📘 Crypto Guides & How-To Course
Step 11 of 16
In this step, you’ll learn why coin price alone means nothing — and why many beginners lose money by chasing “cheap” coins.
This lesson will help you:
- Avoid hype traps
- Understand real value
- Think like a smart investor (without trading)
⬅️ Previous: Step 10 – How to Read a Crypto Chart
➡️ Next: Step 12 – Supply, Circulating Supply & Max Supply Explained
If you’ve ever thought this, you’re not alone:
- “This coin is only $0.01 — it can go to $1!”
- “Bitcoin is too expensive, I missed it.”
- “Cheap coins have more upside.”
👉 This is one of the biggest beginner mistakes in crypto.
Let’s fix it — once and for all.
🚨 The Biggest Myth in Crypto
A coin’s price does NOT tell you how expensive or cheap it is.
Price alone is meaningless.
What actually matters is Market Capitalization.
🧠 What Is Market Cap? (Simple Explanation)
Market Cap = Coin Price × Circulating Supply
That’s it.
No complexity. No jargon.
Example:
Coin A
- Price: $1
- Supply: 1 million coins
- Market Cap: $1 million
Coin B
- Price: $0.01
- Supply: 10 billion coins
- Market Cap: $100 million
👉 Even though Coin B looks “cheap,” it’s actually WAY bigger.
💡 Why “Cheap Coins” Are Usually Not Cheap
Here’s the truth most people don’t realize:
- Cheap price ≠ cheap investment
- High supply limits upside
- Massive market caps require massive money to grow
For a coin to 10×, billions of dollars must enter the market.
That’s not easy — or guaranteed.
📉 Why Beginners Lose Money Here
Most beginners:
- Ignore supply
- Ignore market cap
- Focus only on price
- Fall for social media hype
Scammers LOVE cheap-looking coins because they sound exciting.
🔐 Think Like a Smart Investor (Not a Gambler)
Instead of asking:
❌ “How cheap is this coin?”
Ask:
✅ “What is its market cap?”
✅ “How much can it realistically grow?”
✅ “Does this solve a real problem?”
This mindset alone puts you ahead of 90% of beginners.
🧾 Quick Rule of Thumb
- Price tells you nothing
- Market cap tells the story
- Supply tells you the limits
If you remember ONLY that — this lesson did its job.
✅ What You’ve Learned in Step 11
✔ Why coin price alone is misleading
✔ What market cap really means
✔ Why “cheap coins” trap beginners
✔ How to think more rationally about value
➡️ Next Up: Step 12 – Supply, Circulating Supply & Max Supply Explained
This builds directly on what you just learned — and makes everything click.
🔥 You’re doing this the RIGHT way.
No hype. No shortcuts. Just real understanding.