Coinmarketcap 101

CoinMarketCap: Understanding the largest coin tracking site

CoinMarketCap: When you are getting started with cryptocurrencies, you need a tool that helps you to analyze different crypto coins. A platform that is reliable and convenient. One such platform is CoinMarketCap and many times you will see people quoting it. If upon visiting the website you find the information too cumbersome to understand, you don’t have to panic. In this guide, we will have a look at what Coin Market Cap is and how you can use the data displayed on the website effectively.

What is CoinMarketCap.com?

It is a website that tracks capitalizations for various cryptocurrencies. It provides data on cryptocurrency trading volume, supply, price, exchange platforms and other relevant information about various digital assets.

The website provides up to date information on the crypto market with statistics refreshing after every 5 minutes. The platform calculates market capitalization by multiplying the price by the total supply. Calculation of Prices occurs by averaging the prices on all significant crypto exchanges weighted by volume.

Coins that have stale data points which are more than 6 hours old are shown at the bottom of the list with question marks. If this doesn’t change, they are de-listed after seven days.

The website design is easy to use. It offers a wide range of tools, data, and graphs that beginners and expert traders can use.

CoinMarketCap Main Page

When you visit coinmarketcap.com, the first thing you will notice is the list of the top 100 crypto coins by market capitalizations. The table will display the name of the token, its market capitalization, its price, its volume, its circulating supply, the change it has experienced in the past 24 hours and a graph that shows the coin’s performance over the past seven days.

How to use data displayed on the website

CoinMarketCap

The first column of the table as you see above shows the name of coins and tokens. For those who are wondering what the difference is between the two; a Coin is a cryptocurrency that has its own blockchain and runs independently. But, a token is a coin that initially depends on another blockchain.

There is also an option to exclude tokens/coins from the list by clicking on the cryptocurrencies tab. Here you will see different filters that offer the display you desire like an option to view only minable coins.

The next column is the market cap. It displays the total value of a cryptocurrency and ranks coins according to the one with the highest amount to the one with the least. It is the essential unit when evaluating different crypto coins.

Price, Circulating Volume and 24-hour volume

The next three columns include the price, the circulating volume, and the 24-hour volume. Price shows the current value of the coin. Volume indicates the worth of the amount of a cryptocurrency that has been traded within 24 hours.

By clicking the volume number of a given coin, you will get to see the list of all exchanges where most of the trading has taken place.

The circulating supply shows the total amount of crypto coins that are in public hands at that given moment. You can Visit this link to get a better understanding of market cap, volume, and supply.

A 7-day bitcoin trading chart

CoinMarketCap

The next two columns include 24-hour change and a 7-day price graph. The 24 hours value change tells if the value of a coin has increased or decreased in the past 24 hours. The price graph charts the movement of the price of the cryptocurrency over the past seven days.

Also, the base currency is displayed in USD by default. However, you can change this to either BTC, ETH, XRP, BCH or LTC.

Criteria for listing coins/tokens on CoinMarketCap

There are a few necessary steps you need to fulfill for the listing of a cryptocurrency to occur.

  • The token must be a cryptocurrency or a crypto token.
  • It must be listed on a public exchange that has an API which reports the last 24-hour trading volume and the final traded price.
  • The coin/token must have a non-zero trading volume on at least one supported crypto exchange as this helps determine a price.
  • Must have an accurate circulating supply to help determine market cap ranking.

If the cryptocurrency meets the above requirements, then one can fill a request form to get it listed. As of the time of writing, CoinMarketCap has 2017 crypto coins/tokens listed.

You can watch the video below to get more understanding of how to use CoinMarketCap

coinmag

Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

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