Mid Cap Cryptocurrency Definition
Mid cap cryptocurrencies refer to digital assets that have a market capitalization or “cap” between the top 10 and 100 largest coins by capitalization. This range can be subjective, depending on which data source is used for calculations. Generally, mid-cap coins have lower trading volumes than their larger peers in the top 10 and are more volatile due to less liquidity in the market. Mid-cap coins are also often associated with higher risk since they may not have as much of an established track record or network effects when compared to larger cryptos.
However, there is potential for higher reward from investing in mid caps because these currencies tend to experience greater price movements when compared with large cap cryptos. In addition, mid cap projects usually carry greater short term momentum (as measured by 24 hour gains) than those of large and small caps combined. As such, investors looking for quick returns should consider examining mid-caps as part of their portfolio strategy; however it must be remembered that these investments come at a greater risk due to less liquidity and a shorter track record of success/failure..
