Marketcap

Marketcap is the abbreviation for market capitalization. It is a way of ranking crypto where bitcoin is of course number 1, for as long as it takes. The ranking is determined by the following calculation; market capitalization = price x circulating supply. The ranking is best displayed on:

1. Coinmarketcap; the most widely used site and app to find out how the market capitalization develops.
2. Livecoinwatch; offers the same, but has more personal options that can be customized as needed.

To determine the price of one crypto, an average is taken of the price on all crypto exchanges, including Binance, HitBTC, OKEx and Bitfinex. There is one major disadvantage to this. When there are large amounts sell orders (sell wall) on a stock exchange, it will negatively influence the average price. If this happens with bitcoin, the altcoins (often) follow the downward trend. To avoid these consequences, investors should sell ‘over the counter‘.