This content was created by Alexander Lorenzo. This content was uploaded by Alexander Lorenzo. This is a YouTube video titled "THIS ONE PRINCIPLE MADE ME MILLIONS OFF CRYPTO" (created 2025-12-21). It is a solo explanatory commentary about cryptocurrency trading that focuses on the concept of liquidity as the primary driver of extreme percentage price moves. The speaker argues liquidity is more than ease of conversion to cash — low initial liquidity to later high liquidity explains outsized gains (citing Shiba Inu, BNB), and demonstrates with liquidity-pool examples (e.g., a $100K pool can be doubled with ~$20K buy vs $100M needing ~$20M). The video presents a trading strategy: target projects with low liquidity but strong demand potential, credible teams, and a compelling narrative, and frames fundamental analysis around liquidity, narrative, and credibility. Content type: YOUTUBE.
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The single most important principle to make the most money off of cryptocurrency. I could pretty much boil my entire career down to this. This has made me more money than anything else, so I'm gonna spend an entire video on it. That's how important it is. You need to understand the concept of liquidity. When I say liquidity, the first thing people look at is the ease and speed which a financial asset can be converted into cash. Now, if I use Google to make all of my money, I'd be completely broke. This is surface-level understanding of liquidity. There's way more to it. When I show this chart, people have a hard time believing it, especially when you're in traditional finance. When Shiba Inu goes up 108 million percent, or BNB went up 7 million percent, And you could turn $1,000 into a billion, of course it's going to be difficult to believe. And people even think that it's, it's impossible. They think it's a get-rich-quick scheme. These coins didn't go up by this percentage because they were better or had a better team or had more credibility. They went up these crazy percentages because of liquidity. So my claim is, when you see $1,000 turning into a billion, it doesn't mean that they could sell the billion dollars. That's not what it means. It just means that there's a large percentage increase potential. So when you see the speed of getting in and out of an asset, liquidity is a great determining factor. Let's read it again. The ease and speed which a financial asset can be converted into ready cash without significantly affecting its market price. So liquidity is the main determining factor of market price. So when people are like, I want to buy something for cheap, it's not about the dollar amount. It's never about the dollar amount. You could have a coin that's worth $10,000, but the liquidity is $100 in the liquidity pool. That coin will go up very fast in percentages. So the truth is that these coins went up by these crazy percentages because they had very low liquidity at one point, and then they had high liquidity at another. That is the true determining factor of price increase. A project that has low liquidity that has the potential to have high liquidity. So most traders have a skewed perception because their main driving factor for trading is cheap price to high price. It's not. It's low liquidity to high liquidity. So from the beginning, they're pretty much messed up. Let's prove this. If you have a pool with $100K liquidity, as you can see right there, it takes only $20,000 to double the price of that coin. But if you have a pool with $100 million in liquidity, it takes $20 million to double the price. Which one's easier to double this one significantly. It's much easier to get $20,000 worth of buy power than it is to get $20 million, right? And that is literally what I do for a living. I look for projects and I start off with liquidity that have a lot of demand power, meaning they can drive demand for the coin. Their team is solid and has credibility, but with low liquidity. It's not cheap price, it's low liquidity. Also, to just put a cherry on top of this, when people say there's no liquidity in the market, we're in a bear market, how could that possibly be a bad thing? Low liquidity means cheaper price. That means that when the liquidity comes into the market, the goes up. People's thoughts are the exact opposite of what it should be because they're used to buying and selling retail stuff like underwear, right? When you buy underwear, you're not thinking about selling it in the future. You're only buying it for use. So your entire life you've been buying things for use instead of understanding undervalued things. And this is what fundamental analysis is: the process of evaluating a coin's real-world value by examining its liquidity, narrative, and credibility.
