## Market cap is the key to measuring the true size of a cryptocurrency—don't just look at the price
When investing in crypto, many beginners only consider the price level when making decisions, but this is the easiest way to get trapped. Which has a larger scale: a coin priced at $2 or one at $50,000? You might not guess the answer. That’s why understanding **market cap** is more important than just watching price fluctuations.
### What is market cap? Explained in one sentence
Market cap = Current price × Total circulating supply
For example: a coin priced at $5 with a circulating supply of 1
View OriginalWhen investing in crypto, many beginners only consider the price level when making decisions, but this is the easiest way to get trapped. Which has a larger scale: a coin priced at $2 or one at $50,000? You might not guess the answer. That’s why understanding **market cap** is more important than just watching price fluctuations.
### What is market cap? Explained in one sentence
Market cap = Current price × Total circulating supply
For example: a coin priced at $5 with a circulating supply of 1