I would like to show the importance, of the coin capitalization, in investment result. I selected the Real Estate sector, as Real Estate, has it's problems, but it is the market, with the lowest volatility, of all markets. I will try to have a weekly update, so you can follow the progress.
I have selected three coins, that have a daily volume, over 50,000 USD. Checked out their site, that they invest in real estate, and here is the list.
- BreezeCoin, with 44.7 million USD Capitalization and daily volume of 117,754 USD
- Propy, with 3.7 million USD Capitalization and daily volume of 85,536 USD
- Max Property Group, with 0.403 million USD Capitalization and a daily volume of 68,344 USD
I will experiment with two scenarios, of investing 10,000 USD, on those three coins.
Scenario 1:
The highest capitalization, will get the most funds proportional to the capitalization as a percentage to the sum of all tokens. The lowest capitalization token will get the less funds.
- Breezecoin will get the most of the investment capital, 9,150 USD
- Propy will get 785 USD, from the investment capital
- Max Property Group will get 85 USD, from the investment capital
Scenario 2:
The lowest capitalization, will get the most funds proportional to the capitalization as a percentage to the sum of all tokens. The highest capitalization token, will get the less funds.
- Breezecoin will get 90 USD from the investment capital
- Propy will get 960 USD from the investment capital
- Max Propery Group, will get the most of the investment capital, 8,950 USD
I selected the two scenarios, so everyone can see, the change over time. An investor, can make a scenario, with any combination.
Scenario 1, purchased tokens:
- Breezecoin: 20,149 coins (9,150/0.4541)
- Propy: 10,012 coins (785/0.0784)
- Max Propery Group: 25,757 coins (85/0,0033)
Scenario 2, purchased tokens:
- Breezecoin: 198 tokens (90/0.04541)
- Propy: 12,244 coins (960/0.0784)
- Max Property Group: 2,712,121 tokens (8950/0,0033)
The prices used, are the prices of the day of writing this article (11 December 2019), on coinmarketcap. I will try to keep a weekly update, so we can see the difference, of the investment selections, and the risk, this involves.