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What is the difference between the float and the outstanding shares in the context of cryptocurrencies?

avataralexhsubDec 16, 2021 · 3 years ago6 answers

Can you explain the difference between the float and the outstanding shares in the context of cryptocurrencies? How do these terms relate to the trading and ownership of cryptocurrencies?

What is the difference between the float and the outstanding shares in the context of cryptocurrencies?

6 answers

  • avatarDec 16, 2021 · 3 years ago
    The float refers to the total number of shares of a cryptocurrency that are available for trading in the market. These shares are not held by insiders or restricted from trading. On the other hand, outstanding shares represent the total number of shares issued by a cryptocurrency project, including those held by insiders and restricted from trading. The float is a subset of outstanding shares, as it only includes the shares available for trading. Understanding the difference between float and outstanding shares is important for investors and traders to assess the liquidity and market dynamics of a cryptocurrency.
  • avatarDec 16, 2021 · 3 years ago
    Imagine you're at a party and there's a bowl of candies. The float is like the candies that are available for everyone to take. It doesn't include the candies that are already in someone's pocket or the ones that are off-limits. Similarly, in the context of cryptocurrencies, the float represents the shares that are available for trading, while outstanding shares include all the shares issued, regardless of their availability for trading. This distinction helps investors understand the supply and demand dynamics of a cryptocurrency.
  • avatarDec 16, 2021 · 3 years ago
    In the context of cryptocurrencies, the float refers to the number of coins or tokens that are actively traded on the market. These are the coins that can be bought and sold by investors. On the other hand, outstanding shares include all the coins or tokens that have been issued, including those held by the project team or locked in smart contracts. The float is a subset of outstanding shares, as it represents the coins that are freely available for trading. Understanding the difference between float and outstanding shares can help investors gauge the liquidity and potential market impact of a cryptocurrency.
  • avatarDec 16, 2021 · 3 years ago
    At BYDFi, we believe in providing transparent information to our users. In the context of cryptocurrencies, the float refers to the number of coins or tokens available for trading on the market. These are the coins that can be freely bought and sold by investors. Outstanding shares, on the other hand, include all the coins or tokens that have been issued, including those held by the project team or locked in smart contracts. It's important for investors to understand the difference between float and outstanding shares to make informed decisions about their cryptocurrency investments.
  • avatarDec 16, 2021 · 3 years ago
    The float and outstanding shares are two terms commonly used in the context of cryptocurrencies. The float represents the number of coins or tokens that are available for trading on the market, while outstanding shares include all the coins or tokens that have been issued. The float is a subset of outstanding shares, as it only includes the coins or tokens that are freely tradable. This distinction is important for investors to assess the liquidity and market dynamics of a cryptocurrency before making investment decisions.
  • avatarDec 16, 2021 · 3 years ago
    When it comes to cryptocurrencies, the float refers to the number of coins or tokens that are actively traded on the market. These are the coins that are available for buying and selling. Outstanding shares, on the other hand, include all the coins or tokens that have been issued, regardless of their availability for trading. By understanding the difference between float and outstanding shares, investors can gain insights into the liquidity and market conditions of a cryptocurrency, which can help inform their investment strategies.