'Musk's call on Doge triggered FOMO, the meme projects ambushed by VCs were sniped by scientists, the DEX liquidity pool was instantly drained, and the retail investors didn't even understand the candlesticks before going to zero.' This seemingly cryptic conversation hides 90% of the wealth codes and survival rules in the crypto circle. Today, we'll decode all the must-know terminology in a way that even a market vendor can understand.
I. Digital Codes: K/M/B are not fast food combos
- K = thousand ($1K = $1,000)
Example: 'This MEME coin has a market cap of only 500K'—approximately $500,000
- M = million ($1M = $1 million)
Example: 'After Musk's call, SHIB's daily trading volume broke 500M'—$500 million
- B = billion ($1B = $1 billion)
Example: 'Bitcoin's market cap returns to 1T (trillion), ETH stabilizes at 200B'—$200 billion
Note: The Chinese term '亿' can be confusing (1 亿 = 100M), be sure to convert to international units.
II. Institutional Underbelly: VC/Market Makers' 'Hunting Games'
- VC (Venture Capital): top predators in the crypto circle
Representatives: a16z, Sequoia Capital
Operation: Buy at low prices, pump after going online to harvest profits, rhetoric 'invest in the future of Web3' = 'prepare to unlock and crash'
- Market makers: 'shadow operators' of exchanges
Skill: Using algorithms to control the market, good at 'drawing doors' (suddenly pulling up and crashing to form door-shaped candlesticks)
Trap: The 'support level' you think exists might be a fishing line they set up
III. Trading battlefield: the undercurrents of CEX and DEX
- Liquidity pool: 'fund reservoir' of DEX
Essence: Users store coins to earn transaction fees, but hide 'impermanent loss'—the greater the price fluctuation, the worse the loss
Tragedy: In 2021, a certain coin plummeted, and liquidity providers lost 80% of their principal in one day
IV. Technical jargon: the tricks of Layer 2 and cross-chain bridges
- Layer 2: the antidote to Ethereum traffic jams
Principle: After transactions are packaged, they return to the mainnet, faction wars: OP faction, ARB faction, ZK faction show their skills
- Cross-chain bridge: asset 'converter'
Function: Turning BTC into WBTC on the ETH chain, but hidden risks—In 2022, Axie's sidechain was hacked for $625 million
- Zero-Knowledge Proof (ZKP): anonymity tool
Effect: Proving you have a password, but not revealing it; Monero (XMR) achieves complete anonymity through this
V. Guide to avoiding losses (a bloody summary)
1. Project team's jargon decoded: 'ecosystem development' = 'have not found a profit point', 'decentralization' = 'cannot find people when problems arise'
2. Scientists: geeks proficient in code vulnerabilities
Operation: Front-running trades, flash loan arbitrage, once rolled away $12 million from a DEX in 10 minutes
3. Three Laws to Avoid Pitfalls with Meme Coins:
- Founders with over 100,000 Twitter followers = marketing hype, handle with care
- Names with 'Elon' or 'Moon' = publicity stunts, blacklist them
- Liquidity pool locked at 1 million = potential to run away at any time, comparable to a time bomb
VI. Survival Formula in the Crypto World
When you can use this formula to understand the crypto world: (VC capital + community sentiment) × leverage - regulatory risk = account balance, then you have truly entered the field.
Remember: All stories of overnight wealth are survivor bias; true technology never relies on jargon for packaging. In the crypto world, surviving is more important than anything else—continue learning, protect your principal, opportunities are always present.
