Take a closer look at price charts, patterns and glossaries to understand cryptocurrency trends.
* Circular Supply-Circular Supply means the number of coins or tokens that are circulating. Cryptocurrency It is on the market and is accessed by the general public.
-Circular supply increases or decreases over time.
-It depends on the frequency of mining to generate a new currency every 10 minutes for Bitcoin.
The circular supply of Bitcoin will increase further until the total inventory of 21 million coins is mined.
-You can also deliberately reduce the circular supply to increase the value created by the current shortage of coins and tokens.
-Artificial scarcity is created by burning coins on a regular basis.
* Market Capitalization-Cryptocurrency ranking is based on market capitalization or market capitalization.
-Market capitalization is determined by multiplying the total number of coins mined at any given time by the price of one coin.
* Cryptocurrency market capitalization explains:
-A standard for measuring the stability of digital assets.
-A high market capitalization indicates that the cryptocurrency of the transaction is less volatile.
-Cryptocurrencies with low market capitalization are susceptible to market trends and can experience sudden sharp losses and profits.
Cryptocurrencies are divided into three types based on market capitalization.
* High-cap cryptocurrencies-those with a market capitalization of over $ 10 billion that investors consider to be the least risky.
-Bitcoin, Ethereum and Solana are some of the examples in this category.
* Medium-cap cryptocurrencies have a market capitalization ranging from $ 1 billion to $ 10 billion.
-These are more risky than the high cap ones and may be unused.
-FTX tokens and Hedera are examples.
* Small cap cryptocurrencies have a market capitalization of less than $ 1 billion, are the most volatile and are heavily influenced by market sentiment.
-Terra and Immutable X are examples.
* Liquidity-This term is also one of the most used terms in the crypto market.
-Liquidity refers to the capacity and ease with which cryptocurrencies can be converted to cash without degrading the value of the cryptocurrency. Of all digital assets, Bitcoin has the highest liquidity.
-Liquidity generally increases with increasing adoption of cryptocurrencies and the wider acceptance of cryptocurrencies as a medium of exchange.
-High liquidity means lower volatility. The level of liquidity usually depends on the number of users, trading volume and trading frequency of a particular platform.
-Usually, liquid cryptocurrencies are traded around their market price.
* Trading Volume-Trading Volume or simply the amount of cryptocurrency means the total number of crypto units traded in a particular time period.
-This trading volume is calculated using the following data.
Cryptographic exchange records transactions that the buyer and seller have reached an agreement at a particular price.
-High cryptocurrency trading volumes mean that buyers are still interested and liquid markets are thriving.
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