This is for those who are new to #Crypto currency trading.
Let's understand that what is mean by Maximum Supply in crypto?🧐
Maximum Supply:
Maximum supply represents the theoretical upper limit on the number of coins or tokens that can ever be created for a cryptocurrency. Some cryptocurrencies have a maximum supply equal to their total supply, while others may have mechanisms in place, such as mining rewards halving or burning tokens, to gradually reduce the circulating supply over time. Understanding the maximum supply helps investors assess long-term inflationary pressures on the cryptocurrency.
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This is for those who are new to #Crypto Trading.
Total Supply Concept:
Total supply refers to the maximum number of coins or tokens that will ever exist for a particular cryptocurrency. It provides insight into the potential for inflation or deflation of the cryptocurrency over time. Cryptocurrencies with a limited total supply, such as Bitcoin with its 21 million cap, may be more attractive to investors due to scarcity, potentially leading to price appreciation.
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This is for those who are new to the cryptocurrency field.
What is Market Capitalization?
Market capitalization (market cap) is calculated by multiplying the current price of a cryptocurrency by its total circulating supply. It provides an estimate of the total value of a cryptocurrency and helps investors gauge its relative size and importance in the market compared to other cryptocurrencies. Higher market capitalization generally indicates greater investor confidence and adoption.
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