Many cryptocurrency investors are familiar with the website CoinMarketCap. It is crucial for newcomers to this market to grasp how to utilize CoinMarketCap and the website’s indicators. Therefore, Betomon will provide guidance on how to use CoinMarketCap for beginners in this article.
What is Coinmarketcap?
Coinmarketcap is a cryptocurrency-related website. It is referred to as a “dictionary” for people who would like to monitor or participate in the cryptocurrency market.
This website is updated frequently with new information about cryptocurrencies. In particular, it compiles and updates data on events, products, investment portfolios, capitalization, transaction volume, exchange rates, project contact information, and events.
Coinmarketcap, also referred to as Coinmarket, is the website that provides statistical data on all virtual currencies (electronic currencies, cryptocurrencies, digital currencies or algorithmic currencies) that are in circulation globally including Bitcoin and other Altcoins.
In addition to providing information about cryptocurrencies, CoinMarketCap also creates other tools for users to manage exchange-related data and community trends,… such as Exchanges, community, products…
CoinMarketCap homepage interface: https://coinmarketcap.com
Users can create an account on CoinMarketcap to access advanced services consisting of notifications about price fluctuations and comprehensive market reports. Additionally, users who have a CoinMarketCap account can complete daily tasks to earn *”Diamond” rewards. *”Diamond” can be converted into hats, shirts, and other unique gifts. Details are available here.
The formation and development process
Founded by Brandon Chez in May 2013, CoinMarketCap has rapidly expanded to become among the most reliable resources for comparing thousands of cryptocurrencies among consumers, organizations, and the media. It is frequently mentioned by CNBC, Bloomberg, and other prominent news organizations.
In April 2020, CoinMarketCap was acquired by Binance. Binance is the global blockchain company that operates the world’s largest digital asset exchange in terms of trading volume and users.
Benefits of using CoinMarketCap
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Instantaneous market information
CoinMarketCap offers price data, price graphs, and additional metrics for the majority of cryptocurrencies in the market. This allows users to be updated about the current state of the market in order to make trading decisions.
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Providing sufficient details
Complete details about a cryptocurrency project, including its website, token details, exchanges that buy and sell the token, etc., are provided by CoinMarketCap. It makes it easier for users to get the essential details about the tokens they are considering.
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High precision
CoinMarketCap helps users keep an accurate and thorough eye on the market by utilizing data from numerous cryptocurrency exchanges worldwide. Moreover, by eliminating the necessity for users to check token prices at each individual exchange, users of CoinMarketCap can also save time by utilizing data from these.
Highlights of Coinmarketcap
You can find on coinmarketcap.com detailed information about any coin such as:
- Total number of transactions over the previous 24 hours.
- The change in value over 24 hours in percentage.
- The total quantity of coins in use.
- Official website, social networking sites.
- Total market capitalization.
There are currently over 16,000 coins on the coinmarketcap statistical exchange. It is not a website for buying/selling coins or offering advice on any particular coins, merely a tool to help you track changes in coin values and then provide appropriate investment guidance.
Crucial CoinMarketCap indicators that traders should be aware of:
Dominance
Bitcoin dominance rate indicates the % Market Cap of the entire Market dedicated to BTC.
Despite changes in Bitcoin frequently indicate market volatility. Nevertheless, investors will pay attention to the smaller cryptocurrency when Bitcoin Dominance is low.
As an illustration, if Dominance declines, this is a positive indication for Altcoin.
Market Cap
Market Cap shows the total market value of a cryptocurrency’s circulating supply. It is calculated by multiplying the cryptocurrency price by the circulating supply of that coin/token.
For example, the price of Bitcoin is $50,000, and as of this writing, 18,911,350 BTC are in circulation. Following that, the market capitalization will be determined by multiplying 18,911,350 by $50,000, resulting in a market capitalization of $945,567,500,000 for Bitcoin.
Fully Diluted Market Cap
If the maximum supply of the cryptocurrency is in circulation, this data indicates the market capitalization of the cryptocurrency.
Since many crypto assets are still unmined, the circulating supply of crypto is frequently not its maximum supply.
For example, Bitcoin has a circulating supply of 18,911,350 BTC but its maximum supply is 21 million BTC.
Since there is no limit to the amount of coins that can be mined, Coinmarketcap left blank these indicators in the “Fully Diluted Market Cap” section.
Volume 24H
You can see how much of a particular cryptocurrency has traded over the past 24 hours by looking at the index. The reports of numerous exchanges are calculated to arrive at this figure.
Circulating Supply
CoinMarketCap verifies circulating supply through communication with the project. The project managers are questioned by the CMC team regarding specifics such as first distribution, private allocation, and the number of tokens that are locked in addresses for marketing or other purposes.
CMC has also used a variety of additional evaluation techniques to provide the most accurate or approximate value.
Directions for beginners using CoinMarketCap
Instructions for accessing the homepage’s data
You can get to the CoinMarketCap homepage by going to coinmarketcap.com. You should focus on the following elements on the home page interface:
(1) Market overview, including the following indicators:
- Crypto: ryptocurrency projects available on the market, presently over two million.
- Exchange: Number of centralized exchanges (CEX) on the market
24h Vol: Trading volume of the entire market in the past 24h. - BTC dominate: Capitalization rate (dominance) of Bitcoin compared to the whole market.
- Gwei: Ethereum blockchain’s gas fees.
(2) The features of CoinMarketCap:
- Cryptocurrencies: Provides access to information such as a list of categories, newly added tokens, rankings of cryptocurrency projects, …
- Exchanges: Information about exchanges, including spot, DEX and derivatives.
Community: Sharing information related to cryptocurrency for the community. - Products: Finding CoinMarketCap products such as token exchange converter, blockchain explorer, Telegram bot, market event calendar,…
- Learn: Sharing knowledge related to the cryptocurrency market from basic to advanced.
(3): You can click More to see new tokens added by CoinMarketCap. A list of tokens whose prices have increased during the last 24 hours is also included in this section.
(4): List of top community accounts on CoinMarketCap.
(5): Fear & Greed Index, this is an index showing investor interest in the market.
(6): List of categories that are increasing in price.
(7): Ranking of coins by market capitalization from high to low.
Directions for viewing a project’s detailed information
You can either click directly on the project rankings or type the project name into the Search box to get more information about that project. Some fundamental details that you should focus on are:
(1): Project name and coin/token symbol (Here, the project is called Ethereum and the symbol is ETH).
(2): Coin/token price.
(3): Details about the total token supply, circulating supply, market capitalization, 24-hour volume, and fully diluted capitalization.
(4): Contract address of coin/token on blockchains.
(5): The project’s official website.
(6): Project’s social network accounts.
(7): Includes the following items:
- Chart: Price chart of the project.
- Market: Exchanges that list that coin/token.
- News: News related to the project.
- About: Project introduction.
- Analytics: Analytical data about the project.
Guidelines for making a project tracking list
You must first register for a CoinMarketCap account in order to be able to create a tracklist.
Step 1: At the CoinMarketCap homepage, choose Sign up (if you don’t have an account) or Log in (if you already have an account).
Step 2: To set up an account, enter your email address and password and choose Create an account. You can also create an account using your personal wallet, Google, Apple, or Binance account, among other methods.
Step 3: Once you have an account with CoinMarketCap, you can use the search bar or the project rankings to seek out the project that interests you.
Step 4: Click Watchlist to see all the projects you have added and make it easy and quick for you to keep track of them. Furthermore, two sections New Asset and Customize allow you to add new tokens or modify the metrics you need to monitor.
Conclusion
Above is Betomon’s comprehensive guide to using Coinmarketcap to track cryptocurrency projects as well as an overview of the market for beginners. Hopefully this article will be useful for those new to the market. Wishing you successful investments.
>>> Frequently asked Questions about CoinMarketCap
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