The Ultimate Guide To Investing In Coin Market Cap

CoinMarketCap is a website that provides up-to-date cryptocurrency prices, charts, and data about the emerging cryptocurrency markets. It was founded in May 2013 by Brandon Chez and has since grown to become one of the top 1,000 largest websites in the world. CoinMarketCap offers a wide range of features that can help users navigate the world of crypto, from cryptoasset rankings on its homepage to its Headlines section, which aggregates all the latest cryptocurrency and blockchain news. One of the most basic things users can do on CoinMarketCap is to view cryptoasset rankings on the homepage. Each cryptoasset is ranked according to CoinMarketCap's methodology, and users can see several pieces of data about each asset, such as market capitalization, price, 24-hour and 7-day change, volume, and circulating supply. The site also provides a small graph visualization of each asset's trajectory over the past week.

Understanding global market metrics

Global market metrics are essential for investors to understand the overall health and sentiment of the cryptocurrency market. These metrics provide a snapshot of the market's performance and can help investors make more informed decisions. Here are some key global market metrics to consider:

• Total Cryptocurrency Market Capitalization: This is the sum of the market capitalizations of all cryptocurrencies. Market capitalization, or market cap, is calculated by multiplying the total number of coins in circulation by the current market price of a single coin. The market cap helps investors understand the overall value and growth of the cryptocurrency market.
• 24-Hour Trading Volume: This metric represents the total financial value of coins or tokens traded over a 24-hour period. It is usually denominated in US dollars and helps investors gauge the level of activity and liquidity in the market.
• Bitcoin Dominance: Bitcoin dominance is a measure of Bitcoin's market share in the overall cryptocurrency market. It is calculated as the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies. Bitcoin dominance provides insights into investor confidence in Bitcoin relative to other cryptocurrencies.
• Market Sentiment Indicators: Various indices and indicators, such as the CMC Crypto Fear and Greed Index, analyze price momentum, volatility, derivatives market data, and social trends to assess the overall sentiment and emotional biases of the market. These indicators help investors understand whether the market is driven by fear or greed, allowing them to make more objective investment decisions.
• Open Interest: Open interest refers to the total value of outstanding derivative crypto contracts that have not been settled yet. It is a key metric for understanding market sentiment and liquidity in the derivatives market. Traders and analysts monitor open interest to identify potential shifts in market sentiment and increased volatility.
• Implied Volatility: Implied volatility measures the expected future volatility of a cryptocurrency asset, such as Bitcoin or Ethereum. It reflects the market's expectations of potential price swings and is an essential factor in options trading and risk management.

When analyzing global market metrics, it is crucial to consider multiple factors and not rely on a single metric in isolation. For example, while market capitalization provides insights into the overall value of the market, it is also important to assess market trends, stability, and your own financial situation when making investment decisions.

Additionally, global market metrics can vary across different sources and exchanges due to differences in calculation methodologies and data sources. Therefore, it is recommended to refer to multiple sources and cross-reference data to make more informed decisions.

Accurate coin metrics

CoinMarketCap is a website that provides useful information, statistics, and charts about cryptocurrencies. It is known to have the most accurate information on thousands of cryptocurrencies. Here are some tips on how to use CoinMarketCap to get accurate coin metrics:

Global Market Metrics

Upon landing on the CoinMarketCap homepage, you will see some global metrics at the top. These metrics include the total number of cryptocurrencies listed, the total number of markets, the global market cap of the entire cryptocurrency industry, and the total 24-hour volume transacted across all exchanges for all listed cryptocurrencies. Bitcoin dominance is also included in the global metrics, which is calculated as the market cap of Bitcoin divided by the total market cap.

CoinMarketCap provides accurate and reliable data for individual coins. By clicking on a coin, you can view its dashboard, which includes basic metrics such as market capitalization, price (in US dollars, BTC, or ETH), and circulating, total, and maximum supplies when available. The website has reliable integrations with exchanges and coins, ensuring consistent and accurate data.

Research Any Currency

CoinMarketCap allows you to research and compare thousands of coins in one place. You can search for a specific coin by typing its name or ticker symbol (e.g. BTC for Bitcoin) in the search bar. This feature saves time and provides a comprehensive overview of different cryptocurrencies.

Exhaustive Graph Data

CoinMarketCap offers exhaustive graph data for each coin, providing a visual representation of current and historical pricing data. You can customize the graphs by changing the date range, viewing prices in different currencies (USD, BTC, or ETH), including/excluding market cap and 24-hour volume, and choosing between linear and log graphs.

Useful Links

When you click on a coin's dashboard, you will find a variety of useful links, such as the official website, blockchain explorers, communities, technical documentation, and information on whether the coin is mineable or not. These links provide additional resources for further research and analysis.

By utilizing these features on CoinMarketCap, you can gain accurate coin metrics and make more informed investment decisions in the cryptocurrency market.

Researching any currency

CoinMarketCap allows you to research any currency you want. You can search for any of the thousands of coins listed by typing the coin's name or ticker (e.g. BTC for Bitcoin) in the search bar in the upper right corner. This feature saves you a lot of headaches by allowing you to research thousands of coins from one place.

CoinMarketCap provides useful information, statistics, and charts, and is known to have the most accurate information. It is ranked as one of the top 1,000 largest websites in the world.

Each coin's dashboard includes basic metrics such as market capitalization, price (in US dollars, BTC, and sometimes ETH), circulating, total, and maximum supplies when available.

CoinMarketCap also provides exhaustive graph data. This data is particularly useful as it gives you a visual view of the data and lets you get as granular as you want when analyzing current and historical pricing data.

You can:

• Change the date by selecting a time period (1y, 3m, 1m, 7d, 1d) to view historically, or manually adjust a time frame
• View prices in USD, BTC, and ETH (depending on the coin)
• Include/exclude the market cap and the 24-hour volume
• View linear or log graphs. The linear view is easier to read, but the log graph can give you a more accurate overview.

CoinMarketCap also provides useful links for each coin, such as:

• The official website
• The best blockchain explorers available
• Communities (e.g. forums, Telegram/Discord groups)
• Technical documentation
• Whether it's a coin or a token
• Whether it's mineable or not

These links are particularly trustworthy.

Other ways to research a currency

• Explore social media platforms: Observe what coins the masses are attracted to and what they will likely invest in.
• Analyze upcoming events: Upcoming events can be a great source of information, especially if you can identify how similar events have impacted coin prices in the past.
• Research the fundamentals: Check a coin's fundamentals to discover which cryptocurrencies provide real-world usability. Look for coins that are trying to solve a real-world problem and have actual usability, rather than simply trying to do what existing coins are already doing but better.
• Discover trending topics: Checking trending coins and events should be at the top of your list. You can use keyword tools like Ahrefs and KWfinder to analyze trending topics.
• Utilize the power of niche forums: Forums like Bitcointalk or crypto-related subreddits can provide in-depth information about a coin and its upcoming events. You can also connect with individuals who may be more experienced.
• Go to crypto meetups: Attending crypto meetups can be a great way to hear different perspectives and learn more about the technical details of a coin.
• Observe transaction volume: Check the transaction volume of a coin over time. Only a handful of exchanges show the real transaction volume of the coins on their platform, including Binance and Kraken.

Final thoughts

Remember that researching a cryptocurrency will help you make more informed investment decisions and improve your future investment choices. It is important to get different angles and opinions by using a variety of tools and methods.

Additionally, always remember to only invest what you can afford to lose, as even the biggest cryptocurrencies like Bitcoin can be volatile.

Visualising data with graphs

CoinMarketCap, a popular cryptocurrency data platform, provides users with visual tools such as charts and graphs to aid their investment journey. The platform offers a plethora of data, including current and historical price information, market capitalisation, and trading volume.

Bar Graphs

Bar graphs are useful for tracking changes over time and comparing one group against others. For example, you can use a bar graph to visualise the monthly traffic of an online business, product comparisons, or marketing conversions. It is recommended to use consistent colours and horizontal labels, and to start the y-axis at 0 to accurately reflect the values in the graph.

Line Graphs

Line graphs are ideal for revealing trends or progress over time and can be used to show multiple categories of data. They are best suited for tracking continuous data sets and comparing changes across different groups. For instance, a business may use a line graph to compare sales rates for different products over a certain period. When designing line graphs, use solid lines only and avoid plotting more than four lines to prevent visual distractions.

Bullet Graphs

Bullet graphs are effective for showing progress towards a goal and comparing it to other measures. They are particularly beneficial for analysing data in a tight visual display and making quick decisions. For instance, you can create a series of bullet graphs to measure performance against benchmarks for customer satisfaction, shopping habits, or social media usage. When designing bullet graphs, use contrasting colours to highlight data progression.

Column and Line Graphs (Dual-Axis Charts)

These graphs are used to compare two data sets with different measurement units, such as rate and time. For instance, as a marketer, you may want to track marketing conversions and website traffic simultaneously. When designing dual-axis charts, use individual colours for the lines and columns to differentiate the data sets and make the graph more visually appealing.

Pie Charts

Pie charts represent data in a circular graphic, with each slice representing a percentage of the whole. They are useful for showing customer personas in relation to all customers, revenue from different products in relation to total sales, or the percentage of total profit from various store locations. When designing pie charts, ensure that the slice values add up to 100% and that there are not too many categories, as this may lead to confusion.

Scatter Plot Charts

Scatter plot charts are ideal for visualising the relationship between two different variables or revealing distribution trends. They are particularly useful when there is a large data set, making it challenging to quickly identify patterns. For example, you can use a scatter plot chart to compare employment and manufacturing output, retail sales and inflation, visitor numbers and outdoor temperature, or sales growth and tax laws. When designing scatter plot charts, consider including more variables, such as different shapes or sizes, to incorporate more data.

By utilising these graph types and following design best practices, you can effectively visualise data related to cryptocurrency investments, making more informed and confident decisions.

Finding where to buy a cryptocurrency

If you’re interested in buying cryptocurrency, you need to open an account with a crypto exchange. There are hundreds of exchanges to choose from, and it can be challenging to find the right one for you. Some of the best crypto exchanges include:

• Coinbase: Coinbase offers an easy-to-use interface and a simple purchase process. It provides more than 200 tradable cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, and has strong security features and user reviews. However, it charges relatively high fees for convenience and is not available in all 50 US states.
• Kraken: One of the oldest crypto exchanges, Kraken offers a solid range of coins and very competitive trading fees. It provides two trading platforms: Kraken and Kraken Pro. The basic Kraken platform offers "Instant Buy", while Kraken Pro is aimed at advanced users and offers volume discounts and lower costs. Kraken also provides good customer service options, including a chatbot and phone support, and publishes educational material on cryptocurrency. However, it is not available in all 50 US states, only accepts a select few fiat currencies, and no longer offers crypto staking to US customers.
• Gemini: Well-suited for crypto traders of any skill level, Gemini has a simple, intuitive user interface and is available in all 50 US states. It offers a wealth of educational materials on cryptocurrency in its Cryptopedia library, covering topics from advanced crypto trading strategies to decentralized finance (DeFi). However, it has a convoluted fee structure when not spot trading and limited customer service options.
• Crypto.com: Crypto.com provides a very good selection of more than 250 tradable cryptocurrencies. It offers unique perks and crypto rewards for Crypto.com Visa Card users, and users can take advantage of its utility token Cronos (CRO) to pay fees and earn other benefits. Crypto.com also provides high cybersecurity ratings. However, it charges higher trading fees for low-volume crypto investors.
• KuCoin: Headquartered in Seychelles, KuCoin provides access to a wide library of altcoins at low fees. It offers a broad selection of tradable cryptocurrencies, competitive trading fees, and volume discounts on fees. The platform also offers advanced features like margin trading and futures trading, and accepts credit and debit cards. However, KuCoin is not licensed in the US, and funds kept on the platform are not insured. It also suffered a major hacking incident in 2020.

Another option for finding where to buy a cryptocurrency is to use CoinMarketCap. This site provides useful information, statistics, and charts, and is known to have the most accurate information. To find out where to buy a specific cryptocurrency on CoinMarketCap, click on the market tab, and you’ll see all exchanges and trading pairs. Check prices and select the most interesting one for you.

Frequently asked questions