what's up guys so we're back in other
videos today with like a buddy Ethan and
what are you talking about saison oh
let's talk about some price Corrections
and volatility in nation markets because
that's what cryptocurrency markets are a
nation market means new kind of
innovative they're unfamiliar right
nation's markets have a couple of
qualities that make them very volatile
so one they're thin that is there's less
liquidity in these markets and say the
foreign exchange where trillions of
dollars are traded every day on bitcoins
market you might have one or two billion
dollars traded every day as an example
so these markets move in very shocking
ways so I see things on social media
sometimes where you'll have a news
headline that says Bitcoin lost 30% of
its value in one day and it's true
because we heard of a to its high of
whatever the past 24 hours may have come
down quite a lot this is something that
shocks a lot of people and it shouldn't
because these markets are by their very
nature extremely volatile you need to
keep that in mind I think that a lot of
people right now is it is it what's the
company clean coinbase they they added
something like 40,000 new accounts if in
one day yeah one day it went absolute so
so many people rushing into the space
naturally I think there are a lot of
people who are probably unfamiliar with
these markets and then get shocked by
the movements wow they get to get like
their mind gets blown I think a lot of
people may lose a lot of money if
they're not aware of what's going on why
those price shocks happen and again it's
down to new markets that are disruptive
and they're very thin so they move very
quickly
I actually a good example of your if
you're comparing these markets to
traditional crypto or traditional
currency markets you'll find where I
mentioned trillions of dollars are
traded every day you'll find that the
spread in these market the difference
between the buy price and the sell price
are fractions of a penny in fact on the
most popular traded currency pair the
euro US dollar the spread is sometimes
as low as zero which means the prices
actually match each other and they're
just waiting for people to pick up the
orders so in those markets you'll see
that's that's incredible liquidity lots
and lots of liquidity to access for
traders in the crypto markets you will
find spreads oftentimes of several
dollars between bid and ask prices so
again these markets are thinner than
markets that are much more
well-established they're newer so people
are trying to find one more price
discovery as people as more people enter
the market
it becomes more volatile because more
and more people then have a best of
financial interest in the price
direction going one way or another and
there are people who have a vested
interest in prices going down as are
called short traders so what I'm trying
to explain is that these markets are
extremely volatile and if you're seeing
price shocks you need to keep your wits
about you and understand this this is
this is a logical rational way for this
market act just because it's so thin if
everything I not to mention there's only
certain key players such as central
exchanges and control the whole inflow
and outflow of crypto itself yet we
definitely should actually mention
manipulation that's going to bring up
because manipulation is something I
think we'd all like to deny oh no these
markets are pure and wonderful now that
they initially wanted a manipulation
absolutely occurs and again it's largely
because these markets are new but also
because these markets are the skirt
regulation I think in a lot of in a lot
of cases so as you get these new markets
with a lot of new people who don't
necessarily understand what's going on I
think those people are easy to take
advantage of if you run a centralized
exchange you have opportunity to
manipulate prices and even in in
regulated environment so that might be
very
attempting to decide that hey if I can
just hide the behavior I may be able to
make an extra million or two that's a
very very tempting position for somebody
who's running a centralized exchange to
be in to manipulate prices to metric to
manipulate their customers to manipulate
liquidity and price feeds so that
behavior it's sometimes hard to prove
and often times impossible but I think
it's very naive to think it doesn't
happen so we need to be aware of that
and also this is why decentralized
exchanges are more and more compelling
as because if you have these centralized
of administrations these centralized er
well they're like what and failure like
yeah look at back just two weeks ago is
still ongoing sometimes the DDoS attacks
sure exactly exchanges can't they're
their manipulators they're they're
exposed to attacks they can be brought
down right I think this is a problem
with baloney axis scaling their hardware
Polonia X has these constant problems
not to say the plenty X's at arable
exchange rating but they run into
problems just like any other exchange
crack and runs into these problems as
well exchanges run into problems where
their hardware isn't necessarily meeting
the demand of their customer base and
also not just above demand of the
customer base but are open to attack
people can like you said DDoS attack or
that's a distributed denial of service
attack they can try to bring these
exchanges down disrupt the prey and in
if price is actually moving really fast
attacking an exchange creates market
uncertainty of net exchange there's a
lot of a lot of market share so there
are always risks of centralized
exchanges not necessarily just
corruption but also just as a mere set
points of failure this is a again
something we got to keep in mind all of
these things add up to a volatile price
point even more reason to not keep your
crypto on exchange there's that fear
don't keep your crypto on exchanges that
vendor you use a good wallet I use a
cold wallets or use any wallet that
happens to see phrase back up and back
up your stuff yeah for sure definitely
use a wallet that you're going to be
able to recover if you say break your
phone or burn your computer down
rage of frustration after Bitcoin lost
30% of its value one day that's it be
safe be aware keep your wits about you
these are volatile nation markets you
need to keep that in mind I think it's
just really important that people just
understand that awesome well thanks for
sharing all right guys have any
questions for us leave a comment below
this video as well make sure you share
this video and we'll talk to you soon
peace toodles