 What's up guys so we're back with another video today with my good buddy Ethan and what are we going to talk about today Ethan? Oh let's talk about um price corrections and volatility in nation markets because that's what cryptocurrency markets are. Nation markets means new kind of innovative they're unfamiliar right? Nation 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 bitcoin's market you might have one or two billion dollars traded every day as an example. So these markets move in very shocky 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 and it's true because comparatively 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 what was it uh is it uh what's the company coin coinbase they they added something like 40 000 new accounts in one day. Yeah one day. It would absolutely 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 like their 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 it's down to new markets that are disruptive and they're very thin so they move very quickly. Like actually a good example if you're if you're comparing these markets to traditional cryptocurrency markets you'll find where where I mentioned trillions of dollars are traded every day you'll find that the spread in these markets the difference between the buy price and the sell price are fractions of a penny. In fact on the 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 and and ask prices. So again these markets are are thinner than markets that are much more well established they're newer so people are trying to find more and more price discovery as people as more and more people enter the market it becomes more volatile because more and more people then have a vested financial interest in the price direction going one way or another and there are people who have a vested interest in prices going down there's a 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 that this this is this is a logical rational way for this market act just because it's so thin. It's very thin and not to mention there's only certain key players such as central exchanges kind of control the whole inflow and outflow of crypto itself. Yeah we definitely should actually mention manipulation that's going to be to bring up because manipulation is something I think we'd all like to deny oh no these markets are pure and wonderful. Yeah manipulation absolutely occurs and again it's largely because these markets are new but also because these markets are they skirt regulation I think 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 environments that might be very tempting to to 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 manipulate their customers to manipulate liquidity and price feeds so that behavior it's sometimes hard to prove and oftentimes 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 is because as you have these centralized administrations these centralized well they're also quite a failure like if you look at back just two weeks ago and they're still ongoing sometimes the DDS attacks sure exactly exchanges can't they're they're manipulated they're they're exposed to attacks they can be brought down right I think this is a problem with Poloniacs is scaling their hardware Poloniacs has these constant problems not to say that Poloniacs is a terrible exchange or anything but they they run into problems just like any other exchange Kraken 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 about a demand of their customer base but are open to attack people can like you said DDS attack or that's a distributed denial of service attack they can try to bring these exchanges down disrupt the price and if price is actually moving really fast attacking an exchange creates market uncertainty if that exchange has a lot of a lot of market share so there are all these risks of centralized exchanges not necessarily just corruption but also just as a mere set points of failure this is again something we got to keep in mind all of these things add up to a volatile price market even more reason to not keep your crypto on exchange ah there's that too don't keep your crypto on exchanges that's a bad idea use a good wallet I use a cold wallet or use any wallet that has a seed 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 brick your phone or burn your computer down that's right rage of frustration after Bitcoin lost 30% of its value in one day that's that's it be safe be aware keep your wits about you these are volatile nation markets need to keep that in mind I think it's really important that people just understand that awesome well thanks for sharing all right guys if you 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