Why Investing in Cryptocurrency brokering May Be a Smart Move

Coinmarket basics. What exactly is market trading and why is it calculated differently from other calculation methods? Market trading is calculated by dividing the market price by the present supply (also called circulating supply) of each particular Cryptocurrency in the marketplace. The circulating supply, also known as the circulating coins, include all US Dollars, Canadian dollars, British pounds, Singapore dollars and Eurozone currencies.


Now that we have an explanation of what coinmarket is and why it is different than other systems of pricing in the market, let us look at some examples. There are currently two major online sources for buying and selling Cryptocurrencies: the two top exchange houses, namely Binance and Forex. These two companies are currently the most popular among Cryptocurrency traders and there are many thousands of traders currently using them to trade. They are not only the largest of the two however; they are also the most widely used. Their popularity is largely attributed to the fact that they offer a simple and easy to use interface and they make money automatically and at a higher percentage rate than other, more complex systems.

Binance and Forex are not the only two providers of the coinmarket though. There are dozens of other smaller, lesser known exchange houses currently active on the cryptospace and each one of them have built up significant reputations and, in some cases, millions of investors. Because these smaller operators do not have nearly the same marketing budgets or the personnel that the larger companies have, they rely heavily on word of mouth advertising and they operate in a much more lean and mean fashion. Because of this they generally operate at a much less aggressive revenue figure and their profits margin is usually quite small. Their popularity means that almost every major currency trader is presently utilizing some form of a platform created by one of these smaller exchanges.

When you think about it, this fact becomes a little bit paradoxical. On one hand, the larger platforms generally command far greater profit margins than the smaller, oftentimes free and almost certainly scam free currencies. On the other hand, the smaller coins generally operate with much less overhead, in some cases none at all. The result is a platform which is very easy to use but offers a much lower return on investment than some of the more expensive and feature rich competitors. In many ways, this paradox seems to underline what made the entire altcoin phenomenon so attractive in the first place: the opportunity to get in on a low-cost but potentially high return venture without having to spend a fortune on development. The appeal of the Cryptocurrency Market was this ability to tap into a market which had previously been closed off and to offer a new, untapped source of wealth.

This brings us to the subject of market caps and why they are important. In the last decade, the two primary competitors for the leading position in the cryptosphere were Monero and Dash. While it is easy to assume that investors in Dash or even in other new currencies would be more interested in seeing their current market cap increase, the truth is that few if any would be ready to jump in just to ride the coattails of larger cap contenders. If you take a look at the actual numbers, you will see that the large cap currencies have always had a much higher market cap and, as a result, always saw a greater percentage of their current market share diluted amongst existing holders rather than take on new investments.

If you take a look at the historical data, then you will see that this pattern basically holds true across all of the cryptosystems. The Dash and Monero example above were created by an unknown person or group using an automated software program. This person then multiplied this small initial investment multiple times using relatively short term tools, then hid the original copies under the assumption that it would eventually be discovered. Eventually, someone working from inside the company noticed that the market cap had actually risen, implying that the person responsible had some kind of control over the Dash and Monero currencies.

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