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Guide with Images | Essential for Beginners! Introduction to CoinMarketCap, Things that Veteran Traders Might Not Know

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Guide with Images | Essential for Beginners! Introduction to CoinMarketCap, Things that Veteran Traders Might Not Know

The cryptocurrency information platform CoinMarketCap is a useful price information platform for both beginners who are new to cryptocurrencies and seasoned investors in the crypto space.

Whether introducing it to beginners as their first tool or showcasing new features on CoinMarketCap to experienced investors, this platform is truly deserving of its reputation.

Entering the World of Cryptocurrencies: A Quick Guide to CoinMarketCap

When you first enter the world of cryptocurrencies, you might want to quickly grasp an overview of the market and create your own customized list of coins!

Upon visiting CoinMarketCap's homepage, you will find data and recommended videos. In the image below, we explain the meaning of each data point in red text. Additionally, you can customize the language, currency display unit, and day/night mode in the top right corner of the website according to your preferences.

Scrolling down, you will come across the current cryptocurrency market rankings. As of the time of writing, the top three in market capitalization are BTC, ETH, and USDT. The image below highlights some practical features with red boxes, which we will explain in numerical order.

  1. Next to each coin, there is a star symbol. Clicking on the star will add the coin to your "Watchlist." You can view your Watchlist by clicking on the blue box in the top left corner. In the example shown, clicking on the star will display BTC and ETH.
  2. The homepage is initially arranged by cryptocurrency market capitalization size, but you can click on other options in the box for different sorting methods, such as by total value, DeFi, NFT, GameFi, or project tokens on different blockchains.
  3. If the above categories do not meet your needs, you can click on "Filter" in the top right corner to further sort by more detailed criteria like category, algorithm, platform, or industry.
  4. In addition to the default cryptocurrency information on the homepage, you can click on "Customize" to select other information you want to see. You can choose from the options shown below, selecting up to 12 items to display simultaneously, with the selected items highlighted in dark blue.

Under the "Cryptocurrency" menu on the homepage, you can choose "Global Charts" and "Highlights." Clicking on Global Charts allows you to view the current cryptocurrency total market value chart, including with or without BTC, and the cryptocurrency market share chart. The market share chart can clearly show the changes in market share of major cryptocurrencies, with BTC's market share being an important indicator for assessing the overall market condition.

If you don't have a specific coin in mind to observe, you can click on "Highlights" to see a list of five coins that are more indicative, such as the most "popular," highest and lowest price changes, "biggest gainers" and "biggest losers," "most visited," and "recently added."

Identifying Promising Assets: In-depth Analysis of Specific Cryptocurrencies

After finding a coin of interest on the homepage, clicking into it will provide a detailed overview of information and price trends. CoinMarketCap currently supports TradingView, offering charting tools and technical indicators for users to conduct comprehensive analysis. Further down, you will find related knowledge about the coin, providing insights into its development history and applications.

Upon reviewing the various information about the coin, clicking on "Markets" will display the trading information of that coin across different exchanges, including price, trading depth, and volume. The two indicators on the far right in the red box are unique to CoinMarketCap. The "Confidence" indicator displays as High, Moderate, or Low, reflecting CoinMarketCap's confidence level in the accuracy of reported trading volumes by exchanges. The "Liquidity" score ranges from 1 to 1000, with a higher score indicating higher market liquidity.

In addition to the functionalities available for investors to make assessments, clicking on "Analysis" provides more indicators. Here is a brief introduction to each indicator.

Token Overview

  • Holders Marking Money at Current Price: Percentage of holders profiting at the current price
  • Concentration by Large Holders: Percentage of large holders with holdings over 0.1% of total circulation
  • Holders’ Composition by Time Held: Distribution of user holdings by time held
  • Transactions Greater than $100k: Total volume of transactions exceeding $100k in the past 7 days
  • Transaction Demographics: Proportion of trading volume during Eastern trading hours (10PM – 10AM UTC) and Western trading hours (10AM – 10PM UTC) in the past 14 days

Token Metrics

  • Summary: Indicates overall market sentiment in a bullish or bearish market
  • Net Network Growth: Weekly change in the number of addresses holding the token
  • In the Money: Percentage of the token's volume that is in-the-money with daily changes in profit-taking sales
  • Concentration: Daily changes in the percentage of large holders with holdings over 0.1% of total circulation
  • Large Transactions: Changes in the volume of transactions exceeding $100k

The further left the indicator, the closer to a bear market, and the further right indicates a bull market.

Exploring the Vibrant NFT Market

On CoinMarketCap, you can now access information about the NFT market. By clicking on the "NFT" option on the homepage, you can view the current market rankings. The platform supports rankings based on NFT projects or individual NFTs. Furthermore, clicking on the categories in the red box on the right allows for more detailed rankings based on NFT categories like gaming, music, metaverse, art, and sports.

Staying Informed: Accessing Comprehensive Cryptocurrency Activity Information

The cryptocurrency world is filled with various activities every day. By selecting "Events" from the homepage calendar menu, you can find organized event information. Users can choose to display specific types of events like token launches, AMA sessions, airdrops, and community events based on their preferences. The number of likes next to the event information can be seen as an indicator of activity popularity or anticipation. If you wish to see events on a specific date, you can use the calendar in the red box on the right to select the desired date, as shown in the image for events on 9/23.

Asset Conversion Services: Where to Exchange Your Assets

CoinMarketCap integrates decentralized token exchange services. By clicking on "Token Swap" in the product menu and connecting your wallet, you can use decentralized exchange platforms on Ethereum, Binance Smart Chain, or Huobi Eco Chain. The platforms currently supported include UniSwap, PancakeSwap, and Mdex.

The functionalities described above are not exhaustive but are considered more practical and informative for users. CoinMarketCap continues to introduce new features, and taking the time to understand this platform thoroughly will undoubtedly be beneficial for navigating the cryptocurrency industry in the long run!

Furthermore, with the rise in cryptocurrency scams in recent years, if you receive any advertisements related to cryptocurrencies or new exchanges, it is advisable to first check CoinMarketCap for information on the coin or exchange. If you cannot find the information, be cautious as it may be a potential scam!