiar with traditional currency—dollars, euros, yen—and most of them probably also understand that these are fungible assets: each individual unit is exactly equal to any other. If I hand my waiter a $10 bill, he can rest assured that no one else will be showing up later to ask for their change in tuna sandwiches. Cryptocurrency functions similarly: each token has value because we all agree (usually via consensus mechanisms built into its software) that it does.
The History of Crypto Trading
When most people hear about crypto-currency, they often think of Bitcoin, which was first introduced in 2009. While Bitcoin still garners a lot of attention and continues to be a topic of conversation around water coolers across America, it’s not necessarily indicative of an emerging or even maturing market. The truth is that there are thousands upon thousands of cryptocurrencies available today, many with unique features or characteristics. Today’s coinmarketcap list consists mostly of utility tokens—the types that have particular functions on specific platforms—and privacy coins (cryptocurrencies designed for anonymity), but there are others in development for everything from advertising to cloud storage.
How to Invest in a Cryptocurrency
If you’ve heard of Bitcoin, or Ethereum, or Litecoin—or any other cryptocurrency that’s been in mainstream news lately—but don’t know what any of them are (other than a big word made of letters that seems to be taking over your Facebook feed), you’re not alone. If you’re new to investing or have been considering getting involved with cryptocurrency but have felt intimidated by all of its jargon, CoinMarketCap might be an unfamiliar-sounding site to keep tabs on when it comes to your portfolio. But don’t worry: This handy resource can provide valuable insight into how coins are performing and also offer clues about what’s coming next. Here’s everything there is to know about CoinMarketCap, including some easy ways for beginners to get started with investing in digital currencies.
How to Monitor a Cryptocurrency Portfolio
The easiest way to monitor a cryptocurrency portfolio is to use a site like CoinMarketCap. On top of being able to look at cryptocurrency’s market cap and price changes, you can also check on prices for individual cryptocurrencies. This means you’ll be able to quickly see whether or not something has had an extraordinary performance or is just having a bad day. If you want to know more about why monitoring your portfolio matters, check out Cryptocurrency Portfolio Basics: Reasons You Need One . If you’re looking for more information about crypto portfolios, I highly recommend reading How To Start Investing In Cryptocurrencies .
