Elevator Concept in Crypto Asset Trading, How It Works

Liquidity is one of the most important factors in the crypto market . Liquidity refers to how easily an asset can be bought and sold without significantly affecting the price. Elevator Concept helps investors understand liquidity movements in the crypto market. This concept explains that liquidity flows from one asset to another, based on market capitalization and the accompanying narrative .

What is the Elevator Concept?

Elevator Concept is a concept or framework that helps you understand the movement of liquidity (money flow) in the crypto market. Like an elevator moving vertically in a building, the Elevator Concept describes how liquidity flows from one asset to another, based on market capitalization and the accompanying narrative .

Also Read: Moonbag Crypto: What is it and what is the strategy?

Understanding the "elevator concept" in the Crypto Market

Imagine a building with three floors:

Lantai 1: Big Shots (Bitcoin, Ethereum)

• Giant assets with the largest market capitalization such as BTC, ETH
• Considered "safe" and stable, suitable for long-term investment.
• Moderate profit potential.

Check How to Buy BTC & ETH

Floor 2: Rising Stars (Mid Cap Assets)

• Assets that follow in the footsteps of Big Shots, but are more dynamic
• Requires proper analysis and timing to gain profits.
• Suitable for the "swing trading" strategy (short-term buy-sell).

Floor 3: High Risers (Small Cap Assets)

• Assets with exponential profit potential.
• High risk, suitable for brave and experienced investors.
• Diversification is very important to minimize risk.

Also Read: What is Super Megacycle & Its Impact on Crypto & Bitcoin

The Power of Narrative: Stories That Move Elevators

Every crypto asset has a narrative, a story that explains its vision, technology, and utility. A compelling and powerful narrative is like an elevator caller button, attracting investors and pushing asset prices up. Pay attention to the narratives that are trending in the market!

Simulation: Riding an Elevator with BTC (Bitcoin)

Suppose you see Bitcoin (BTC) on the 1st floor being "hot" due to a new technology update. You can choose a strategy:

• Main Market: Buy and hold (HODL) BTC for the long term, enjoying relative stability.
• Secondary Market: Use technical analysis, buy BTC at the right time, sell when you reach your profit target.
• Exotic Market:  Choose an interesting DeFi project on the 3rd floor, diversify with small capital, and prepare a brave mentality!

Elevator Concept: A Guide to Crypto Success

Elevator Concept is not a guarantee of profits, but it helps you understand market flows and choose appropriate strategies. Always remember to:

• Be patient:  The money movement cycle rotates, don't rush FOMO (fear of missing out).
• Diversification:  Spread investments across different “floors” to minimize risk.
• Risk Management:  Use stop-loss to limit losses.
• Keep Learning:  Crypto market is dynamic, keep updating knowledge and strategies.

With Elevator Concept as your compass and discipline in your strategy, you are ready to conquer the crypto rollercoaster and achieve your investment goals.

How To Buy Crypto from Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia and is officially registered with Commodity Futures Trading Supervisory Agency, commonly abbreviated as CoFTRA (BAPPEBTI) 

To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Read Also:

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.