"The two most valuable cryptos I own are bitcoin and Ethereum. This is largely due to the fact that I transfer profits from higher-risk coins to reserve assets. By hunting low cap coins, I continue to make my biggest gains. Cashing out $10,000 into a 100X low cap can purchase a lot of bitcoin that’s how Lark reveals his portfolio maintaining strategy," crypto investor and YouTuber influencer Lark Davis said.
And that’s the basics of crypto we know how the money circulates in the crypto market.
The Fiat Money Flow Cycle is the first step in the Crypto Money Flow Cycle. As more people invest a percentage of their income or savings in Bitcoin, the asset's value will climb.
When the price of Bitcoin climbs, it is at this moment that investors are making enough money to start thinking about how they may increase their wealth. Investors acquire an increasing desire for a larger return on their cryptocurrency investment during Bitcoin uptrends.
As a result, they aim to diversify their holdings by investing in altcoins like Ethereum. Ethereum is the foundation for many smaller Altcoin initiatives, which is why Ethereum is frequently cited as a leading indicator for gains in the value of lesser Altcoins.
Small-cap altcoins are high-risk, high-reward investments that often rise massively near the end of the Crypto Money Flow Cycle.