What league does your crypto play in? The quick guide to market capitalizations

Do you want to know if that coin your buddy recommended is “safe” or just a gamble? The answer lies in its market capitalization. Let me explain it to you without too much fuss:

Big Boss (Mega Cap) - More than $10B

BTC and ETH are the Messi and Cristiano of crypto. They have been in the game for years, all exchanges have them, plenty of liquidity. Enter and exit without drama. The safe strategy, but with less upside. Bitcoin and Ethereum are your best bets if what you are looking for is to sleep peacefully.

The promising (Mid Cap) - Between $1B and $10B

Here is the interesting part: Litecoin, Cardano, Monero. Coins that have already proven their worth but still have room to grow. The risk is greater than in mega cap, but the potential for profits is also higher. Perfect for diversifying without going all-in on risky investments.

The playful (Small Cap) - Between $100M and $1B

Pure volatility. Dogecoin is the classic example: it can skyrocket 200% in a week or drop just as much. There's a lot of potential for quick gains, but also for losing everything. Only if you can withstand the sharp changes.

The roulettes (Micro Cap) - Less than $50M

Cryptos fresh out of the oven, from anonymous developers or small groups. The risk is maximum. Some will explode, others will disappear. Only money that you are willing to lose.

The moral: There is no “best”, there is what fits your risk. You want safety → mega cap. You want growth → mid cap. You are brave ( or reckless ) → small/micro cap.