What is Your Crypto Really Worth? How To Valuate Crypto Assets

Juli 1, 2022 Opetcharle 0 Comment


Customers can be prioritized calculate token priced on the number of tokens they hold and the number of days the tokens are held. The Crypto Investment Calculator by CoinStats will make your calculations of crypto profits and losses significantly easier and faster. With this straightforward tool under your belt, you can successfully plan your investments or even daydream about the profits you could make if you had invested in Bitcoin or another coin some time ago. Market capitalization is the term used to describe the total value of a currency or asset after considering supply and pricing. Market capitalization, more often called market cap, is one of the most reliable indicators to measure and keep track of the market value of cryptocurrency.

The unit of measurement of calculate token price is ‘Satoshi’, which was named in honour of the founder of Bitcoin, Satoshi Nakamoto. A satoshi represents the smallest unit of a Bitcoin and there are 100,000,000 satoshis per one bitcoin. Assume that you have bought a coin that is worth $0.20 each, and it doubled in value to $0.40. You would feel ecstatic to have doubled your initial investment, or a return of a 100%.

How To Calculate Cryptocurrency Market Cap?

Token velocity is a calculated measurement that is necessary to understand before successfully launching an Initial Coin Offering or Token Generation Event . Velocity influences the long-term, non-speculative value of a token. Therefore, we must understand how velocity works, including the calculations and math behind token applications. By understanding key elements of token velocity token issuers are better prepared to implement strategies to manipulate token velocity for a healthy, long-term utility token marketplace. To calculate the crypto market cap, you must multiply the Circulating supply by the price of one unit .

Yep, wallets and exchanges provide you APIs which if you use to connect to various tools created to calculate your crypto profits and losses, you will get results automatically. Just make sure to connect your portfolio to verified tools which will guarantee accuracy and security. The crypto market cap calculator’s comparison tool is extremely useful for comparing your token’s market cap relative to another coin’s market cap. The crypto market cap calculator helps you discover what the price of your token would be at another coin’s market cap easily. The crypto calculator automatically updates related fields and values upon input for increased user experience. For instance, entering a crypto price prediction updates the values for new market cap, multiplier, new value, new rank, and more.

What is cryptocurrency market capitalization?

This is the easiest way to calculate your gains as you will be aware of the value of coins you’re buying with your domestic currency. For example, if the current price of Bitcoin is USD $10,000 and you’re planning to buy USD $1,000 worth of Bitcoin, you’d get 0.10 BTC for your USD $1,000. If the price of a Bitcoin goes up 50% to USD $30,000 each, then your BTC has also increased by 50%, thereby valuing your 0.05 BTC at a great USD $1,500. You would get a profit of USD $500 if you sold all your BTC and cashed-out your investment. To know the market cap of popular crypto currencies you can use websites like CoinMarketCap where they provide enough data about a coin or a token.

  • Your portfolio’s new value will be updated with the respective valuation.
  • Saying that, here are a few measures to help launch a better campaign.
  • Cryptocurrency Market Capitalization or Cryptocurrency Market Cap is an indicator that measures and keeps track of the market value of a cryptocurrency.

The market cap indicates the dominance, popularity, and value of a cryptocurrency. Cryptocurrencies with larger market caps are usually more popular and dominant in the market, such as Bitcoin and Ethereum. Slower token velocity helps to relieve the potential pump-and-dump rampant in initial coin and token offerings. To create a successful token offering, there must be a reason for token holders to maintain token ownership for an extended period.

What is the investment Calculator?

To calculate the crypto price, divide the total market value by the number of coins in circulation. Cryptocurrencies are categorized into large-cap, mid-cap, and small-cap groups based on their market cap size. Large-caps are cryptocurrencies that are in the top 10 by market cap. They are well-established, with market capitalizations of $10 billion or more.

Edit the circulating supply input with alternative values to automatically calculate the new price . The circulating supply feature is useful for understanding how your portfolio is impacted by a token release schedule. Any change to the BTC price or market cap inputs will automatically display the coin’s new rank. All information/data provided on our website is only for general information.

Auto Market Data Refresh

Independently created cryptocoinage have limited functionality compared to tokens. An internal verification of the compliance of volumes in the base currency and quote currency is carried out for each exchange, for each pair . If the pair fails the test, it is not used for further calculations.

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If they circulate 100 times, then the collective coins are worth $1 billion. Thus, understanding and calculating the velocity in any token economy is extremely important. With tokens that people do not hold, velocity increases linearly with transactional value. Even if transaction value grows tremendously, network value XLM https://www.beaxy.com/ could remain unchanged. ICO and TGE developers should incorporate mechanisms that encourage holding to appreciate the long-term function of the token.

They may have more potential for growth than large-cap cryptocurrencies, but they also carry a higher level of risk due to their lack of stability and track record. Remember the token you’ve created has no value until the Liquidity Pool is provided hence it uses what you provide to determine the initial price. When you provide liquidity, you provide the 2 assets to which Pancakeswap will determine as equals. This should be your token and a certain amount of BNB or a stablecoin. Personally I believe in a balanced approach that somewhat marries the two.

  • The locked tokens cannot be sold or transferred for a certain period.
  • This tool is for users who are looking to estimate market cap of such crypto assets.
  • In order to calculate these amounts, a contract must look up the current reserves of a pair, in order to understand what the current price is.
  • If you are planning on having presales, you need to know what the initial price on an exchange will be as you don’t want to disadvantage your presale investors by messing up the initial price.
  • As stated above, understanding and calculating the velocity in any token economy is a critical factor in assessing long term sustainability and risk of any given token project.

If there are 1 million coins in circulation and if its current price per coin is $1 then its total market cap is $1,000,000. You might know how to price your Room Purchasables with tokens, but how should you price them if you’re selling them with your own Room Currency? This calculator helps you determine the token value of your Room Currency to help you set prices to make sure you’re getting the most earnings from your Currency Packages. Different cryptocurrency projects have different inflationary models, for example, bitcoin’s inflation rate drops sharply every 4 years due to halving. Some may even be deflationary, like Binance coin which has reduced supply due to coin burn every quarter.

This method of calculating your trades takes into account the opportunity cost of holding on to Bitcoin as opposed to using your BTC to purchase other altcoins. Seeing value in an ICO is looking at the token velocity and the duration investors will be able to hold the tokens. As stated above, understanding and calculating the velocity in any token economy is a critical factor in assessing long term sustainability and risk of any given token project. In order to solve for token price, one must calculate M, by working out the size of the market in dollars , divide it by the velocity and then divide M by the number of coins in supply.


In a much easier process, firms can follow a standard template on the blockchain to create their own tokens. Programmable computer codes called smart contacts allow tokens to operate without the need of third parties. Actually, that’s one of the integral purposes of CoinStats – We’re actually #1 in the world by the number of integrated wallets and exchanges! By connecting your wallets and exchanges, you can receive timely calculations and alerts about your portfolio’s ups and downs.

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