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Words and terminology are sometimes created to better understand a particular world. Cryptocurrency created a whole new financial world and with it came a number of terms like ‘market cap.’

The important thing is not to let the mystery of these words intimidate investors, especially newcomers. The market cap refers to the amount of Fiat monies supporting a cryptocurrency. Remember that fiat money comes in many forms like GBP or USD to name a few worth knowing.

It is easy to get fixated on the price of a single coin, especially as a newcomer. The following are two factors that are sometimes overlooked by investors but are pretty important.

Paying Attention to the Market Cap

Too often, a person will attempt to convince investors that a coin can reach a specified amount without taking into account how vital the market cap can be.

Say a coin was worth $2,000 and its coin supply stood at 16.4 million. Then, its supply was spiked up to 164 million. This means that the price of the coin is going to drop to $200, which would be a real shame.

Investors are sometimes enticed by the price of the coin and its potential for growth without detailing the cryptocurrency market …

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