WEBVTT

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what's up guys so we're back in other

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videos today with like a buddy Ethan and

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what are you talking about saison oh

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let's talk about some price Corrections

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and volatility in nation markets because

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that's what cryptocurrency markets are a

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nation market means new kind of

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innovative they're unfamiliar right

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nation's markets have a couple of

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qualities that make them very volatile

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so one they're thin that is there's less

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liquidity in these markets and say the

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foreign exchange where trillions of

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dollars are traded every day on bitcoins

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market you might have one or two billion

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dollars traded every day as an example

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so these markets move in very shocking

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ways so I see things on social media

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sometimes where you'll have a news

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headline that says Bitcoin lost 30% of

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its value in one day and it's true

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because we heard of a to its high of

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whatever the past 24 hours may have come

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down quite a lot this is something that

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shocks a lot of people and it shouldn't

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because these markets are by their very

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nature extremely volatile you need to

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keep that in mind I think that a lot of

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people right now is it is it what's the

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company clean coinbase they they added

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something like 40,000 new accounts if in

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one day yeah one day it went absolute so

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so many people rushing into the space

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naturally I think there are a lot of

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people who are probably unfamiliar with

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these markets and then get shocked by

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the movements wow they get to get like

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their mind gets blown I think a lot of

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people may lose a lot of money if

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they're not aware of what's going on why

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those price shocks happen and again it's

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down to new markets that are disruptive

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and they're very thin so they move very

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quickly

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I actually a good example of your if

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you're comparing these markets to

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traditional crypto or traditional

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currency markets you'll find where I

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mentioned trillions of dollars are

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traded every day you'll find that the

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spread in these market the difference

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between the buy price and the sell price

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are fractions of a penny in fact on the

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most popular traded currency pair the

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euro US dollar the spread is sometimes

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as low as zero which means the prices

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actually match each other and they're

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just waiting for people to pick up the

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orders so in those markets you'll see

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that's that's incredible liquidity lots

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and lots of liquidity to access for

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traders in the crypto markets you will

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find spreads oftentimes of several

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dollars between bid and ask prices so

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again these markets are thinner than

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markets that are much more

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well-established they're newer so people

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are trying to find one more price

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discovery as people as more people enter

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the market

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it becomes more volatile because more

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and more people then have a best of

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financial interest in the price

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direction going one way or another and

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there are people who have a vested

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interest in prices going down as are

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called short traders so what I'm trying

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to explain is that these markets are

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extremely volatile and if you're seeing

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price shocks you need to keep your wits

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about you and understand this this is

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this is a logical rational way for this

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market act just because it's so thin if

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everything I not to mention there's only

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certain key players such as central

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exchanges and control the whole inflow

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and outflow of crypto itself yet we

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definitely should actually mention

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manipulation that's going to bring up

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because manipulation is something I

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think we'd all like to deny oh no these

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markets are pure and wonderful now that

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they initially wanted a manipulation

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absolutely occurs and again it's largely

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because these markets are new but also

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because these markets are the skirt

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regulation I think in a lot of in a lot

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of cases so as you get these new markets

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with a lot of new people who don't

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necessarily understand what's going on I

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think those people are easy to take

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advantage of if you run a centralized

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exchange you have opportunity to

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manipulate prices and even in in

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regulated environment so that might be

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very

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attempting to decide that hey if I can

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just hide the behavior I may be able to

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make an extra million or two that's a

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very very tempting position for somebody

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who's running a centralized exchange to

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be in to manipulate prices to metric to

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manipulate their customers to manipulate

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liquidity and price feeds so that

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behavior it's sometimes hard to prove

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and often times impossible but I think

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it's very naive to think it doesn't

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happen so we need to be aware of that

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and also this is why decentralized

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exchanges are more and more compelling

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as because if you have these centralized

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of administrations these centralized er

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well they're like what and failure like

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yeah look at back just two weeks ago is

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still ongoing sometimes the DDoS attacks

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sure exactly exchanges can't they're

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their manipulators they're they're

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exposed to attacks they can be brought

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down right I think this is a problem

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with baloney axis scaling their hardware

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Polonia X has these constant problems

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not to say the plenty X's at arable

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exchange rating but they run into

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problems just like any other exchange

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crack and runs into these problems as

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well exchanges run into problems where

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their hardware isn't necessarily meeting

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the demand of their customer base and

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also not just above demand of the

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customer base but are open to attack

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people can like you said DDoS attack or

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that's a distributed denial of service

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attack they can try to bring these

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exchanges down disrupt the prey and in

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if price is actually moving really fast

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attacking an exchange creates market

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uncertainty of net exchange there's a

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lot of a lot of market share so there

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are always risks of centralized

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exchanges not necessarily just

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corruption but also just as a mere set

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points of failure this is a again

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something we got to keep in mind all of

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these things add up to a volatile price

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point even more reason to not keep your

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crypto on exchange there's that fear

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don't keep your crypto on exchanges that

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vendor you use a good wallet I use a

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cold wallets or use any wallet that

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happens to see phrase back up and back

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up your stuff yeah for sure definitely

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use a wallet that you're going to be

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able to recover if you say break your

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phone or burn your computer down

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rage of frustration after Bitcoin lost

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30% of its value one day that's it be

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safe be aware keep your wits about you

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these are volatile nation markets you

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need to keep that in mind I think it's

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just really important that people just

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understand that awesome well thanks for

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sharing all right guys have any

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questions for us leave a comment below

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this video as well make sure you share

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this video and we'll talk to you soon

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peace toodles