Ideal Money Flow Scenario in the Crypto Market: From Bigcap to Shitcoin

The crypto market always operates in cycles, and the money flow in this market also has a clear journey through each stage. Understanding the trend and allocating the funds reasonably not only helps investors optimize profits but also minimizes risks. Below is the ideal money flow scenario in a crypto market cycle:

1. Bigcap Phase: Secure Platform Featured list: $XRP, $TRX, $HBAR, $ADA, $XLM...Characteristics: This is the beginning of the money flow. Bigcap coins are usually the haven for large capital flows due to high liquidity and less volatility compared to altcoins. This phase plays a role in building a solid foundation for the market. Strategy: Focus on safe assets, suitable for long-term investors or large organizations.
2. Spread to Layer 1 and Bluechip Altcoin Prominent list: $SOL, $AVAX, $NEAR, $DOT, $DOGE, $SAND...Features: When the market stabilizes at Bigcap, attention shifts to strong Layer 1 projects and altcoins that have a solid position in the industry. These projects often come with a diverse ecosystem and long-term development potential.Strategy: Invest in coins with high real value, taking advantage of the growth wave of Layer 1.
3. Breakthrough with Layer 2 & DeFi potential Featured list: $OP, $SUI, $TAO, $TON, $STRK, $ONDO, $EIGEN...Characteristics: As Layer 1 develops, the focus is gradually shifting to Layer 2 - the Ethereum scaling solutions and the new generation of DeFi projects. These projects often leverage new technology to address issues related to speed, transaction fees, and user experience. Strategy: Prioritize projects with advanced technology, strong teams, and real-world applications.
4. Midcap DeFi & RWAs: Market Explosions Typical categories: $VELO, $CETUS, $IO, $CPOOL, $ALT, $ETHFI... Characteristics: At this stage, midcap projects with real-world assets (RWAs) products and applications begin to attract large cash flows. This is the time when the market becomes most active. Strategy: Allocate capital to projects with sustainable business models, stable revenue generation capabilities.
5. AI, GameFi and Modular: Leading Trends Featured tokens: $PIXEL, $WLD, $TIA, $SAGA...Characteristics: After the Midcap boom, funds have shifted to strong trend sectors such as artificial intelligence (AI), blockchain games (GameFi), and modular blockchain infrastructure (Modular). This is where projects leverage the FOMO effect to create waves.Strategy: Look for projects with unique ideas, innovative teams, and strong communities.
6. Meme & Lowcap: The final heat Featured list: $PEPE, $BOME, $DOGS, $PNUT, $TURBO...Characteristics: Meme coins and Lowcap projects are where the money becomes the riskiest. These projects often explode based on community hype or a 'viral' story. Strategy: Participate with a small capital and be ready to exit quickly when the market shows signs of cooling down.
7. Shitcoin and Dexcoin: End of the cycle Characteristics: This is the final stage when funds move to ultra-low-cap projects (Shitcoin) and decentralized exchange tokens (Dexcoin). The market now becomes extremely volatile and risky. Strategy: Limit investment, focus on capital recovery and profit protection. Endgame: The market's pinnacle Signs: Uncontrolled price increase, all projects can "fly" without any real reason. Risks: Market money dispersion, high profit-taking pressure, and a high risk of collapse. Actions: Gradually exit the market, transfer capital to safe assets or stablecoins to wait for new opportunities. Conclusion Understanding the capital flow in the crypto market is the key to seizing opportunities and limiting risks. Adhering to a reasonable investment strategy in each phase not only helps you make a profit but also protects your assets from harsh fluctuations. Always adhere to the principle: Do not invest based on emotions, invest based on cycles and plans!