Unit 3 · Level 2 · The Long Game
Market cap: the real size
A coin at $0.001 is not 'cheaper' than one at $50,000. What matters is MARKET CAP: price × total supply. A $0.001 coin with 100 trillion tokens is a $100 BILLION project. Price-per-unit is a costume; market cap is the body.
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What you get asked
Coin A: $0.01 with 1 trillion supply. Coin B: $100 with 10 million supply. Which project is 'bigger'?
Price × supply. Always. The '$0.001 so it's early' pitch is the most successful math trick in crypto marketing.
'This $0.10 coin just needs to reach $1. Easy 10x!' The coin has 500 billion tokens. What would $1 require?
Ask 'what market cap would that price imply?' and most moon math dies instantly. You just gained immunity to a thousand shill posts.
Match the cap tier to its typical character
Size = inertia. Doubling a $1T asset needs a trillion dollars of conviction; doubling a $10M coin needs one crowded Telegram group.
Market cap = price × ___.
In crypto, also check CIRCULATING vs TOTAL supply, because locked tokens unlocking later can dilute the price. That's tokenomics, next lesson.
Why do small caps pump 50% on days large caps move 2%?
Thin order books, tiny inertia. Same reason they DUMP 50%: no inertia works both directions. Remember the liquidity lessons: violence and thinness travel together. 🐜
The rest of this unit
DCA, market cap, tokenomics and earnings: telling investments from trades.