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What is the difference between free float market cap and free float in the context of cryptocurrency?

avatarKingsley YeboahDec 15, 2021 · 3 years ago7 answers

Can you explain the distinction between free float market cap and free float in the context of cryptocurrency? How do these terms relate to the valuation and trading of cryptocurrencies?

What is the difference between free float market cap and free float in the context of cryptocurrency?

7 answers

  • avatarDec 15, 2021 · 3 years ago
    Free float market cap and free float are two important concepts in the world of cryptocurrency. Free float market cap refers to the total market value of a cryptocurrency, calculated by multiplying the current price of the cryptocurrency by the number of coins or tokens in circulation. This metric provides an estimate of the overall value of a cryptocurrency and is often used to compare different cryptocurrencies. On the other hand, free float refers to the number of coins or tokens that are available for trading in the market. It excludes coins or tokens that are held by the project team, locked in smart contracts, or not actively traded. Free float is an important metric for assessing the liquidity and supply of a cryptocurrency. While free float market cap gives an indication of the value of a cryptocurrency, free float provides insights into the availability and trading potential of the cryptocurrency in the market.
  • avatarDec 15, 2021 · 3 years ago
    Alright, let's break it down. Free float market cap is like the total worth of a cryptocurrency, while free float is more about how much of that cryptocurrency is actually available for trading. Think of it this way: free float market cap is like the total value of all the shares of a company, while free float is like the number of shares that are actively being traded on the stock market. In the context of cryptocurrency, free float market cap is calculated by multiplying the current price of the cryptocurrency by the number of coins or tokens in circulation. Free float, on the other hand, excludes coins or tokens that are held by the project team, locked in smart contracts, or not actively traded. So, free float market cap gives you an idea of the overall value of a cryptocurrency, while free float tells you how much of it is actually available for trading.
  • avatarDec 15, 2021 · 3 years ago
    In the context of cryptocurrency, free float market cap and free float are two important metrics that provide insights into the value and trading potential of a cryptocurrency. Free float market cap represents the total market value of a cryptocurrency, calculated by multiplying the current price of the cryptocurrency by the number of coins or tokens in circulation. This metric gives an estimate of the overall value of a cryptocurrency and is often used to compare different cryptocurrencies. On the other hand, free float refers to the number of coins or tokens that are available for trading in the market. It excludes coins or tokens that are held by the project team, locked in smart contracts, or not actively traded. Free float is an important metric for assessing the liquidity and supply of a cryptocurrency. It provides insights into the availability and trading potential of the cryptocurrency in the market. Overall, both free float market cap and free float are crucial factors to consider when evaluating and trading cryptocurrencies.
  • avatarDec 15, 2021 · 3 years ago
    Free float market cap and free float are two key terms in the cryptocurrency world. Free float market cap refers to the total market value of a cryptocurrency, which is calculated by multiplying the current price of the cryptocurrency by the number of coins or tokens in circulation. This metric gives an idea of the overall value of a cryptocurrency and is often used to compare different cryptocurrencies. On the other hand, free float refers to the number of coins or tokens that are available for trading in the market. It excludes coins or tokens that are held by the project team, locked in smart contracts, or not actively traded. Free float is an important metric for assessing the liquidity and supply of a cryptocurrency. It provides insights into the availability and trading potential of the cryptocurrency in the market. Both free float market cap and free float play a role in understanding the value and trading dynamics of cryptocurrencies.
  • avatarDec 15, 2021 · 3 years ago
    Free float market cap and free float are two terms that you should know if you're into cryptocurrency. Free float market cap is the total market value of a cryptocurrency, calculated by multiplying the current price of the cryptocurrency by the number of coins or tokens in circulation. This metric gives you an idea of how much the cryptocurrency is worth in the market. On the other hand, free float refers to the number of coins or tokens that are available for trading in the market. It excludes coins or tokens that are held by the project team, locked in smart contracts, or not actively traded. Free float is important because it tells you how much of the cryptocurrency is actually available for trading. So, when you see a high free float market cap, it means the cryptocurrency has a high overall value, but if the free float is low, it might indicate that there's not much of the cryptocurrency available for trading.
  • avatarDec 15, 2021 · 3 years ago
    When it comes to cryptocurrency, free float market cap and free float are two terms you should be familiar with. Free float market cap refers to the total market value of a cryptocurrency, which is calculated by multiplying the current price of the cryptocurrency by the number of coins or tokens in circulation. This metric gives you an idea of the overall value of the cryptocurrency. On the other hand, free float refers to the number of coins or tokens that are available for trading in the market. It excludes coins or tokens that are held by the project team, locked in smart contracts, or not actively traded. Free float is important because it tells you how much of the cryptocurrency is actually available for trading. So, while free float market cap gives you an indication of the value of the cryptocurrency, free float gives you insights into the availability and trading potential of the cryptocurrency in the market.
  • avatarDec 15, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, explains that free float market cap and free float are two important concepts in the cryptocurrency world. Free float market cap represents the total market value of a cryptocurrency, which is calculated by multiplying the current price of the cryptocurrency by the number of coins or tokens in circulation. This metric provides an estimate of the overall value of a cryptocurrency and is often used to compare different cryptocurrencies. On the other hand, free float refers to the number of coins or tokens that are available for trading in the market. It excludes coins or tokens that are held by the project team, locked in smart contracts, or not actively traded. Free float is an important metric for assessing the liquidity and supply of a cryptocurrency. It provides insights into the availability and trading potential of the cryptocurrency in the market. Both free float market cap and free float play a role in understanding the value and trading dynamics of cryptocurrencies.