What is Coinmarketcap? 3 Important Things to Know About Coinmarketcap.
What is Coinmarketcap? How to register a CoinMarketCap account? Guide to watch CoinMarketCap and 3 important information you must know.
If you are a newcomer to the Crypto market and ask someone where to look for information about cryptocurrencies, about 80% of the answer will probably be CoinMarketCap. So what is CoinMarketCap? How to view information on CoinMarketCap? Why is CoinMarketCap used by so many people? All will be answered right in this article!
What is Coinmarketcap?
Coinmarketcap is a website specializing in aggregating and continuously updating basic information about cryptocurrencies on the cryptocurrency market such as exchange rate, capitalization, coin/token type, project contact information, etc. Currently, CoinMarketCap is considered the most reputable information provider in the market.
Besides, CoinMarketCap is also very interested in users when continuously developing a lot of useful features and events such as: event calendar, watchlist, portfolio, CoinMarketCap Earn,...
Why do you need to use Coinmarketcap?
Whether you are a newbie or an old person, you still need to constantly update the situation of the token coin you invest in, especially the fluctuations in price , trading volume in the last 24 hours and the value. capitalization of the cryptocurrency market.
And if you dig deeper into the information on Coinmarketcap, you will have an overview and quite complete about the market situation. That is also what I will talk about in the next parts of this article.
The time I started writing this article was March 2018, more than 2 years ago. Currently, in addition to Coinmarketcap, we still have another option to check similar information that is Coingecko.
How to register a CoinMarketCap account
If you only need to see prices and basic information, you may not need an account. But if you want to use more advanced features, a CoinMarketCap account is required. Here's how to create an account:
Step 1: Visit coinmarketcap.com , select Sign Up in the right corner of the screen.
Step 2: The screen displays asking to enter Email and Password to create an account. You enter all the information, then click Create an account.
After that, an Email will be sent to you to confirm your account activation, you will access the Email and activate the account again.
Instructions on how to view CoinMarketCap
Information on the homepage
Below I will explain in detail each category and information on CoinMarketCap in order of numbers on the picture:
(1) Cryptos: Total amount of coins & tokens being listed on CoinMarketCap. At the time of writing, the number is 10,947 projects.
(2) Exchanges: The total number of cryptocurrency exchanges on the market, including centralized exchanges ( CEX ) and decentralized exchanges (DEX).
(3) Market Cap: Short for Market Capitalization - Market Cap. This is the total market capitalization of the entire crypto market to date.
(4) 24h Vol: Short for 24 hours Volume - Cryptocurrency trading volume in the last 24 hours.
(5) Dominance: Coin/Token dominance index, here usually shows 2 popular coins, Bitcoin (BTC) and Ethereum (ETH).
(6) ETH Gas: The total gas fee used to mine 1 ETH on the Ethereum blockchain.
(7) Cryptocurrency: Option to display general information of cryptocurrencies, including:
- Ranking: Ranking of the capitalization of cryptocurrencies.
- Recently Added: Recently added cryptocurrencies.
- Legal Tender Country: (New Section) Countries that accept crypto tenders as legal.
- Global Chart: Includes Total Market Cap, Altcoin Cap and Bitcoin Dominance Index Chart (BTC Dominace).
- Fiats/Companies Ranking: Comparison between Bitcoin and the total capitalization of the world's largest fiat currencies.
- Spotlight & Gainers/Losers: The most searched projects, the biggest gains and the most losses in the given time frame.
- Historical Snapshot: The history of coin movements (from 2013 to present).
(8) Exchanges: Statistics of exchanges, including:
- Spot: Spot trading.
- Derivatives: Trading Derivatives.
- DEX: Decentralized exchange.
- Where to Buy: Where to buy crypto assets.
(9) NFT: Summary of projects in the field of NFT.
(10) & (16) Portfolio: Track your portfolio, profit and loss.
(11) & (15) Watchlist: A watchlist of cryptocurrencies for users. Users can add tokens of interest to their Watchlist for easy updates.
(12) Calendars: Schedule of market events:
- ICO Calendar: Token release schedule on the exchange.
- Airdrop project roadmap (reward) for users.
- The general calendar of events across the cryptocurrency market.
(13) Product: The products integrated on CoinMarketCap, recently the Swap feature of Uniswap.
(14) Learn: All general knowledge about cryptocurrencies, how to make money and market updates.
(17) Price: Token price.
(18) 24h %: Price movement in 24 hours.
(19) 7d %: Price movement over 7 days.
(20) Market Cap: The capitalization of each cryptocurrency by ranking from high to low.
(21) Volume 24h: Trading volume in 24 hours of cryptocurrencies.
(22) Circulating Supply: The total circulating supply in the market.
(23) Last 7 Days: Waveform chart showing the volatility over 7 days.
Information of Coin/Token
Area (1) : Basic information about Coin:
- The name of the cryptocurrency ( Bitcoin ) and the symbol ( BTC ).
- Ranked by market capitalization.
- The number of Watchlists that the cryptocurrency is added to the watchlist.
Area (2) : Coin/Token price and volatility:
- Prices are displayed according to the most recent time.
- Ratio increase/decrease in %.
- The highest and lowest prices for a given period of time optional: 24 hours, 1 month, 1 year.
Area (3) : Exchanges that sell that Coin/Token, Coin/Token related events and programs.
Area (4) : General information:
- Project website.
- Explorer: Information explorer, including many information explorers about nodes, transactions,...
- Community: Social networking communities like Reddit, Bitcointalk.ogn.
- Source Code: See the coin's background code overview on the archive pages.
- White Paper: White Paper Document.
- Market Cap: Capitalization of the current Coin/Token.
- Fully Diluted Market Cap: Fully Diluted Valuation, which means the total capitalization value when all Tokens are unlocked.
- Volume 24h: Trading volume in 24 hours of that Coin/Token.
- Circulating Supply: Total number of units of that Coin/Token being mined and circulated in the market.
- Max Supply: The maximum total supply of that Coin/Token.
- Overview: Overview of the price chart.
- Market: Exchanges that list that coin/token.
- Historical data: Historical data .
- Holders: Statistics of addresses owning Coin/Token and balance.
- Wallets: Wallets that support storage.
- News: Related news.
- Socials: Statistics of social network activity.
- Rating: Evaluation through a 3rd party on the basic factors.
- Analysis: On-chain data analysis.
- Price Estimate: Estimate the reference price.
3 important information on CoinMarketCap you must know
Most people go to the Coinmarketcap site just to see the price fluctuate up and down mainly, but to use Coinmarketcap most effectively, you should be interested in the following 3 main information: Total Market Cap, Volume 24h, BTC Dominance.
Total Market Cap
Total Market Cap is the total capitalization of the cryptocurrency market. This shows you the current size of the entire cryptocurrency market.
On January 7, 2018 the total cryptocurrency market capitalization peaked at over $800 billion. As of now on July 19, 2021, the market capitalization is reaching more than 1.269 billion USD.
However, if you try to compare that number with other markets such as Gold, forex, Stocks or Dot com Bubbles, etc., you will be able to see that this market is still too small and still has a lot of room to go. develop in the future.
How to calculate the capitalization of 1 coin/token:
Market Cap = Price x Circulating Supply
- Market Cap: Market capitalization.
- Price: Current price.
- Circulating Supply: Total number of coins/tokens circulating in the market.
Now, I want to calculate the capitalization of Chainlink (LINK) and the current price for 1 LINK is $15.52, the total number of LINKs circulating in the market is 440,009,553.92 LINKs. We will calculate the current capitalization of LINK: $15.52 * 440,009,553.92 = $6,828,948,276.84 (approximately $7 billion).
The importance of market capitalization (Market Cap)
The capitalization of a coin is very important, because it tells you the total amount invested in that coin at the present time. And this is a factor that may affect your investment decision in that coin.
I will give an example for you to understand:
Coin LINK has a market capitalization of nearly 7 billion USD. To LINK x2 it takes another 7 billion USD. Now you will need to answer the question: Is this possible?
24h Vol tells you the total trading volume of the entire cryptocurrency market in a day and is calculated in USD. At the same time, when looking at the trading volume of any coin, you will also know whether the liquidity of that coin is high or low.
Example: Chromia's Trading Volume (CHR) is $338,743,830, which means $338M worth of CHR has been traded in the last 24 hours.
BTC Dominance (BTC.D) is the percentage of capitalization that Bitcoin accounts for over the total capitalization of the entire Cryptocurrency market. For example, BTC Dominance is at 60%, this can be interpreted as BTC capitalization is 60% of total market cap and Altcoins is 40% of total market cap.
BTC.D shows the advantage and influence of Bitcoin over the whole market, and it also tells you the flow of market capitalization, specifically:
- If this BTC.D is increasing, it means that the money flow from Altcoins is being sucked back to BTC, Altcoin investors need to be careful, because at this time, Altcoin price is likely to decrease.
- On the contrary, if this index falls, it is very likely that we will see an Altcoin season - a time when Altcoins increase in price very strongly.
Let me give you an example for your understanding:
The BTC Dominance Index is at 48%. Suppose, the next day the capitalization remains unchanged, but the BTC capitalization rate drops to 46%. That tells you that capitalization is moving from BTC to Altcoins.
Indeed, BTC Dominance is an extremely important indicator. But I see a lot of people don't pay much attention to this indicator.
I had an overview article about what BTC Dominance is, and shared about how to read & how to make profits based on Bitcoin Dominance, you should refer to it to better understand this indicator!
Some of the latest CoinMarketCap updates
An extremely interesting feature has just been updated by CoinMarketCap, that users can Swap tokens right on the CoinMarketCap homepage.
This is very convenient for users, when they have just browsed an interesting index that can bring instant profits, they can go straight to the Swap feature to buy that token immediately.
At the beginning of 2021, while the community was excited about the Parachain auction on Polkadot, Polkadot postponed the mainnet. This caused many projects to postpone their Parachain auction schedule.
But recently, Kusama - the "testnet" version of Polkadot has started again with the Parachain auction on Kusama, there is a high probability that the auction on Polkadot will also happen in the near future. So CoinMarketCap has updated a place for users to easily follow this auction process.
Legal Tender Countries
The most famous incident in June 2021 is probably the fact that El Savador is officially the first country to allow payments in BTC.
If you want to keep track of which countries recognize BTC, the recently updated Legal Tender Countries section on CoinMarketCap is definitely a place not to be missed.
In this section, in addition to the information that the country officially recognizes Crypto, there is also a prediction of which country will make Crypto legal next, you can show your prediction through 3 votes.
Learn Crypto Event - Earn Crypto
Learn Crypto - Earn Crypto is an interesting event on CoinMarketCap, through doing the required tasks, users will have the opportunity to receive rewards as coins/tokens.
To see the projects inside this event, you can choose " Earn " as shown in the picture, or visit: https://coinmarketcap.com/earn/
Tasks in this event are usually watching videos and answering mini tests/quizs about pre-provided project information. The more correct answers, the greater the chance of participating in the prize.
Learn Crypto event - Earn Crypto makes it possible for users to earn money by simple tasks. You can watch more video tutorials to participate in this event below:
However, to participate in this simple money making event, you need to have 1 CoinMarketCap account and 1 KYC Binance account. If you are interested and want to participate in earning rewards but do not have a Binance account, see the detailed instructions on how to use Binance and register for an account now!
So, I introduced you to what CoinMarketCap is and all the necessary information about this website.
Oct 08, 2022