COIN MARKET CAP
Coin Market Cap is one of the most used sites in Crypto and is a comparison site of all the crypto currencies currently being traded. It is pretty much ‘the site’ that is used every day by most crypto investors to keep on top of market trends and coin prices.
This is a very simplified overview designed for people new to crypto. It has been newly rebranded, with an API upgrade to allow easier access to their data.
How to use the CoinMarketCap.com site
As you get to the main page of coinmarketcap.com, you will see a page that looks like this.
There are a few key indicators to look out for on Coin Market Cap which will help you become more familiar with Crypto Currencies.
How to follow the total Market Cap (worth) of all Cryptocurrencies
One good way to judge the cryptocurrency market day by day is the total market capitalisation- i.e. the total value of all crypto currencies added together. This is a good way of judging the sentiment of the market at that time – especially if you watch the total market cap trending over time.
You can see the total crypto market cap by clicking on the $ value which you’ll find on the homepage just where the orange arrow is showing.
When you click on the Market Cap $ value (where the orange arrow is), you will be taken to a page of charts.
The first chart you will see shows the total value of all the crypto currencies together. As you can see, crypto currencies really started taking off in around April 2017.
You can see the total market cap for all time (since the site was started in 2013), or you can select see the chart for the last 1 day, 7 days, 1 month, 3 months or Year to date by clicking on the relevant tab where the big orange arrow is on the top left. Alternatively, you can enter the specific dates you want to see the market cap chart ‘to’ and ‘from’ by the big arrow on the top right, or drag the sliders marked by the small orange arrows on the bottom right.
Just below the Total Market Cap chart, you will see the chart for the total market cap (valuation) of all crypto currencies excluding bitcoin mirrors the chart for all coins including bitcoin almost exactly.
How to see the Percentage of Bitcoin Dominance in Crypto
As you scroll down the Total Market Cap page, you will see another chart, titled ‘Percentage of Total Market Capitalization (Dominance)’. This shows, in orange, what percentage Bitcoin has had of the total crypto currency market. As you can see, until February 2017, Bitcoin accounted for between roughly 80-90% of the total market cap of crypto currencies. Then, in June 2017, Bitcoin dropped to its lowest ever % share, 39% of the total market cap, as Ethereum and the altcoins shot to popularity.
An easier way of seeing how the individual main altcoins have gained dominance in the crypto currency space is by clicking on the ‘Stacked’ tab below this chart. The ‘Stacked’ chart shows more clearly how much the altcoins have increased within the cryptocurrency space relative to Bitcoin. Don’t forget that the total market cap (valuation) of bitcoin has increased enormously, especially within 2017.
How to compare cryptocurrencies using Coin Market Cap
When you go onto the homepage, your first choice is to view the top 100 coins by market cap, or to view all crypto currencies currently trading.
The default on coinmarketcap.com is to show you the top 100 coins – which is probably easier if you are just getting started in crypto as there are now well over 1500 coins and tokens as of April 2018.
Compare by Valuation in different Currencies
How to set the currency you see the cryptocurrencies listed in
Unless you choose otherwise, the default currency to see coins listed in is the USD. However, if you click on the blue USD button (here shown as having already clicked on BTC) you can choose to see coin values listed in Bitcoin (BTC), Ethereum (ETH) or in a long choice of other fiat currencies including the Euro, Pound, and Canadian and Australian Dollars.
Whilst it may be tempting initially to look at currencies’ values in your native fiat currency, crypto is almost always traded in the USD so it is good to get in the habit of knowing coins’ values in the USD.
However, the best way to look at coins’ values is in Bitcoin or their Satoshi value. This is because in crypto, Bitcoin is still very much king. Bitcoin very much leads the altcoins, and really, one should only judge any price changes relative to bitcoin.
I.e. if you are looking at coin prices in USD – and your chosen altcoin (for example Dash) has gone up 10%, but Bitcoin also has gone up 10%, then Dash hasn’t really gone up relative to Bitcoin as you would have earnt just as much had you just kept Bitcoin.
However, if you look at prices in Bitcoin, then any increases or changes are relative to Bitcoin, with your aim being to earn more than you would have made had you just kept your money in Bitcoin.
How to rank cryptocurrencies on Coinmarketcap.com
By Market Cap
By default, coins on coinmarketcap are ranked by market cap. Market cap is the total value of that crypto currency, calculated by the total number of coins in circulation multiplied by their value (price) at that time.
To rank coins by market cap, simply click on the ‘Market Cap’ tab and coinmarketcap will rank them automatically for you. If you click the tab again, it will rank the cryptos in the reverse order (from lowest to highest market cap).
Coinmarketcap will either rank the top 100 cryptos, or all cryptos, depending on which option you selected.
It is seen as quite important for a coin to be in the top 100 coins on coinmarketcap, and often, a coin entering the ‘top 100’ on coinmarketcap is enough to draw attention to that coin and raise its profile even more, often leading to that coin being pushed up in price by the increased sudden attention it gets.
By trading volume
You can also rank coins by volume by clicking on the ‘Volume (24h)’ tab. Click the tab once if you want the volume to be from the highest to the lowest. If you want the volume in ascending order – from the lowest to the highest volume) click the tab twice.
This is a very important way to measure the performance of coins – if a coin has low trading volume, it is usually an indication that there are not many people wanting to buy that coin at that time. If you are looking at buying coins to trade and sell- you also want to make sure that there is enough daily trading volume in the coin for you to be able to sell your coins – ie you want to make sure that there will be enough buyers for the amount you want to sell. There is more information on trading by volume here
By Change in price
This is one of the fastest ways to judge the market – often you can get a feel for where the market is that day just by looking at the colour under the Change tab – green means the price is up since that same time 24 hours ago, red means the value is down by that percentage since that same time 24 hours ago.
If you go into viewing all cryptocurrencies rather than just the top 100, you can also see the price change by 1 hour or 7 days – this allows you to track the price changes hour by hour, or to get a more general overview for a coins’ performance by seeing which coins have increased or decreased the most in value.
By Circulating Supply
You can click on the ‘Circulating Supply’ tab to see cryptos listed from most to least in circulation, or possibly more usually, from least to most, if you click the tab again.
You can see cryptocurrencies listed by price by clicking on the ‘Price’ tab
How to use filters on coinmarketcap.com to sort through cryptocurrencies
One of the most effective ways to use coinmarketcap is to search through all of the coins listed, but using their filters, to filter out what are effectively ‘dead’ or worthless coins that will hold no value to you.
You can find the filters by first selecting to see all coins, rather than just the top 100.
The filter tabs are shown just by the orange arrows. You can filter for coins by Market cap, price and volume.
Filter by Market Cap
Click on the tab beneath ‘Market Cap’ marked just under the orange arrow.
This filter is useful if you want to see only the biggest coins by market cap.
Filter by Price
Filter by 24 hr trading Volume
Filtering cryptocurrencies by volume can be very useful – especially as you can filter by all volumes over your chosen amount. Coins with low trading volumes are often ones you want to avoid.
For this filter, filtering by volumes of $100k + per 24hrs is recommended, only for really small coins might it be worth looking at $10k +. For coins trading at less than $10k per day, that would typically mean that there’s less interest in the coin and it might be harder to sell out of if you were to buy some.
How to set more than one, or multiple filters on coinmarketcap.com
This can be one of the best ways to sort through all of the many cryptos to find new potential coins to look into – as – for example – you can eliminate coins with the lowest trading volumes whilst looking only at the coins with a higher market cap- or any combination, depending on your strategies.
Other ways to compare cryptocurrencies on Coinmarketcap.com
Comparing cryptocurrencies by Biggest Gainers and Losers
This is a very useful tool and can be used to see the top 30 gainers and losers in price, for the last 1 hour, 24 hours or 7 days.
The Gainers and Losers tool can be reached by clicking on the ‘Trending’ tab and then selecting ‘Gainers and Losers’ – as marked by the orange arrows.
The gainers and Losers tool can be very useful to judge market sentiment, as well as learning trends. For example, at the time of writing, the Bitcoin Gold fork has just happened and Bitcoin has recently increased tremendously in value.
As you can see in the top 10 Gainers for the last 7 days, 5 are Bitcoin themed coins.
BTCMoon, the top Gainer at the time of writing, as you can see by the chart below – had had a total 24 hr trading volume of just $1414 two days ago.
Whilst it isn’t usually recommended to buy coins after they have been heavily pumped/ increased so much in price, using this tool can be a good way to learn trends in crypto and see which coins follow on from major movements in others.
How to see cryptocurrencies that have been Recently Added to Coin Market Cap
This feature shows you all the newest coins and tokens that have been added to Coin Market Cap within the last 30 days.
The recently added coins can be accessed by clicking on the ‘Trending’ tab in the main menu and then clicking on ‘Recently Added’.
This is a very useful way to keep track of coins as they enter exchanges after ICO. If there are ICOs you have been watching, this is a great way of getting yourself the best position possible from that ICO. If you bought tokens in the ICO sale, you can see when the ICO hits the exchanges and watch the progress of the coin, if you want to sell out some and realise some profit.
Alternatively, as is often the case with ICOs currently, some ICOs are dropping in value once they hit the exchanges- in some cases, it is cheaper to buy the tokens or coins once they hit the first exchanges, than it would have been during the ICO. If it is a good coin and you think it will increase in value, this can be a good way to buy some tokens, as there is often a gap between the coins hitting the exchanges and their going up in value, when you can potentially make a good profit.
How to see the Trading Volumes of cryptocurrencies, and sort cryptocurrencies by Trading Volume on coinmarketcap.com
How to see which exchanges coins are selling on by volume
If you click on the “Trade Volume’ tab 24 hour Volume Rankings by Currency, you can see the volumes of that coin traded on each of the exchanges.
This is good to pay attention to, as you can see where Asian money is going to (China and Korea are increasingly dominating the crypto markets and are influencing the valuations of coins).
This tool also helps you see the best exchange to buy your chosen coin or token on, as ideally you want the exchange with the highest volume for that coin.
How to see the crypto exchanges with the highest total trading volumes, and list the cryptocurrencies with the highest trading volumes
This tool shows all of the biggest exchanges by trading volume. This is useful to watch, as you can see which countries and markets are becoming more dominant in crypto.
It is also useful to know which are the largest exchanges – and track which coins are added to these exchanges. When a coin which has previously only been listed on smaller exchanges is listed on a new, larger exchange, for example Bithumb or Bitfinex, the huge increase in volume, or even the new market (for example if it is being listed on a Korean exchange for the first time) can push the price of the coin up.
Some people make a living in crypto watching out for coins being added to new exchanges in the hope it will push the price of their coin up.
How to see the cryptocurrencies with the highest trading volume in the last month
This shows general market sentiment across the world of the coins with the highest trading volume. This gives a good indication as to where the money is flowing and which coins might continue to go up more.
You can access this tool by clicking on ‘Trade Volume’ and then on ‘Monthly Volume Rankings (Currency) from the drop down.
How to review individual cryptocurrencies on Coin Market Cap
To find all the links and information of any particular cryptocurrency, you can either click on the name from the list, or type the name in the search bar at the top right hand of the homepage.
To the top left you can see all the resources for the coin:
Website – links straight to the coin’s website
Announcement – this links to the Bitcointalk forum which shows the historical discussions on the coin, often going back for years since the coin came about. Bitcointalk.org is one of the best sources of information for crypto coins. If you have any doubts about the history of a coin, or if it’s a scam or not- this is a good place to read all the past chats which can go back many pages.
Chat – the chat links take you to the Telegram and/or Slack pages for the coin
Markets – By clicking on the ‘Markets’ tab, you can see all the exchanges where the coin is traded, in order of volume. You can also see the different prices that the coins are trading at on the different exchanges. In some cases there is enough of a difference to arbitrage coins- i.e. to buy them cheaper on one exchange and sell them on another.
Social Media – By clicking on the ‘Social’ tab, you will see the latest Twitter tweets and also the twitter handle that you can link to.
It is worth following coins you are interested in on twitter, as that is where they will often post their latest updates.
How to see the History of cryptocurrencies on Coinmarketcap.com
If you want to torment yourself by seeing how much you could have paid for Bitcoin and Alts, had you got into crypto earlier, you can see the historic prices and listings for all the coins by date, shown for every week since April 2013 when the site was first created.
To access the historic prices for Bitcoin and all Altcoins since they were first listed, click on ‘Tools’ from the main menu and then ‘Historical Snapshots’.
In Historical Snapshots, you can click on any week going back to April 2013.
Doing so will help you see how fast crypto has grown, as well as being able to see the trends and crashes.