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