Market Capitalization

Beginner

Market capitalization is a measure of the size and value of a company, or in the case of cryptocurrency, a digital asset. It is calculated by multiplying the total number of a company's outstanding shares of stock by the current market price of one share.
 
In the context of cryptocurrency trading, market capitalization is used to determine the relative size of different digital assets. The higher the market capitalization, the more valuable the asset is considered to be. Market capitalization can be used to compare the value of different cryptocurrencies, as well as to track the overall growth and change in the cryptocurrency market.
 
Market capitalization is important in cryptocurrency trading because it can provide insight into the current and future value of a digital asset, and can be used to help investors make informed decisions about their investments. It can also be used to determine the relative strength and popularity of different cryptocurrencies, and to identify trends and changes in the market.