Understanding Coinmarketcap - The Complete Beginner'S Guide
The cryptocurrency platform has become a massive market since the rise of Bitcoin and this has led to the creation of CoinMarketCap. As the new coins pour in annually and the crypto market remains as hectic and unpredictable as ever, the need for a system that helps provide instant price listings and other vital information about every cryptocurrency has greatly increased in the past decade.
CoinMarketCap has become the world's largest crypto price tracker, since its inception in 2013 it has quickly grown into one of the best-known brands in the rapidly advancing crypto space. Here you're going to find out all you need to know about the platform how it works and its function in the crypto world, so let's get into it...
What is Coinmarketcap?
CoinMarketCap is a website/platform that is utilized as a tracking tool for observing the capitalization of all cryptocurrencies. The site allows you to compare both cryptocurrencies and their trading prices by providing you all the information required to make an informed trading decision.
CoinMarketCap does not provide financial or investment advice neither does it offer guidance on the timing of sales or purchases, the platform made its name solely by providing up-to-date and consistently good quality-price data. It is an aggregation and data ranking site which has provided space for all types of cryptocurrencies including DeFi projects and derivatives.
How Does It Work?
CoinMarketCap collects and collates real-time information from several sources to deliver accurate price information on all crypto assets which are verified. It provides in-depth details ranging from price to market capitalization, trading volume, and circulating supplies from globally trusted exchanges, presenting the information in an unbiased, timely, and easy-to-interpret manner.
CoinMarketCap was an independent company for approximately 7 years before it was acquired by Binance - the world's largest digital asset exchange based on users and trading volume - in April 2020.
However, Binance has treated the company as a separate entity, with a reluctance to tarnish the undisputed reputation of the site, only using its extensive resources and information reserve to provide the platform with additional in-depth project data to reduce discrepancies between resources.
Major Features Of CoinMarketCap
There are four major features that CoinMarketCap offers which help you gain an understanding of the value of each crypto-asset, they are;
Market Cap: The market cap provides an overview of the value of an asset. It is the total of the entire number of coins in circulation compared to the market value.
Price: This indicates the exact value of a coin at a point in time, the average market price across exchanges. It's usually good trading practice to sell high and buy low.
Volume: Here you learn how each coin is currently performing, is it dipping? Is the volume unusually lower? These metrics can help you time your buys and sells, it is a measure of how many coins were traded in the past 24 hours.
Supply: The supply gives you an indication of how limited or abundant the current supply of od the coin is. This value multiplied by the price value is equivalent to the market cap.
How To Use Coinmarketcap
Here we will give you a breakdown of how to navigate the CoinMarketCap website and use its many features;
The first activity you can engage in after visiting the CoinMarketCap website is to take a look at the crypto-asset rankings on the homepage. Even as a new visitor to space, you won't be lost in the simplified interface.
Taking a look at individual crypto assets on the homepage, you will view several pieces of data about that specific asset, these are the crypto asset's market cap, 24-hour and 7-day change, price, volume, and circulating supply. There is also a small graph visualization so you can view a particular trajectory for the crypto assets over the past week, you can scroll down a very detailed and extensive list of the homepage to view all of the crypto assets available on the CoinMarketCap ranks.
Coin Details Pages
Here you learn more information about a chosen coin, you just have to click on it and you will view the coin details page. The "market pairs" tab is one of the most vital pieces of information on the details pages of CoinMarketCap, each market pair has its designated confidence indicator which helps you choose your preferred exchange to trade your crypto.
The confidence score is a reflection of the liquidity of an exchange, the higher the liquidity, the easier the crypto trade will be. Every coin's page has an on-chain analysis attached to it and it is hosted by IntoTheBlock.
Cryptocurrencies, DeFi, Derivatives, Yield Farming and Storage
There are several ways to visualize crypto-assets apart from on the homepage. CoinMarketCap offers the choice for you to only look at crypto-assets of a specific category and the most popular categories are located at the top of the page; DeFi, storage, yield farming, and storage. There are filter tabs on the right-hand side of the in case you want to search for something even more specific while still on the homepage.
CoinMarketCap has rankings of cryptocurrency exchanges instead of crypto assets rankings which are broken down into derivatives exchanges, spot exchange, and decentralized exchanges.
CoinMarketCap also has a watchlist feature that is associated with your CoinMarketCap account and lets you star cryptos. This helps you find your favorite assets easily whenever you need to check on how they are doing.
There you have it, all you need to know about CoinMarketCap. CoinMarketCap is currently the largest and most popular website that helps you keep track of the market capitalization of cryptocurrencies and also get an overview of the total appeal of the asset. It also offers the most popular index in the crypto world for all relevant financial metrics for crypto assets.
The prices on CoinMarketCap are all calculated by the volume-weighted average of the total prices from different exchanges, that is why it is important to monitor the circulating supply and not the total supply because the circulating supply is the only available parameter in the market.
BitForex is an exchange service platform that can be classified as one of the Top 20 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.
BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts, derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.