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