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Instructor
we have several statical website that provide details about available list of cryptos (token and coins), looking at the famous ones like coinmarkecap, provides a list of more than 26,000cryptos while coingecko provides more than 9800cryptos, but the market capitilization is all 1.2+ trillions usd for today, whats your take in this contradiction?
Student
hello happy to be here
Instructor
you are welcome brother, lets have our opinions on this matter
Student
Can't wait for people to answer that, so I learn something there.
Student
you are welcome
Instructor
you are welcome to the forum
Instructor
welcome everyone lets familiarise ourselves in this matter
Student
reading your post, I think I quickly discovered something... the total market cap versus these other websites that list coins that have negligible percentage in relation to the total market cap
Instructor
Yes thats to me makes a lot of sense since the market cap is from the real market and listing coins in websites or platforms doesn't necessarily means all cryptos listed makes the market cap
Student
I think they are used to lure the unsuspecting victims to fall prey to the idea that a listed coin means good investment
Instructor
this is very important for people to understand, we can see out of the massive number of cryptos the reliable and stable investments are few despite being listed or being famous
Student
so in essence being famous or popular doesn't qualify to be worthy coin/token to invest in.. Good. Because I think most of these shitty websites are only paid to popularize/advertise these shitcoins
Instructor
Thats very true
Instructor
exaaaaactly brother
Student
so here is my question
Instructor
statistical websites needs someone with basic knowledge especially when it comes to important factors to analyse the asset for investment, funny thing in CMC, some cryptos are listed but their information are not verified by external teams hence they are not verified and their details have a warning sign that the details are from the project team but not verified with the CMC team
Student
this is very good info. So with basic understanding, just with CMC alone someone can deduce is a project is good or not, but checking if a project/coin/token is verified
Instructor
Instructor
Student
this PLC thing has made people lose a lot of money simply because of being listed
Instructor
I had that habit of buying cheap crypto when i see them listed in CMC 😪😪😪 Now am saved thanks to DIENA
Student
very informative
Student
now I have a better understanding of the difference between CoinGecko and CMC
Instructor
And also the project being verified alone is not enaugh for you to choose if its a good project,
because the data of the project can be verified but still the project is not stable and not having a stable tokenomics and great ecosystem for it to excell thus its important to take note.
also some new projects may not have a verfication badge but still they are good projects to invest, its very important to have informed knowledge as most of the time verification of the crypto can come due to popularity but not sable tokenomics or great project ecosystem
Student
Thank you I got something here.
Instructor
for a coin being listed and its having no verifiable data is such a big redflag, despite of that this PLCU thing is having such a complicated unnecessary structure with unnecessary version of token time to time, and people still fall for a trap
Student
thank you for this
Student
I see the idea
Student
do we look at statistical websites to make a decision on whether this is a good coin/token or we use the coin/token itself? Is there a trusted statistical website to use while making investment decision?
Instructor
I think its better to look on various sources of information before making a decision the crypto analysis platform are useful but not only to rely on. more analysis should be done on various aspects includiding the whitepaper
Instructor
While there are thousands of cryptocurrencies listed on websites like CoinMarketCap and CoinGecko, the total market capitalization represents the combined value of all those cryptocurrencies. The high market capitalization of over 1.2 trillion USD reflects the overall size of the cryptocurrency market, despite individual cryptocurrencies having varying market capitalizations
Student
yeah you are right
Student
it seems I have a long way to go. the concept is somehow difficult to grasp. I hope am not alone
Instructor
Thanks to DIENA that provides all the knowledge you need to know on how to analyze crypto and be good at blockchain in general 👌
Student
I am too, trying here😀
Instructor
I CAN PROVIDE THE RELIABLE ANSWER TO THIS , THUS NUMBER OF CRYPTOS IS SOMETIMES NOT RELATING TO THE TOTAL MARKET CAPITILIZATION
it's possible that certain cryptocurrencies may not be included in the calculation of the overall market capitalization. This can occur due to several reasons:
1. Exclusion from Data Sources: Market capitalization calculations rely on data from various sources, such as cryptocurrency exchanges or data aggregators. If a particular cryptocurrency is not listed or tracked by these sources, it may not be included in the market capitalization calculation.
2. Lack of Sufficient Data: Some cryptocurrencies may have limited data availability, especially if they are new or have low trading volumes. Insufficient data can make it challenging to accurately calculate their market capitalization and may result in their exclusion from market cap calculations.
3. Token Types: Not all tokens or digital assets are designed to have a market capitalization. For example, some tokens serve specific utility purposes within a blockchain ecosystem and may not be intended for trading on exchanges. These tokens may not be included in market capitalization calculations.
4. Calculation Methodologies: Different platforms and data sources may use different methodologies or criteria for determining which cryptocurrencies are included in their market capitalization calculations. This can lead to discrepancies and variations in the coverage of cryptocurrencies across platforms.
It's important to note that the total market capitalization of the cryptocurrency market is an estimate and may not capture the entire breadth of the crypto ecosystem. It's always recommended to refer to multiple reliable sources and consider additional factors, such as project fundamentals and market dynamics, when assessing individual cryptocurrencies.
Student
numbers 3 and 4 are very new to me. I consder this a time well spent this evening just learning these things. I am growing daily! Thank you mwalimu
Instructor
This is a chunk of knowledge thanks for sharing 🚀🚀
Student
you can say that again my brother
Student
For me, I think CMC has included a list of many coins that has a very small Cap. Those coins can't make a big difference if they are added among large capital coins dominating the market. Coin Geko has all bigger capital coins and does not list many projects with a small capital. That is the reason we cant see the difference it total market cap
Instructor
they have a self reported volume because CMC has more than 18000 cryptos more than COINGECKO, and infact coingecko todays ready capitilation of 1.25trillion while CMC reads at 1.21trillion so that may not be a factor but the major factor is to check the criteria which a considered for a crypto to be counted in the total market capitilization
Instructor
I WOULD LIKE TO RECOMMEND TO USE THIS SITE FOR STATISTICAL ANALYSIS OF DIFFERENT CRYPTOS
https://defillama.com/
Student
Duly noted, I will check it out right away. Thank you
Student
For me, I think CMC has included a list of many coins that has a very small Cap. Those coins can't make a big difference if they are added among large capital coins dominating the market. Coin Geko has all bigger capital coins and does not list many projects with a small capital. That is the reason we cant see the difference it total market cap
Instructor
they have a self reported volume because CMC has more than 18000 cryptos more than COINGECKO, and infact coingecko todays ready capitilation of 1.25trillion while CMC reads at 1.21trillion so i think, that may not be a factor but the major factor is to check the criteria which a considered for a crypto to be counted in the total market capitilization
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