0:00:00.030,0:00:03.359 what's up guys so we're back in other 0:00:01.350,0:00:05.429 videos today with like a buddy Ethan and 0:00:03.359,0:00:08.669 what are you talking about saison oh 0:00:05.429,0:00:11.460 let's talk about some price Corrections 0:00:08.669,0:00:13.469 and volatility in nation markets because 0:00:11.460,0:00:16.469 that's what cryptocurrency markets are a 0:00:13.468,0:00:19.250 nation market means new kind of 0:00:16.469,0:00:21.778 innovative they're unfamiliar right 0:00:19.250,0:00:23.759 nation's markets have a couple of 0:00:21.778,0:00:27.300 qualities that make them very volatile 0:00:23.760,0:00:29.220 so one they're thin that is there's less 0:00:27.300,0:00:30.929 liquidity in these markets and say the 0:00:29.219,0:00:33.719 foreign exchange where trillions of 0:00:30.928,0:00:35.640 dollars are traded every day on bitcoins 0:00:33.719,0:00:37.380 market you might have one or two billion 0:00:35.640,0:00:41.128 dollars traded every day as an example 0:00:37.380,0:00:43.829 so these markets move in very shocking 0:00:41.128,0:00:45.899 ways so I see things on social media 0:00:43.829,0:00:49.350 sometimes where you'll have a news 0:00:45.899,0:00:51.840 headline that says Bitcoin lost 30% of 0:00:49.350,0:00:53.730 its value in one day and it's true 0:00:51.840,0:00:55.559 because we heard of a to its high of 0:00:53.729,0:00:57.988 whatever the past 24 hours may have come 0:00:55.558,0:01:00.119 down quite a lot this is something that 0:00:57.988,0:01:03.599 shocks a lot of people and it shouldn't 0:01:00.119,0:01:07.349 because these markets are by their very 0:01:03.600,0:01:08.939 nature extremely volatile you need to 0:01:07.349,0:01:12.929 keep that in mind I think that a lot of 0:01:08.938,0:01:16.048 people right now is it is it what's the 0:01:12.930,0:01:19.049 company clean coinbase they they added 0:01:16.049,0:01:21.900 something like 40,000 new accounts if in 0:01:19.049,0:01:23.549 one day yeah one day it went absolute so 0:01:21.900,0:01:25.080 so many people rushing into the space 0:01:23.549,0:01:26.729 naturally I think there are a lot of 0:01:25.079,0:01:28.469 people who are probably unfamiliar with 0:01:26.728,0:01:31.170 these markets and then get shocked by 0:01:28.469,0:01:33.118 the movements wow they get to get like 0:01:31.170,0:01:35.040 their mind gets blown I think a lot of 0:01:33.118,0:01:36.810 people may lose a lot of money if 0:01:35.040,0:01:39.719 they're not aware of what's going on why 0:01:36.810,0:01:42.180 those price shocks happen and again it's 0:01:39.719,0:01:44.789 down to new markets that are disruptive 0:01:42.180,0:01:45.240 and they're very thin so they move very 0:01:44.790,0:01:48.180 quickly 0:01:45.239,0:01:49.618 I actually a good example of your if 0:01:48.180,0:01:51.840 you're comparing these markets to 0:01:49.618,0:01:54.359 traditional crypto or traditional 0:01:51.840,0:01:55.590 currency markets you'll find where I 0:01:54.359,0:01:58.019 mentioned trillions of dollars are 0:01:55.590,0:02:00.030 traded every day you'll find that the 0:01:58.019,0:02:01.500 spread in these market the difference 0:02:00.030,0:02:05.140 between the buy price and the sell price 0:02:01.500,0:02:07.390 are fractions of a penny in fact on the 0:02:05.140,0:02:10.090 most popular traded currency pair the 0:02:07.390,0:02:11.830 euro US dollar the spread is sometimes 0:02:10.090,0:02:13.330 as low as zero which means the prices 0:02:11.830,0:02:14.980 actually match each other and they're 0:02:13.330,0:02:18.819 just waiting for people to pick up the 0:02:14.979,0:02:22.209 orders so in those markets you'll see 0:02:18.818,0:02:24.099 that's that's incredible liquidity lots 0:02:22.209,0:02:26.439 and lots of liquidity to access for 0:02:24.099,0:02:29.259 traders in the crypto markets you will 0:02:26.439,0:02:32.829 find spreads oftentimes of several 0:02:29.259,0:02:35.709 dollars between bid and ask prices so 0:02:32.830,0:02:37.390 again these markets are thinner than 0:02:35.709,0:02:39.879 markets that are much more 0:02:37.389,0:02:41.949 well-established they're newer so people 0:02:39.879,0:02:44.530 are trying to find one more price 0:02:41.949,0:02:45.189 discovery as people as more people enter 0:02:44.530,0:02:47.050 the market 0:02:45.189,0:02:48.280 it becomes more volatile because more 0:02:47.050,0:02:49.390 and more people then have a best of 0:02:48.280,0:02:50.860 financial interest in the price 0:02:49.389,0:02:52.268 direction going one way or another and 0:02:50.860,0:02:54.100 there are people who have a vested 0:02:52.269,0:02:56.709 interest in prices going down as are 0:02:54.099,0:02:58.719 called short traders so what I'm trying 0:02:56.709,0:03:01.689 to explain is that these markets are 0:02:58.719,0:03:04.300 extremely volatile and if you're seeing 0:03:01.689,0:03:06.459 price shocks you need to keep your wits 0:03:04.300,0:03:09.850 about you and understand this this is 0:03:06.459,0:03:11.920 this is a logical rational way for this 0:03:09.849,0:03:13.569 market act just because it's so thin if 0:03:11.919,0:03:15.729 everything I not to mention there's only 0:03:13.569,0:03:18.310 certain key players such as central 0:03:15.729,0:03:20.738 exchanges and control the whole inflow 0:03:18.310,0:03:22.030 and outflow of crypto itself yet we 0:03:20.739,0:03:23.650 definitely should actually mention 0:03:22.030,0:03:25.959 manipulation that's going to bring up 0:03:23.650,0:03:28.719 because manipulation is something I 0:03:25.959,0:03:30.430 think we'd all like to deny oh no these 0:03:28.719,0:03:34.060 markets are pure and wonderful now that 0:03:30.430,0:03:37.390 they initially wanted a manipulation 0:03:34.060,0:03:39.250 absolutely occurs and again it's largely 0:03:37.389,0:03:43.059 because these markets are new but also 0:03:39.250,0:03:44.680 because these markets are the skirt 0:03:43.060,0:03:48.219 regulation I think in a lot of in a lot 0:03:44.680,0:03:49.930 of cases so as you get these new markets 0:03:48.219,0:03:51.370 with a lot of new people who don't 0:03:49.930,0:03:52.480 necessarily understand what's going on I 0:03:51.370,0:03:55.450 think those people are easy to take 0:03:52.479,0:03:58.439 advantage of if you run a centralized 0:03:55.449,0:04:00.909 exchange you have opportunity to 0:03:58.439,0:04:02.650 manipulate prices and even in in 0:04:00.909,0:04:03.109 regulated environment so that might be 0:04:02.650,0:04:07.340 very 0:04:03.110,0:04:09.920 attempting to decide that hey if I can 0:04:07.340,0:04:12.680 just hide the behavior I may be able to 0:04:09.919,0:04:14.659 make an extra million or two that's a 0:04:12.680,0:04:16.279 very very tempting position for somebody 0:04:14.659,0:04:18.649 who's running a centralized exchange to 0:04:16.279,0:04:21.139 be in to manipulate prices to metric to 0:04:18.649,0:04:23.299 manipulate their customers to manipulate 0:04:21.139,0:04:26.180 liquidity and price feeds so that 0:04:23.300,0:04:28.610 behavior it's sometimes hard to prove 0:04:26.180,0:04:29.660 and often times impossible but I think 0:04:28.610,0:04:31.430 it's very naive to think it doesn't 0:04:29.660,0:04:33.890 happen so we need to be aware of that 0:04:31.430,0:04:36.290 and also this is why decentralized 0:04:33.889,0:04:38.089 exchanges are more and more compelling 0:04:36.290,0:04:41.330 as because if you have these centralized 0:04:38.089,0:04:42.918 of administrations these centralized er 0:04:41.329,0:04:44.779 well they're like what and failure like 0:04:42.918,0:04:46.939 yeah look at back just two weeks ago is 0:04:44.779,0:04:49.399 still ongoing sometimes the DDoS attacks 0:04:46.939,0:04:50.719 sure exactly exchanges can't they're 0:04:49.399,0:04:53.060 their manipulators they're they're 0:04:50.720,0:04:55.250 exposed to attacks they can be brought 0:04:53.060,0:04:58.069 down right I think this is a problem 0:04:55.250,0:05:00.470 with baloney axis scaling their hardware 0:04:58.069,0:05:02.509 Polonia X has these constant problems 0:05:00.470,0:05:04.130 not to say the plenty X's at arable 0:05:02.509,0:05:05.569 exchange rating but they run into 0:05:04.129,0:05:07.219 problems just like any other exchange 0:05:05.569,0:05:09.409 crack and runs into these problems as 0:05:07.220,0:05:11.090 well exchanges run into problems where 0:05:09.410,0:05:12.439 their hardware isn't necessarily meeting 0:05:11.089,0:05:14.539 the demand of their customer base and 0:05:12.439,0:05:16.910 also not just above demand of the 0:05:14.540,0:05:19.430 customer base but are open to attack 0:05:16.910,0:05:20.689 people can like you said DDoS attack or 0:05:19.430,0:05:22.728 that's a distributed denial of service 0:05:20.689,0:05:24.680 attack they can try to bring these 0:05:22.728,0:05:27.039 exchanges down disrupt the prey and in 0:05:24.680,0:05:29.660 if price is actually moving really fast 0:05:27.040,0:05:30.979 attacking an exchange creates market 0:05:29.660,0:05:34.400 uncertainty of net exchange there's a 0:05:30.978,0:05:35.899 lot of a lot of market share so there 0:05:34.399,0:05:37.699 are always risks of centralized 0:05:35.899,0:05:39.529 exchanges not necessarily just 0:05:37.699,0:05:41.870 corruption but also just as a mere set 0:05:39.529,0:05:43.819 points of failure this is a again 0:05:41.870,0:05:46.970 something we got to keep in mind all of 0:05:43.819,0:05:49.579 these things add up to a volatile price 0:05:46.970,0:05:52.040 point even more reason to not keep your 0:05:49.579,0:05:53.810 crypto on exchange there's that fear 0:05:52.040,0:05:56.360 don't keep your crypto on exchanges that 0:05:53.810,0:05:58.339 vendor you use a good wallet I use a 0:05:56.360,0:05:59.990 cold wallets or use any wallet that 0:05:58.339,0:06:01.899 happens to see phrase back up and back 0:05:59.990,0:06:04.639 up your stuff yeah for sure definitely 0:06:01.899,0:06:06.949 use a wallet that you're going to be 0:06:04.639,0:06:09.168 able to recover if you say break your 0:06:06.949,0:06:11.120 phone or burn your computer down 0:06:09.168,0:06:16.310 rage of frustration after Bitcoin lost 0:06:11.120,0:06:18.620 30% of its value one day that's it be 0:06:16.310,0:06:21.319 safe be aware keep your wits about you 0:06:18.620,0:06:22.459 these are volatile nation markets you 0:06:21.319,0:06:23.960 need to keep that in mind I think it's 0:06:22.459,0:06:25.459 just really important that people just 0:06:23.959,0:06:26.718 understand that awesome well thanks for 0:06:25.459,0:06:28.038 sharing all right guys have any 0:06:26.718,0:06:30.019 questions for us leave a comment below 0:06:28.038,0:06:31.519 this video as well make sure you share 0:06:30.019,0:06:34.658 this video and we'll talk to you soon 0:06:31.519,0:06:34.658 peace toodles