There are many different tools you can use to trade effectively, and we are going to give you an inside look at the top 3 that can help make you a more informed trader.

  1. Market Capitalization
  2. Volume
  3. Circulating Supply

There are multiple factors to consider when making market and trading decisions. Amplify Brokerage provides information for three of the main indicators of a coin’s health and frequency of trading right in the platform for you to make the most informed decision when executing your commission-free trades.


Market Capitalization

Okay, let’s start with Market Capitalization. So, Market Capitalization also known as Market Cap is the total number of coins circulating of a given coin multiplied by the price of the coin. Market Cap can be an excellent tool in knowing how much risk will be involved when you are trading a token.

There are 3 different Caps in Cryptocurrency. They are usually divided between Large, Medium, and Small Cap.

Large Cap Coins

So, looking at large Cap, you have Bitcoin, Ethereum, and Ripple which present the least amount of risk. The coins growing to a certain size, however, will limit their potential growth. Usually, these Cap Cryptocurrencies classify with more than a $10 Billion Market Cap.

Medium Cap Coins

Moving onto a Medium Cap, you have EOS, Bitcoin Cash and Monero. These may be known as established coins but there is still market Volatility. So, with Medium Caps, they classify between $1 and $10 billion.

Small-Cap Coins

Finally, you have Small Cap. These coins inherently present more risk because of their potential failure. While one smaller cap coin may sell at a lower price, you’re still buying into less value. However, these cryptocurrencies have more of a potential for growth and when they do you can yield a tremendous reward.

Take, for example, a small-cap coin may only be valued at USD 1.00, compared to a medium cap token valued at USD 100.00, and then compared to a large-cap token like Bitcoin Valued at the time of writing this over $7,000.00. The smaller value of the small-cap coin means it’s easier for a small-cap coin to double in value, as it would only need to gain $1.00 of value versus gaining $100.00 or $7,000.00 to do so.


This goes into the next indicator: Volume. Volume is the amount of a coin that has been traded in the last 24 hours. This can demonstrate the health of the coin, and the value that other traders are placing on recent moves in the market. For example, if a token drops in price, but the value remains low, it can imply that the traders may be speculating the value to stabilize or even rebound.

Circulating Supply

Finally, the 3rd indicator is Circulating Supply. Circulating supply can be used as an indicator of value, as cryptocurrency on a market or exchange is subject to the balance of supply and demand. Circulating Supply is best known as the Estimation on the number of coins that are in the market and the general public hands. Because of this, it can be used as the standard measure instead of the Total Supply, as some percentage of the Total Supply also includes coins that are locked, on reserve, or just generally not for sale, and as such the coins that are not for sale cannot affect the value of the token.

This is why many coins are subjected to buyback and burn campaigns to help stabilize the value by taking some coins out of circulation and reducing the volume. A coin with a high volume that is not subjected to a burn campaign can be more easily impacted by inflation and devaluation.

Closing Statement

We want our users to always be well informed with the market. Whether you are just getting started in crypto or you’re a pro, these helpful tools available in our platform. Will ensure you are always making the best decision when it comes to our commission-free trading.

Please keep in mind that information presented by Amplify Exchange is not and should not be considered investment advice. Traders should make their own decisions about investment strategies and whether or not they are right for their independent portfolios based on personal risk tolerance and financial means before entering a transaction. When in doubt, consult with a financial professional. Amplify Exchange and the Amplify Brokerage platform is not liable for the risk inherent in cryptocurrency trading.