**📝 Definition:**

Market cap, short for market capitalization, is a way to measure the total value of a cryptocurrency.

To find how much a cryptocurrency is worth, you multiply the price of 1 coin by the total of coins that exist for this crypto.

**🔑 Key Features:**

**Total Value**: Shows how much the entire cryptocurrency is worth.**Simple Calculation**: Market cap = Current price of one coin x Total number of coins.**Ranking Tool**: Helps rank cryptocurrencies by size and popularity.**Indicator of Size**: A bigger market cap often means the cryptocurrency is more popular and widely used.

**⚙️ How It Works:**

**Find Current Price**: Look at how much 1 coin is worth right now.**Total Supply**: Find how many coins exist.**Multiply**: Multiply the price of 1 coin by the total number of coins to get the market cap.**Compare**: Use market cap to compare the size of different cryptocurrencies.

**💡 Applications:**

**Investment Choices**: Helps investors decide which cryptocurrencies to invest in.**Market Ranking**: This shows which cryptocurrencies are the biggest and most popular.**Risk Check**: Helps understand the risk level of investing in a certain cryptocurrency.**Portfolio Building**: It can be a good measure to choose a mix of different cryptocurrencies to invest in.

**🔍 Example:**

Think of a box of candies.

If each candy is worth $1 and there are 100 candies in the box, the total value (market cap) of the candies is $100.

In the crypto world, if one coin is worth $10 and there are 1 million coins, the market cap is $10 million.