Crypto Academy Week 6 Homework Post for @stream4u | Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, Importance Of Watchlist.

Hello Everyone,

Now that we have some sort of technical knowledge overall subject of crypto world, I'm glad that this week both crypto professors @stream4u & @besticofinder choose their topics considering the investment context. It is essential to understand the capital involvement and the risk management when we investing in a volatile market. This week lesson we have "Types Of Crypto Assets Capital, Risk Capital In Penny Cryptocurrency, How to Set Watchlist?"

Homework Task 6 For @stream4u.png
-----------------------------------------------Introduction to the homework task---------------------------------------------

Let’s begin the homework for this week 👇

Homework Task (Question1):

Differences in Large Capital - Mid Capital - Small Capital and how they will affect to the Investment?

Within the three markets the common set of the word is Capital, Large / Mid / Small refers to the capital size according to the market and the capital involvement represent the financial worth of it. Such categorization helps investors to determine the value of the company, hence they have proper plan for their risk involvement and profit share. Usually, the smaller capitalization has the higher risk involvement. But it does not denote that the Large capitalization has no risk involvement. Risk is there for any market, percentage wise it could be less risk to other markets. Let's dig a little deeper in every market.

Source: Youtube: The Motley Fool

  • Large Capital and the affect to the Investment:

If the market capitalization is $10 billion or more, such companies stands out as Large Capital. It is obvious that to gain such dollars to a company you have to be a long time player in the market. Usually, such companies are the pioneer in their respective industries.

For an investor, investing in such companies will give more dividends as the company doing well and have been doing for the previous years. Such guarantee across many years will provide the safe and sound investment for a long run. Growth will be there with the years to come with stable stocks but not the huge returns within short period of time.

  • Mid Capital and the affect to the Investment:

If the market capitalization is between $1 billion to $10 billion, such companies stands out as Mid Capital. These are the business models which attracts progress in the market. Hence an investor might interest more in their future growth prospects rather than the current states. Since the investor believes return in the future Mid capital have larger risk than the Large capital.

  • Small Capital and the affect to the Investment:

If the market capitalization is less than $1 billion, such companies stands out as Small Capital. Such companies could be just starting to grow their business in niche markets or new industries. Also majority could be new to the market as well.

The element of risk in investing to such small capital is huge. The main reason is that they haven't prove them enough in the market and might not have the competitive edge. However, comparing to the both other markets the investment will be the lowest and if the company live up to expectations of the investor, in little time return will be fast and large.

Homework Task (Question 2):

Which type of Asset capital can be more profitable? Why? Advantages and Disadvantages.

The question is about my personal view, hence my choice would be the Mid Capital, after some background research of the project/ company and if it gives the return I expect with the risk I would take, I think I will go for an investment in mid range.

  • Reason behind my selection:

Well, I would like to go for stable investment in large capital, but I'm certain that I might not be able to invest in large. The capacity I have is either for small and mid. Small is too riskier though the return might be large. But it's a "You never know" kind of investment. I don't need my money to be in such place as at now.

Comparing such terms, mid capital is the easy choice because it is in-between. However, mid capital has the high potential for growth than both capitals. That allows gradual increase of wealth and steady growth.

  • Advantages choosing Mid Capital:

The main advantage is the potential growth. Since the risk is in-between, an investor can allocate the time to growth of the company, this will offer more liquidity . Also, proportionately investor will have the bigger portion of shares comparing to investing same money to the large capital.

  • Disadvantages choosing Mid Capital:

Despite the additional risk than the large capital, Mid capital suffers from liquidity constrains. The business can go off bankruptcy due to the smaller capital base and any crisis in the economy.

Homework Task (Question 3):

Thoughts on Risk Capital and Penny Cryptocurrency.

  • Risk Capital:
    Risk capital typically means high-risk, high-reward investments. Such investments should not be an impact to the investor's financial status or put your financial future in jeopardy. One of the key strategies for successfully investing risk capital is diversification, as to the famous saying, don’t put all your eggs in one basket.

  • Penny Cryptocurrency
    These are the cryptocurrencies that are worth between $ 0.02 and $ 0.0004. Hence literally you can buy a big stock of digital assets for a few pennies. Penny cryptos are considered to be an alternative type of investment that can be classified into 4 categories:

  1. Mining-based cryptocurrencies
  2. Stable coins
  3. Security Tokens
  4. Utility Tokens

When an investor invest he can expects for high returns from these cryptocurrencies as they will grow demand in the future. The best time to enter to the market when its newly-released, that time price will be low to attract many investors. However, growth is not guaranteed and their will be risk involvement as well, hence it is better to use the same strategy as the saying don’t put all your eggs in one basket again.

Homework Task (Question 4):

What is the Role of Watchlist? Best way to set Watchlist. Additionally, For Example, show your watchlist if you have configured it and give a short description of it.

Watchlist will help us to quickly navigate to the favorite coins we have booked marked earlier. It will help us to keep track in the coins selected.

------------------------------------------How to add cryptocurrencies to the watchlist------------------------------------

The easiest way to add your favorite coin to the Watchlist is to click the small start symbol in the left corner. By doing that it will add to the watchlist. Then you can simply check the coins selected in the watchlist tab.

------------------------------------------------------------My watchlist---------------------------------------------------------------

Thank you Steemit Team & @stream4u

#cryptocapital #stream4u-week6 #cryptoacademy #srilanka #steemexclusive #steemitblog


Hi @virajherath

Thank you for joining Steemit Crypto Academy and participated in the Homework Task 6.

Submission Of Homework Task 6 Post was between 15th March 2021 To 21st March 2021.

Review Visit Level
Task Remark
Guidance, Feedback, Suggestions
Verification (Done, Hold)
Good, explained very nicely.
All looks good.

Your Homework task 6 verification has been done by @Stream4u.

Thank You.
Crypto Professors : Steemit Crypto Academy

Yeah I'm late for the submission due to some work in my office, but wanted to finish this before submitting this week homework. Thank you for the rating.

You have been upvoted by @besticofinder,A Country Representative from SRI LANKA. we are voting with the Steemit Community Curator @steemcurator07 account to support the newcomers coming into steemit.