HUGE PSA: Stop buying coins because “they’re under $1”

This will make more sense to you as you start to understand cryptocurrencies. Sure buy all these cryptocurrencies under a dollar there’s no problem with that, HOWEVER the problem is when you’re ONLY buying them because you think “they’re so cheap” this has no bearing in the potential gains you will receive. All that matters is the total supply and the market capitalisation that’s what gives one coin or token it’s price.

For example look at YFI , a coin that is approximately the same value as a bitcoin. Why does no one talk about it? (At least one a mainstream sense) and most people have not heard of it is because it’s market capital is still relatively small. It’s because there is a tiny amount of coins available.

XRP is the worlds 5th largest cryptocurrency by market capitalisation yet the coin is $1.60 ? Bitcoin cash is $1400 and not as big of a cryptocurrency? How is this possible? Well there are 100 billion coins out there as opposed to BCH 21 million. This is how market capitalisation works.

It’s time when thinking about potential in coins to be realistic and it’s all about the circulating supply and the total amount of money in the asset. I see people saying “imagine doge reaches bitcoins price” that is just not even possible by any means.

Doge has an approximate market cap of 75 billion right now as opposed to bitcoins approximate 1 trillion.

Let’s just round it to about 75 billion goes into 1 trillion 15 times for simplicity sake. This would mean if DOGE reached bitcoins level it would still only be approximately $7-8

So the whole point of this post was to pay more attention to total market cap as opposed to a specific value. It’s hard to grasp the concept starting out as a noob but it will make more sense in time. That’s why all these new projects aim to reel in easy buyers with giving you 10 million tokens for $100 and have you thinking “oh if this only goes to $1 I’ll be a millionaire one day” and it’s probably not even realistic at all.

Thanks for listening and goodluck!