Large Cap Cryptocurrency
Large cap (or “market capitalization”) is a metric used to rank the relative size of a cryptocurrency. Market capitalization is calculated by multiplying the circulating supply of coins by their current price in US dollars. The largest 100 cryptocurrencies, based on total market capitalization, are referred to as large-cap cryptocurrencies.
Compared with other types of cryptocurrency, such as mid and small-cap coins, large-caps tend to be more established projects that have been around for longer and have higher liquidity. As such, they tend to experience less volatility than smaller cap coins which can make them attractive investments for those looking for stability over potential gains from more speculative assets.
Large cap cryptos also typically have larger developer teams behind them with better resources available enabling faster development cycles and improved security measures compared to their smaller counterparts. This makes them attractive options for investors who value reliability and trustworthiness in their crypto investments.
While large caps may not generate the same returns as some mid or small cap altcoins do due to reduced volatility and inherent risk associated with investing in newer projects, they can still provide steady returns over time when held long term without being subject to wild swings in prices like many altcoins are prone too.
