"Money is a fairy, a Buddha, the resilience of greed, a measure of humanity", this is an oral saying that I heard since childhood. The issue of money causes a lot of controversy in every discussion in life. Today let's discuss this issue and cash flow in the Crypto market. It's a bit long, so please try to read it.

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📌 1. SOME BASIC DEFINITIONS

✍️ In life, money is considered a measure of human value. For realism, having money is having everything, this is really a problematic and very unreasonable idea. To talk about this deeply, it will easily touch the pride of some people, so here I will only evaluate from a multi-faceted perspective based on my own knowledge and experience, so I will not go in-depth. into each person's personal story. So what is money?

✍️ Money is a tool created by humans because of human needs since ancient times. It is used to satisfy human ambition and, more specifically, to serve as a reference system for consensus conversions. When people want to buy/sell, exchange, or transfer both tangible and intangible forms, they will use money as a measure for that conversion. Money includes several types as follows:

- Fiat (paper money, traditional money)

. In modern life, fiat includes two types: local currency and foreign currency. Local currency is issued by the top apparatus of a country, a territory or a federation of countries. Over time, fiat will be changed in appearance. In Vietnam, we used to have many types of local currencies such as coins, paper money and now polymer money. Foreign currency is the domestic currency of another country or territory that is circulated and used around the world such as USD, EURO, Japanese Yen, Yuan, etc. Conversion between foreign currencies is the same. Approved by competent authorities with high knowledge of finance, then transmitted to people for conversion. Fiat is also the currency with the highest and almost absolute liquidity. Why almost? Due to some problems between countries, sometimes one country will prohibit people from using the other country's fiat, so absolute 100% liquidity worldwide is impossible.

- Electronic money

. This is a currency that is confused with Crypto because the vast majority have not really learned about the difference. Electronic money is money on banking apps, asset valuation numbers on banks, or transaction amounts on stock exchanges. To put it more simply, cryptocurrency is fiat with digital technology. This type of currency has lower liquidity than fiat. You will wonder why money from your pocket going into the banking app has lower liquidity than cash, right? Just try walking around the street and find a sidewalk shop to make a cup of iced tea for 5k, then ask to pay by bank transfer, and the shop owner curses so you understand the problem immediately 🤣🤣🤣

- Cryptocurrency - Crypto Currency

. The type of money that everyone in this group is interested in and owns (more or less depending on each person's wallet). The essence of Crypto is lines of code, people use programming language and technological capabilities to encode those lines of code into an asset, even BTC is no exception. Crypto is a combination of gold (scarcity), stocks (projects to issue coins listed on the exchange similar to businesses issuing shares listed on the exchange), and fiat (type of asset for consensus conversion). ). Because of this integration, I am sure that this market will grow even stronger. No need for in-depth analysis, just look at all other financial markets and see that, historically, in the long run there is only growth no matter how volatile the market is.

- Virtual money

. This is the least liquid and riskiest currency. It is easiest for anyone who has ever gambled on example apps to understand. You deposit money into the gambling app, it converts you to an equivalent currency used to play, which is virtual money. You guys also have a more understandable example: when you go shopping or hunt for sales, you get vouchers or loyalty cards, that's also virtual money. This type of currency is only available within a narrow range where the issuer is the head of a certain company or business. You cannot bring this currency to the same area to use, for example, a voucher from this shop cannot be used for another shop. Because of these weak properties, it carries great risks. Also a currency that is confused with Crypto.

📌 2. MONEY IN CRYPTO MARKET

✍️ In the Crypto market, to trade we all know that we must convert from fiat, cryptocurrency to three main coins: stablecoin, BTC and ETH. There are also forms of direct conversion to other altcoins such as P2P or funds that give money to the project and receive back the agreed amount of tokens.

✍️ Currently, currency and coin conversions before and after transactions, if the amount is small, users will process it directly on the exchange. If it's big, then P2P and P2P have many ways. Based on that, some individuals or organizations open P2P services and earn a lot of money through consensus differences. That is for stablecoins, but for BtC and ETH it will be more difficult. Because if the person holding BTC and ETH has enough tokens to convert at the time of DCA or their trade plan, it is unlikely that they will be willing to convert, so there will be inadequacies.

✍️ Every time an amount of money is poured into any project, it will directly impact the market, whether big or small. Except for other larger values, in the end what the vast majority aim for in this market is profit. But profits are converted into money. And how will the cash flow in this market work? Join me in part three.

📌 3. CRYPTO CASH FLOW

✍️ In a financial market, in addition to the backing team - MM, political and military news, economic indicators, cycles and processes, cash flow is one of the most important factors. cause fluctuations in the market. In terms of macro, when there are bad changes in society such as war or epidemic, the main flow of money will flow to the gold market, a few others will flow to Crypto, the rest like real estate or stocks will all dry up. clause. Even the interest rates announced by the FED have a huge impact. For example, when interest rates increase, cash flow from financial markets will be withdrawn to banks to make profits more safely (that is the principle of inequality). documents of individuals or organizations with really large cash flows, not just a few tens of billions of VND. When interest rates decrease, the cash flow is withdrawn to invest in economic and business development first, then poured into large financial markets with higher liquidity and safety than Crypto, and then added. Add some new reasons to pour money into Crypto. That is the rule of cash flow throughout the financial market. Applying the formula of not dividing eggs in one basket, we have trading tips according to macro cash flow (only suitable for medium and long term).

✍️ For Crypto, we have a rule of cash flow from past to present that will be fiat -> BTC -> top coin -> mid cap -> low cap -> meme and shitcoin and then back to fiat. From that rule, tips for trading according to cash flow are formed. However, in reality that is not necessarily the case. Digging a little deeper, I realized that the cash flow rules will be in this order:

- Fiat -> BTC -> Fiat (1)

- Fiat -> coin top -> fiat (2)

- Fiat -> mid cap -> fiat (3)

- Fiat -> low cap -> fiat (4)

- Fiat -> meme and shit coin -> fiat (5)

* It is worth noting here that sometimes MM will follow the above order correctly, but sometimes the order will be reversed without logic depending on the time and INSPIRATION of MM and users. So when is the correct procedure and when is it not? Uptrend is often correct, downtrend is bad luck. At this point, perhaps you have realized what tips for trading with cash flow are like.

✍️ Another perspective that shapes money flow trading tips is the ecosystem. When money flows into a project, the projects in its ecosystem will enjoy a share. For example, if the flow of money into ETH causes ETH to increase in price, projects within the ETH ecosystem or areas directly related to ETH will all increase accordingly (depending on more or less). Personally, when ETH upgraded to Merge, the ecosystem's growth was a very small pace slower than ETH. I checked everything and found that ANKR had not increased. I was confident in placing orders on Kucoin and winning. x4 orders in two days, because I didn't take a screenshot last year, but my Kucoin account changed phones this year so there's no more specific evidence data for everyone to see. This is an extremely simple trade tip but requires keeping up with cash flow.

✍️ Another very hot money flow trading tip recently is Upbit's volume and the antics of giant DWF. For any project volume where Upbit floor is higher than other exchanges and accounts for more than 50% of the total project volume in the entire market, 80% of that coin pumps. Or if DWF has a signal to invest or transfer any coin, it will pump in about 1 week to 2 months. From there, it can be deduced that by tracing these two aunts, we already have another trading tip.

✍️ The above money flow trading tips are based on the principle that "a rising tide lifts all boats". Everyone can test and feel for themselves. However, the market has changed, for example, there are all Binance products and cap of tens of millions, but only ID has been pumped slightly and MAV is not getting anywhere. This is similar to the cash flow rule in the downtrend season mentioned above.

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In addition to understanding and deducing trading tips based on cash flow, the necessary and sufficient condition is to closely follow the market, continuously update news, check on chain, and evaluate macro. Depending on taste, each tip will be suitable for each person.

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Thank you for reading!