Today we review HitBTC.com for you. What is HitBTC? How does it work? What do you get? Is it for you or should you look at other alternatives instead? This is just a few of the many questions this short review helps you answer!

Name of the Company: HitBTC

Official Website URL: https://hitbtc.com/

Owner: HIT Solutions Limited

Overall rating: (3.2 / 5)

Recommended? : Not recommended

P.S.

Learn about my #1 recommended Bitcoin exchange on this page

Or,

** Learn about my #1 recommended Bitcoin IRA solution on this page here

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Today we answer the question “What is Cryptocurrency Market Capitalization?” The term capitalization is not one that is new to most investors. They will always consider this metric before investing in a particular asset.
When we talk about the cryptocurrency market capitalization, we are simply referring to a metric that is used to determine the real value of the underlying cryptocurrency.

Whereas most people think that the price of given crypto represents its true value, there are other facts that need to be considered before they can even think of making an investment move.

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P.S.

(Other resources to read):

1: Learn how to Avoid ALL Cryptocurrency Scams

2: Learn how to invest in Bitcoin with your Retirement account

3: Learn about the safest (FULLY insured) way to store Bitcoin

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Thing is that prices are bound to be erratic. One day a commodity that costs $10 will be priced at $17. Does this mean that you will get a different experience paying $17 for this commodity? Let us take the example of an energy drink. Paying $10 or $17 will not give you a different experience, and the only truth of the matter is that you end up spending $7 more in one scenario.

This is the reason it is wise for anyone thinking about getting into cryptocurrency investment to consider the real value of the cryptos. As you are aware, the price of most altcoins, especially Bitcoin, is very erratic. The prices fall and rise in terms of thousands and dollars. Anyone who is not aware of the concept of market capitalization can easily be discouraged or encouraged by the trends and end up making a move that they regret later.

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Calculating cryptocurrency market capitalization

Most stock analysts rely on this metric known as market capitalization to determine whether it is a wise decision to invest in a particular company’s stocks. It is no different for cryptocurrency investors. Whereas stocks investors determine the market cap of a company by multiplying the price of a single share with that of the total number of shares available, cryptocurrency investors determine the market cap of a given coin by multiplying the price of a given coin by the number of coins that are circulating in the market.

The market capitalization of a company= Price of one share X Number of shares available
The market capitalization of a crypto= Price of a crypto X Number of cryptos available on the market

Let us take for instance, a certain coin called “T-Coin” has 2500 coins in circulation, and every single coin is priced at $7. The market capitalization of T-coin is calculated as follows:

–    Market cap= Price of crypto x Number of cryptos available on the market
–    Market cap of T-coin = $7x 2500
–    $17500

We can also assume that there is another crypto or altcoin called “S-coin”. There are 1000 S-coins that are in circulation. Every s-coin is priced at $16. The market capitalization of S-coin is calculated as follows:

–    Market cap= Price of crypto x Number of cryptos available on the market
–    Market cap of S-coin= $16 x 1000
–    $16000

As you can see, despite the price of the S-coin being higher than that of T-coin, the overall value of T-coin is higher than that of S-coin. This is the reason why most investors will forego investing in a given company’s assets and invest in another’s.
The market cap is, therefore, a more solid measure of a company’s worth in comparison to the price of the individual tokens in its name.

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Breaking down this information 

By now, I know you are very eager to find out why we are even picking on this metric. “Why is it this important?” you might ask. To that effect, keep following through and you will get a better understanding as to why market capitalization is that crucial.
For starters, market capitalization is a true measure of the risk that every investor is dealing with when they chose to invest in a particular cryptocurrency. Risk as a characteristic of any asset plays a huge role in the determination of its viability. There are investors who are attracted to high-risk assets, others are attracted to medium risk assets and others cannot deal with assets that are not low risk.

The same idea is applied to the market capitalization of cryptocurrencies, where we have Large-cap cryptos, mid-cap cryptos, and small-cap cryptos. What does each mean? Let us dive straight into that:

–    Large-cap cryptos are essentially those that have a very big market capitalization and are due to this termed as a safe investment. On the overall, all firms that have a market cap that is bigger than $10 billion are perceived as large-cap firms. As of now, the only crypto companies that would fit into this category are Bitcoin, Ripple, and Ethereum.

–    Mid-cap cryptos, as the name suggests, have a market cap that is smaller, but they bear more risk in comparison to the large-cap cryptocurrencies. All cryptocurrencies that have a market cap that lies between $1 billion and $10 billion are considered to be mid-cap.
–    Small-cap cryptocurrencies are those that have the smallest market cap in the pool. They also bear the largest risk. Any company that has a market cap of less than $1 billion is small-cap.

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What does this tell you? 

This is essentially a good approach to determine the risk vs reward profile of the asset you choose.

Currently, Bitcoin has the largest market capitalization. There now. This number changes after an estimated 10 minutes, whereupon new blocks are mined. As of October 25, 2019, the price of 1BTC is $7466.48.  The market cap of Bitcoin can, therefore, be calculated as follows:

–    Market cap= Price of coin x Number of coins in the market
–    Bitcoin market cap= $7466.48 x 17, 991, 125
–    $134,321,739,250.

If you look at the small-cap cryptos that are available in the market, their market capitalization is around 2000 times less than that of Bitcoin.

Now, as much as you may buy the small-cap coins at a lower price than the large-cap ones, the value of your investment is much less than what you would get if you purchased the large-cap cryptos.

One thing to note, however, is that the small-cap cryptos have a greater potential to grow. If you do not have the financial capacity to invest in Bitcoin, you can come up with a combination of small-cap cryptos whose value will be bigger than or equal to that of Bitcoin.

We can expound on this further by looking at the characteristics borne by large-cap, mid-cap and small-cap cryptos.

Large-cap cryptos 

–    These cryptos are not likely to experience major growth
–    Generally considered a safe investment
–    Perceived as the lesser volatile
–    Even when you are making major gains, the investment may still be perceived as having conservative growth.

Mid-cap cryptos 

–    These cryptos have a higher growth potential than that of large-cap cryptos.
–    They carry more risks than large-cap cryptos do.
–    Their growth potential arises from the fact that they are still experiencing an increase in utility.
–    They are not close to experiencing their full potential.

Small-cap cryptos

–    These ones have the highest growth potential.
–    Their value may also go down to a value that is extremely low.
–    They, to a great extent, bear the potential to give you the highest returns.

As of now, I hope you have seen why it is crucial to come up with the right combination of all these alt-coins. You can decide to select coins from each of the three categories or to make your own combinations.

You can, for instance, decide to combine small-cap and medium-cap, medium-cap and large-cap, or large-cap and small-cap. At the end of the day, your main focus should be to get as much value as possible.

This way, whenever the market forces align and the prices begin rising, you can get maximum returns on your investment.

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Point of emphasis: choosing the right combination of cryptos

As we have already seen, there are three classes of cryptos, based on their market capitalization. The small-cap, mid-cap, and large-cap cryptos may not experience the same rate of growth. You may actually find that the cryptos you choose may experience different price trajectories within the same period. This, therefore, means that you have no option but to diversify your cryptos.

With a well-diversified portfolio, you will have reduced your risks significantly, and you will be in a position to experience the best of what all crypto worlds have to offer.

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Watch out for Market manipulation

Another term that you will also hear a lot when the subject of market capitalization is brought up is market manipulation. Essentially, the small-cap companies usually try to manipulate the prices of their assets more readily than the large-cap companies do.

There are bad actors who will try to come in and control a significant quantity of cryptos to force the movement of prices in a certain direction.

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What does market capitalization not reveal? 

We have established that relying on the information about the market capitalization of a certain cryptocurrency to determine if you will invest in it or not is a better approach in comparison to relying on the price.

One thing that you should note, however, is that the market capitalization does not reveal any information related to the direction that the prices of a certain cryptocurrency would take in the future. Even the large-cap cryptos are not stable enough for the investment analysts to determine the direction their prices will take based on their current market capitalization alone.
You also do not get any information about the nature of the supply of the cryptocurrency involved.

With some cryptos, as you will learn, the market capitalization factors the total supply of the coins in the market, while in others; there is an infinite supply of the coins. In the case where the total supply of the coins is revealed, it is easy for investors to keep track of the value of their investment based on price variations only. This is because the supply of the coins remains fixed.

It is clear at this point that market capitalization on its own is not sufficient to tell you whether to invest in certain crypto or not.
The truth is that it does not reveal the direction that the cryptos will take and whether there will be instant or slow growth.

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What next for you?

Having understood that the cryptocurrency market capitalization is simply a reflection of the number of coins circulating in the market, you should be more open to relying on other factors to determine your readiness to invest in a given crypto asset.
The three main cryptos, Bitcoin, Ethereum and Ripple have been experiencing significant price changes in the last half-decade. Their market capitalization has due to this reason increased significantly.

With Bitcoin, for instance, the total number of coins in supply is controlled. If you are to determine whether to invest in Bitcoin or not based on the price fluctuations alone, you would be missing out on the bigger picture. The price alone is sufficient to cause pandemonium and confusion, as investors try to cash put their Bitcoin to avoid making losses.

Today, the market capitalization of Bitcoin is way higher than that of most economic giants that were founded way before Satoshi created this crypto. Nevertheless, just like with stocks, the growth in the market cap over a given period is accompanied by the growth in the value of the overall value of the investors’ assets. This is usually regardless of the fluctuations experienced in the prices of the underlying company’s stocks.

The truth is that an analysis of the market cap of such a cryptocurrency is a quick way to determine the value of the coin. If the market cap is excellent, then the same characteristic is borne by the coin. Weighing the market capitalization may not be the only metric that you can consider to make your investment decision, but is most certainly one that tells volumes about the asset in question.

An analysis of the market cap of cryptos on an annual basis will help you see that their overall value is growing, and this is a better approach to follow instead of merely looking at the price fluctuations.

(Below you got some of our most important resources):

1: Learn how to Avoid ALL Cryptocurrency Scams

2: Learn how to invest in Bitcoin with your Retirement account

3: Learn about the safest (FULLY insured) way to store Bitcoin

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I hope you found this article to be helpful and that you now have a better understanding of what Cryptocurrency Market Capitalization is. Please, if you got any questions then leave them below as I would be more than happy to answer them!

I wish you success!

Michael,

founder of Gold Retired

In this article we will discuss Bitcoin investing. Is Bitcoin a safe investment? Investing is like a game, and every investor is in it to win, right? No one wants to splash their very hard-earned money into assets and financial instruments that will never materialize.

To a significant number of people it is never about the amount of investment income that they can expect to gain within the set investment horizon, but about the surety of the returns. It is all about the certainty that one will not lose their money by investing it in a given asset.

Investors have invested their money through numerous financial instruments, and due to the accumulated historical data, it has become easier for the public to identify which one has a better risk profile.

Ideologies have actually been formed about which asset combinations are the best to rely on to grow ones’ wealth. Many investment gurus have actually profited a great deal from offering advice on how to go about such investments.
In 2009, Satoshi created the first publicly and most renowned cryptocurrency known as Bitcoin. There was no historical data to back up the legitimacy of this new currency, only new ideologies about how it works and why it is safe.

Just like any new product in the market, the uptake and acceptance of Bitcoin were initially low but the trend changed with time.
The introduction of other cryptos such as Ethereum, Ripple and Lite coin further strengthened Bitcoin’s position in the market. Everyone who is keen enough on the pricing of Bitcoin has witnessed the rise of its price from less than a dollar to a price higher than $12,000.

The rise in the price of this cryptocurrency has not been a smooth and upward trajectory. In fact, for more than 300 times, some investment analysts have proclaimed the death of this currency and investment instrument.

One decade later, and Bitcoin is still alive and gaining more interest from the public. Now, one of the major concerns you would hold is whether Bitcoin is actually a safe investment.

Before I move into breaking down the main concepts revolving around its safety, I would like to retaliate the fact that in 2009, the value of Bitcoin was at $0.0009. As an investor who believes in the numbers, think about how much money you would be looking at if you had purchased this cryptocurrency back then.

P.S.

==> Learn about the #1 Safest (and FULLY Insured Bitcoin Investing Method)

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Understanding Bitcoin – an Investment asset 

When Satoshi Nakamoto created Bitcoin, his intention was to bring a digital currency to introduce a decentralized currency that would be used to purchase goods and to pay for services. Simply put, he wanted Bitcoin to be digital proof of any transaction, without needing any form of assistance from a third party. With all pre-existing methods of digital currency, it is necessary for the bank or credit card company to validate your transaction.

Like any other currency, however, Bitcoin was and is still subject to price fluctuations. It is actually one of the reasons that led to investment analysts claiming that Bitcoin will eventually not stand the test of time.

As much as the prices of Bitcoin are erratic and very erratic for that matter, it cannot be sidelined as not being a safe investment. As I will show you later in this article, investing in this cryptocurrency, regardless of the quantity, could be the best decision you ever made.

You can agree with me that an asset that has been profitable for more than 85% of the time it has been in the hands of investors is actually one that is stable enough.

I know most people get discouraged from investing in this digital asset due to these price fluctuations, and the tension it creates, but let us crunch the numbers and see how much we stand to gain

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Success in the numbers

As we earlier on agreed, the numbers do all the talking when it comes to investments. It is not prudent to invest in any asset out of pure speculation. Whereas you may end up succeeding out of sheer luck, this approach is flawed at best. It actually one of the many tactics that cons apply. They will come in and tell you that a particular commodity will be worth more a very large amount of money in the future, and use all types of tricks to ensure that you do not get a glimpse of the numbers.

In October 2010, the price of Bitcoin was $0.15. Let us assume that a passive investor decided to put aside only $300 to purchase this crypto.

He or she would have purchased an equivalent of 2000 BTC.

If the same investor decided to cash out the Bitcoin any time in 2019, he or she would have earned any amount between $12,000,000 and $24,000,000.

Many people understood that Bitcoin was here to stay and was brave enough to purchase this crypto.

One decade later, there are those who are still waiting for a sign that this is the right way to go, which is quite understandable.

My hope is that you are not waiting to read such a review in 2029, wondering why you did not take a bold step to invest in Bitcoin, based on the amount of money it will worth at that time.

Everything in the current world is going digital and paperless. Just as some paper currencies are stronger than others are, there are also digital currencies that will dominate the paperless currency era. Which is why you should purchase Bitcoin early enough, for you to be in possession of the most valuable digital currency.

Further to that, the digital framework, which cryptos operate in, has been widely adopted.

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The widespread adoption of blockchain technology

Did you know that there are more than 1600 digital currencies in the world? I can assure you that most people only know that Bitcoin is the only cryptocurrency that is operational. The attention it has received from the media has made people judge the entire cryptocurrency ecosystem based on the trends observed in the uptake and pricing of Bitcoin. What most people do not know is that Bitcoin, along with those other digital currencies, is based on the technology known as the blockchain.

This technology is gaining strength by the day, with most organizations coming up with their in-house distributed ledger systems that work just like how Bitcoin payment works.

This should tell you that the world is gradually opening up to the use of digital currencies, a trend that is actually expected not to slow down. It also shows that the concept of cryptocurrencies and blockchain will finally become an integral part of the business in the near future.

Next, we can look at the outlook of the investment environment.

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The safe investment environment 

Another major reason why people have shied away from Bitcoin is the many scams that had previously hit the crypto ecosystem. Con artists took advantage of the fact that most people were not conversant with the cryptocurrency concept and conned a significant number of people.

This has led to the introduction of new and tighter regulations, which shut out all crypto scammers. The regulations, coupled up with better access to the wealth of information about cryptos has helped suppress the fear experienced previously.

With the understanding that the regulations being put in place will take care of scammers, and blockchain technology through which the use of cryptos is dependent on is being adopted at a very fast rate, your next big issue would be about the safest approach to invest Bitcoin.

So far, there are two main safe approaches to investing Bitcoin: Hodling and Trading in Bitcoin.

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“Hodling”

Plain and simple, holding means holding Bitcoin (recommended to do in the safest way with an OFF-line wallet)

If you have not encountered the term before, hodling means the buying and holding of currency with the hope that its value appreciates.  The practice of buying and holding assets is not new to the investment arena, lest you wonder whether hodling has a new approach in this case.

Like with the other assets and commodities, all you have to do is to purchase the Bitcoin, store them safely and wait for a time that you can cash them out at will. Those who have already tried this approach have established several rules that you should follow in order to ensure that you do not lose your capital. These include:

–    Regardless of who it is that you are seeking advice from, do not invest without doing your own research about Bitcoin to determine whether it meets your desired investment specifications.
–    Never invest an amount of money that you are not willing to lose (this is a universal rule that applies to all types of investments). If you decide to hodl Bitcoin, you should not exempt yourself from this rule.
–    Only purchase Bitcoin from a reputable and well-known source.
–    Use the Dollar Cost Averaging approach – with this approach, all you are required to do is to buy your Bitcoin in several tranches distributed over a certain period. You can, for instance, purchase your cryptos in small quantities every week throughout the year. The average of the final price of your Bitcoin ends up being inclusive of the one-year course.

Withholding, investors are required to store their Bitcoin through the cold storage approach, which is hacker-proof. The cold storage wallet provided by companies such as Regal Wallet can securely hold your Bitcoin for as long as you want. What is more? Multifactor authentication is required to access the Bitcoin stored in the wallet, making it harder for hackers to access your digital currency.

Holding can work perfectly for you if you are a long-term investor. It is also a very sound investment strategy for those who do not have the time to keep on checking up on their investment, due to work commitments.

If you have all the time to follow up on the growth of your investment, and you want to have the adrenaline rush as you make the money, then trading in Bitcoin is the way to go.

==> Learn about our #1 Recommended (and #1 rated) Bitcoin “hodl” Investing solution

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Trading in Bitcoin

Those of you who have had their experience with Forex trading can relate to this investment approach. As opposed to buying Bitcoin and holding it over the long term, you can participate in the active purchase and sales of these cryptos.

The logic is to buy the Bitcoin at a low price and sell them as soon as the prices hit your desired high price. All you have to do is to ensure that you are relying on a reputable and reliable trading platform. It is also advisable to only rely on this approach if you have the time to study the cryptos market to identify the trends, else large players will capitalize on your ignorance to eat into your capital as fast as they can. That said, however, if you have already traded in other currencies, it is highly likely that you will have an easy time trading in Bitcoin.

At this juncture, I am sure you have a clear glimpse of the outlook of how people go about investing in Bitcoin.  If you are still having doubts about it, then we can think about the future of Bitcoin

==> Learn about our #1 Recommended (and rated) Bitcoin trading platform Binance

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Cryptocurrencies: A very promising future asset 

Promising? You might ask. Well, here is the thing about volatile assets such as cryptos: your chances of success are high if you focus on a long-term investment horizon.

Most investors who focus on the short-term horizon end up being frustrated due to the pandemonium caused by the regular highs and lows in the prices of Bitcoin.

In the last month of 2017, for instance, the value of Bitcoin was at a strong $20,000. By the end of 2018, the price of this crypto was $3000. With this kind of movement, you are likely to get frustrated and cash out your Bitcoin before it is “too late”.

In another scenario, the price of Bitcoin on 20 November 2015 was $327.  As of 24 October 2019, the value of one BTC is $7462.  If you had purchased your cryptos in 2015 and held on to your investment despite the shake-ups in 2018, you would be raking in massive profits today.

If you had purchased the cryptos in 2009, then your life would have changed for the better.

Bottom line, Bitcoin is a safe investment, which if bought and held over the long-term can benefit the investor massively. The new regulations put in place have done away with scammers, and the cold storage approach has kept the hackers at bay. Now all you have to do is to follow the procedures and tips I have outlined and then wait for the value of your Bitcoin to grow.

==> Learn about the #1 Safest Wallet

(and FULLY Insured Bitcoin Investing Method)

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I hope you found this article helpful and that you know have a better understanding of if Bitcoin is a safe investment? As of now, the new question I can pose to you is: How many Bitcoins will you be worth one decade after reading this article? Please share your comments and questions below as I will be more than happy to answer!

I wish you success!

Michael, founder of Gold Retired