The difference between a high cap and low cap in crypto is like the difference between Apple and a penny stock in stocks. That is, one is much more risky than the other.
A section on cryptocurrency investing and trading tips and tricks designed for novices, but with insights anyone can enjoy.
For informational and educational purposes only.
The market cap of a coin is the total number of coins times the price. (Market capitalization) = (Cost per token) x (Number of tokens).
“VC coins” are crypto projects with tokens that raised money from private investors rather than doing public ICOs.
In crypto trading it is important to understand “the spread” between bids and asks, the liquidity on the order books, and how market orders can cause slippage on illiquid books.
The Ethereum Investment Trust (ETHE) is an investment product by Grayscale which gives investors and traders exposure to Ethereum (ETH).
We discuss how to use Bollinger Bands for automated trading. The key to creating an effective Bollinger Band strategy is finding the right parameters.
You don’t have to buy a whole Bitcoin to own Bitcoin, you can buy a fraction of a Bitcoin. You can own as little as 0.00000001 BTC (AKA 1 satoshi).
You might hear that GBTC (or ETCG) has a “premium.” This is a reference to the difference between the value of the holdings of the trust vs. the market price of the holdings.
Bitcoin Dominance is a measure of how much of the total market cap of crypto is comprised of Bitcoin. It can help you understand the trend of BTC and alts.
You can use a self-directed IRA to invest in Bitcoin and other cryptocurrencies. However, options are limited with a 401(k). We discuss your options for investing in cryptocurrencies with a retirement account.