What is CoinMarketCap and What Does it Do? A Complete Guide For Beginners to CoinMarketCap.com

CoinMarketCap is the best and most reliable website if you want to know about what is happening in the cryptocurrency market. Acquired by Binance in 2018, CoinMarketCap was initially founded by Branden Chezz in 2013. Since then, it has established itself as the leader in providing real-time data on cryptocurrency markets. It tracks and provides information about cryptocurrencies as well as exchanges and NFTs.

It provides information about cryptocurrency prices, market capitalization, trading volume over the past 24 hours, and circulating supply in the market. It also tracks a cryptocurrency’s performance in the last seven days, providing a graph of how well that cryptocurrency performed.

Role of CoinMarketCap in Tracking Cryptocurrencies

CMC is a data aggregator website that uses various methods to calculate the market cap of a cryptocurrency. The market cap is calculated by multiplying the circulating supply by the price. It is the most important indicator of a cryptocurrency’s success. Different exchanges have different market capitalizations for a given cryptocurrency. CMC provides the market cap for a cryptocurrency by taking the average of the data collected from exchanges.

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It tracks over 8,000 cryptocurrency coins in real-time, as well as their latest prices and trading volume. Some of the most famous cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Tether (USDT) , Ripple (XRP), USD Coin (USDC), etc. It has also proved to be an important player in deciding the fate of various cryptocurrencies. The most famous incident was the reduction of XRP’s market cap when it removed some South Korean exchanges from the platform.

CMC Provides Information about Exchanges

CMC also provides information about cryptocurrency exchanges and has over 200 listed exchanges. It tracks trading volumes, weekly visits, number of coins, markets, and more. It also ranks the exchanges based on their performance. This is an important factor if you are new to crypto trading, as it provides detailed data that is updated constantly.

NFTs’ Listing Over CMC

NFTs are also listed in the collection section, and you can directly see the volume, number of owners, host platform, and performance cart of various NFTs. All in all, CMC is a market leader in real-time data about cryptocurrency markets, nfts and digital assets.

Can We Sell or Buy Cryptocurrencies Over CoinMarketCap?

You cannot buy or sell cryptocurrencies on CMC since it is not a crypto exchange. It is only a tool that collects and provides information about cryptocurrency markets. If you want to buy or sell a cryptocurrency, you can go to the exchange section of CoinMakretCap and select any exchange based on the data provided. The data provided in the exchange section helps you identify the best exchange for trading crypto. It helps you make better decisions by providing real-time information. Several of the matrices that it carries also have various fiat currencies supported by the exchanges.

Can We Trade through CoinMarketCap?

CMC is a research site that aims to provide better information and more data to users about crypto markets so that investors and traders can make better decisions. While it does not allow the trading of cryptocurrencies, it tracks more than 8000+ cryptocurrencies, enlisting their various properties as well as the graphical representation of their performance. It can be a reliable source to

Watch lists and Portfolios

The investment portfolio feature of CMC allows you to become a financial advisor. Enlist your favourite coins and track their progress over a long period. You can attach your portfolio to various documents and use it to monitor your investments. While you have the option of linking your portfolio, you cannot trade the coins or deposit money or coins on CMC.

CMC has various benefits including providing authentic information that helps you with your decision, especially if you are new to the crypto world.

Conclusion

All in all, it is a data collection site that uses various methods to collect information about cryptocurrency and provide you with real-time data on cryptocurrency markets. It does not sell, buy, or trade cryptocurrencies. It also does not provide any advice on the nature of markets or investing.