- Crypto tracking basically refers to the consistency of monitoring various metrics of a particular coin.
- Circulating supply refers to the number of coins of a particular coin that are presently circulating in the market.
It is essential for the trader to track its crypto assets as well as the new coming crypto coins and NFTs. Knowing the volatility of the crypto market and being aware of the market scenario is crucial for any trader.
The process of crypto tracking is a bit complex for beginners but with time, one will understand what parameters one trader should consider while trading in the market.
Crypto tracking basically refers to the consistency monitoring of various metrics of a particular coin. Metrics include its price, its market cap, circulating supply and other things. Being informed about all this data helps traders make informed decisions, traders can identify where to enter the market and where to exit the market.
The First step is to select, find and get familiar with the trustworthy crypto- tracking platform. Some of the popular crypto tracking platforms are bitDegree, CoinMarketCap, or CoinGecko.
Crypto Analysis Indicator
Crypto indicators are the tools used to track coins and NFTs. There are a variety of indicators that help one predict the direction of the crypto coins. Majority of these tools are based on mathematical calculations that are verified by the industry expert.
As a pro chef knows his recipes and ingredients, in a similar way a pro trader knows which indicator to use. Though, one side of the coin is understanding them, while the other side of the coin is understanding what role does a trader play and on what indicators a trader should keep eye on. Moreover, a trader should be able to read those indicators not only from the tokenomics angle but also from the trader’s perspective as well.
Market Capitalization
First things first, find the market capitalisation (market cap) of the crypto stock. Market cap is used to attain the total value of the crypto currency. That’s why it is also known as total crypto market cap. The market cap of a stock is calculated by multiplying current market price with the total number of coins in supply, circulating supply.
It said that, the more coins in circulation, the higher the price of the crypto and the bigger the market.
Circulating supply, Total Supply and Max Supply
Circulating supply refers to the number of coins of a particular coin that are presently circulating in the market and being traded by traders. The key word s in the above definition is presently, which means that if coins are burned, destroyed or kept in a cold wallet by any holder it will not be counted in circulating supply.
This is an important indicator for the trader as it informs him about the growth of the crypto currency. This tells whether more coins are introduced in the market which are directly affecting the price of crypto assets. Continuing the circulating supply concept, if we include all those coins in the count, then it will show the total supply of the crypto asset.
Max supply refers to the total number of coins or tokens that have been created for a particular cryptocurrency. Many coins can be minted and new coins can be created in the crypto currency whereas some cryptocurrency has limited its supply and they cannot be minted, furthermore at that time a cryptocurrency has the maximum supply.
Conclusion
Crypto tracking is crucial for traders to monitor and analyse various metrics of their favourite coins and tokens. Understanding indicators, market capitalization, and circulating supply helps traders make informed decisions and predict market movements. Selecting reliable tracking platforms and mastering indicators are essential for successful trading in the complex crypto market.
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