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# How To Calculate The Price Of Bitcoin & Altcoins

Price

The prices you see on all crypto’s at coinmarket is the average price, collected from all exchanges that are buying & selling. For an example: You see the coin on 2 exchanges for the price of 2\$ and 3\$ on 2 other exchanges, the value is estimated to be 2.50\$. 2+2+3+3 divided by 4 total exchanges.
Total current market cap

The current market cap for a coin is only a factor if you are trying to estimate how high you think a coin will reach in value per coin. Say, for instance, you want to check how high a crypto can get in price after 1 year.
Example: The current market cap is 500 Million. The current number in circulation is 20 Million. Divide the current market cap by the coins in circulation and you get 25\$ per coin.With that in mind lets say the coin you believe in ,will reach a market cap of 2 Billion in the next year, so the market cap is a tool that use to determine how much money you would make if you bought at \$25.

Lets say the market cap is hitting 2 Billions divided by the current coins in circulation 20 million. That gives you 100\$ per coin and if you bought for 500\$ ,while each crypto was 25\$ (25*20 coins=500\$) You will have 2000\$ in return. Minus your initial investment which is 500\$, this gives you 1500\$ profit. 3x more than your initial investment.

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