CoinMarketCap is one of the world’s highly referenced websites that is used for tracking the price of crypto assets in the fast-expanding crypto space. The mission of the website is to ensure that cryptocurrency is easily discoverable as well as globally efficient. The site offers accurate, unbiased, and high-quality information to crypto users, enabling them to draw their conclusions.
BACKGROUND
The brainchild of Brandon Chez, CoinMarketCap came into existence in May 2013. The platform has quickly expanded to become of the widely trusted sources by institutions, users, and media for comparing hundreds and thousands of cryptocurrencies. Given the portal’s growth & popularity, Binance Capital Management, the globally recognized blockchain firm acquired CoinMarketCap in April in 2020.
With this acquisition, CoinMarketCap will tap into Binance’s resources to gather additional extensive data into their projects, thus minimizing the information asymmetry within the cryptocurrency industry.
BENEFITS OF USING THE COINMARKETCAP PLATFORM
As far as CoinMarketCap is concerned, the platform is useful in several ways such as:
– Offers useful data, statistics, information, and charts.
– Has information/data about hundreds and thousands of cryptos.
– Provides accurate and reliable information.
– Ranked among the top one thousand largest portals in the globe as per a report shared by Similarweb.
However, most of the crypto investors have no idea regarding how to utilize the CoinMarketCap website to its fullest potential.
LEARN HOW THE PLATFORM CAN BE USED FOR CRYPTOCURRENCY INVESTING AND TRADING.
Market Metrics: Understanding how the global market metric is read is the very first step to knowing how to utilize CoinMarketCap. Once you land on its website, you will find a few global metrics at the top of its homepage. When you glance through these metrics, you will get a rough understanding of the market condition or status.
These metrics include:
– The cryptocurrencies are listed on the CMC website in total.
– The markets as well as their rankings in total.
– The global market capitalization of the crypto industry on the whole. These statistics help keep a track of the amount of money that is flowing out or in the ecosystem. Once you click on the statistic, you shall notice the data presented in a graphical pattern.
– The 24-hour trading volume is carried out across all the exchanges for different cryptocurrencies listed on the platform.
– Bitcoin dominance – This is calculated as the Bitcoin’s market capitalization/ Total market capitalization. When Bitcoin’s dominance drops, it implies that other cryptos have been increasing in amount and getting more attention from the investors.
Coin metrics- When one clicks on any given crypto coin, he/she is taken to that person’s coin dashboard where they can view a few basic metrics such as:
– Trading volume
– Market capitalization
– Price (in terms of US dollars, ETH and BTC)
– Total, Circulating, and Maximum supplies as and when the coin is available
– Chart data
In a nutshell, CoinMarketCap has integrated with different exchanges as well as coins, to provide accurate and consistent data.
RESEARCH ABOUT ANY CURRENCY
While, not every cryptocurrency in the globe is part of the CoinMarketCap list, but thousands of them are. This means you can research about your preferred crypto coin by simply typing the name of your preferred crypto coin on a search bar. This way, you will save a great deal of your time and the hard work needed for searching for your crypto coin.
Useful Graph Data: The graph data, on the CoinMarketCap website, is also very useful. It not only allows you to view the data visually but also helps you to get a granular view of what you require at the time of analyzing historical and current pricing data.
At the time of using the graph functionality, investors can:
– Make changes in the date. You could pick a time frame i.e. 1 year, 3 months, 1 month. 7 days or 1 day to have a historical view or to adjust the time-frame manually.
– View the prices in BTC, USD, as well as ETH (based on the crypto coin)
– Exclude/include the market capitalization as well as the 24-hour volume.
– View log or linear graphs. The linear graph is easy to read, especially when you are a beginner, however, it is a log graph that provides a clearer overview.
Relevant Links for Every Coin: When an investor clicks on any coin and enters its dashboard, he/she will find several useful links like:
– The official site
– Whitepapers
– The top blockchain explorers
– Communities (i.e. Discord groups/Telegram, forums, etc.)
– Technical documents
– Whether it is a token or coin
– Whether it can be mined or not
The links available on the CoinMarketCap platform are completely trustworthy.
Best Exchanges in terms of Volume: When it comes to investing in cryptocurrency, liquidity matters a lot. The higher the liquidity of an exchange, the easier it gets to purchase or sell the coin at the same price. On the CoinMarketCap platform, one can view the leading 100 exchanges in terms of volume.
Information About the Exchange: Once you have scanned different exchanges, you may click on any one of them to gain a deeper understanding of the same. You’ll be directed to the dashboard of that particular exchange, where you will spot useful links like:
– The official site
– Social media webpages
– Support
You’ll also get to see all the different trading pairs that are included in the exchange’s list, from just one place.
Learn Where to Purchase Any Cryptocurrency: In case you have discovered a new crypto coin, but have no idea where to purchase it. If yes, then you can turn to CoinMarketCap. To do this, you need to click the market button, and you will find all the trading pairs and exchanges. In addition to this, you can also check the prices, as well as pick the best ones for yourself.
Avoid Getting Misled: The world of cryptocurrency is plagued with fake websites and phishing scams, as well as fake wallets and exchanges, and investors may consider them to be real. This can land any investor into a great deal of trouble, and in all probabilities, your funds can get stolen when you transfer the crypto to that fake exchange. However, one of the biggest advantages of the CoinMarketCap platform is that it has neither been hacked by any hacker nor has it exposed the users to any fake links. Thus, it is a highly reliable source for gathering relevant information.
CREATE YOUR WATCH LIST
The CoinMarketCap platform lets you set up your watch list without creating an account. This watch list allows you to list your preferred coins, allowing you to keep a track of their progress. Thus, instead of keeping a track of over 1000 coins, you can keep an eye on your watch list as well as those coins that are important for you.
To include a coin in your watch list, you need to visit the dashboard of the coin and press the “watch” star under the pricing information. After you have added a couple of coins, you are free to go back to your watch list without the need to log in.
With CoinMarketCap, you can also view the top gainers as well as the losers in the crypto market as far as price action is concerned. Apart from this, the platform also provides you with a tool for converting any cryptocurrency’s pricing. This way you can see the amount you have of one particular asset when compared to another asset, whether it is cryptocurrency or fiat.
COINMARKETCAP API
If you are interested in backtesting a trading strategy and require historical data, or you need to put market data in the excel sheet to view the value of the portfolio, then you could use the CoinMarketCap API. The platform offers a considerable amount of documents that suggest how one can use the CoinMarketCap’s API, and you can use it for free. The API happens to be a highly sophisticated tool within the CoinMarketCap tutorial.
WHY DOES COINMARKETCAP EXCLUDE THE MARKETS WITH ZERO FEES?
When zero fees are being charged at an exchange, the trader (or the bot) may trade back as well as forth, and generate ‘fake’ volume without any penalty. In such a scenario, it becomes difficult to exclude it from any calculations entirely.
HOW CAN I PURCHASE CRYPTO?
CoinMarketCap reports regarding the activities of hundreds and thousands of crypto markets but doesn’t sell any crypto. The ideal way to look for the place to purchase cryptocurrency is by checking out the markets category. For instance, to search where to purchase Bitcoin, you can check the Bitcoin markets section.
WHAT IS THE * (SINGLE ASTERISKS) VISIBLE ON THE PRICING NUMBER?
When CoinMarketCap fails to verify the pricing for every exchange, or in case the pricing on an exchange varies excessively from that of the other exchanges, the company excludes them to provide a highly accurate aggregate pricing on the numbers visible on the website.
CONCLUSION
To sum up, if you are searching for a highly informative crypto website that also features easy to access historical charts as well as up to date pricing, then CoinMarketCap is a good place to get started.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
Earnings Disclaimer: The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.
