Market Capitalization
The total value of a cryptocurrency, calculated by multiplying the current price per coin by the circulating supply. Market cap is the primary metric for ranking cryptocurrencies by size and is used to categorize assets as large-cap (>$10B), mid-cap ($1B-$10B), or small-cap (<$1B).
“If Bitcoin is priced at $60,000 and has 19.5 million coins in circulation, its market cap is approximately $1.17 trillion, making it the largest cryptocurrency.”
Token Supply
The quantitative metrics describing a token's availability: Circulating Supply is the number of tokens currently available in the market; Total Supply is all tokens that have been created minus any that have been burned; Max Supply is the absolute maximum number of tokens that can ever exist (if capped). These metrics directly impact market capitalization calculations and price analysis.
Cryptocurrency
A digital or virtual currency that uses cryptography for security and operates on a decentralized network, typically a blockchain. Unlike traditional currencies issued by governments, cryptocurrencies are not controlled by any central authority and use consensus mechanisms to validate transactions and maintain the integrity of the ledger.
Trading
The buying and selling of cryptocurrencies with the goal of generating profit from price movements. Crypto trading occurs on centralized exchanges (using order books), decentralized exchanges (using liquidity pools), and via derivatives platforms. Common strategies include spot trading (buying/selling actual assets), margin trading (using leverage), and derivatives trading (futures, perpetuals, options).