Coinmarket is an increasingly popular website where you can follow the movement of individual portfolios. What exactly is coinmarket and why is it so popular? Coinmarket generally uses pairs of currencies that are widely traded on the Forex market, for example, the USD/JPY or the GBP/USD. This gives you the opportunity to track the movements of individual portfolios across multiple exchanges.
Coinmarket also tracks the value of individual coins, both directly and indirectly. The two types of measurement are called market cap and market depth. Basically, the market cap is the standard way of gauging the value of all virtual currencies by their market share in a particular exchange. It’s calculated by multiplied by the daily exchange rate against the daily supply (issued supply) multiplied by the number of outstanding shares. On the other hand, market depth measures the total of all coins in circulation, both in circulation and on hand.
Let’s start with the latter, because market caps and market depth are directly related. The higher the market cap, the more valuable any given virtual currency is. The lower the market cap, the less valuable it is. That’s the reason why there’s always a flood of new, lower quality coins flooding onto the market at some point, since the supply is low and the demand is high.
So what’s going on with the market depth? This is expressed as the difference between the total number of shares in circulation and the total number of coins in circulation. Usually, the left side of the chart has the most bullish trends, as more investors are pushing these currencies up, while the right side of the chart has more bearish trends.
Now let’s look at how we can exploit the bullish and bearish trends to make money on the ethereal network. When you get into the bearish trades, you’re buying up coins that have already reached their sell-by date. This makes you money. You don’t have to hold on to these coins forever, as they’ll lose their value anyway, but you can sell them for a profit when the prices recover.
On the other hand, when you enter the bullish trades, you’re selling out those currencies that have reached their buy-by dates. That makes you money by shedding your unwanted stock. Again, you don’t have to hold onto these coins forever, but you should sell them before the price recovers to its real value. There’s no better way to position yourself than this, as there is a large pool of cheap, quality coins out there that will always be profitable. What you have to do is to look at the market cap of all of the hottest currencies, both in the bullish and bearish terms, and then position yourself accordingly. You don’t want to become a day trader, you want to hold onto the big profits for as long as possible.