The Best Kept Secret in Crypto Nobody Teaches Beginners

[00:00:00]All right, so I was out here shooting a video, and then someone said that he knows me from social media. What's your name?

[00:00:04]>> Smooth Ali.

[00:00:05]>> So, his name's Ali Smooth. I want him to ask me any question. He's newer in crypto, he's learning, he's trying to get involved.

[00:00:10]>> So, my question is what would you think would be the best kept secret about crypto?

[00:00:15]>> Yeah, this is actually a really good question. This is my favorite. I love this question because it it really rips a hole in mainstream crypto. The number one best secret by far is liquidity. So, understanding if I was telling someone brand new in crypto, just go straight to understanding what an automated market maker is.

[00:00:30]>> Okay.

[00:00:30]>> So, there's two different models you need to understand. Get Claude, ChatGPT, whatever. Open up Claude and type in, "What's the difference between an order book model and an automated market maker?" These are basically exchanges, right? So, an exchange essentially changes one currency for another. In the case of crypto, it's one crypto for another.

[00:00:46]>> Mhm.

[00:00:46]>> In the traditional world, there's an order book model. So, order books, what they'll basically do is they'll be like, "You have an order. You put in an order cuz you want to buy this stock at 200."

[00:00:54]>> Whatever it is, yeah.

[00:00:55]>> I put an order that I want to sell the stock at 200. The system automatically pairs it.

[00:01:00]>> Mhm.

[00:01:00]>> So, that's the old way. With automated market makers, that process is automatically handled in a decentralized way with a liquidity pool.

[00:01:08]>> Mhm.

[00:01:09]>> So, the So, the beauty of that is you can literally see how much money is in the asset you're actually purchasing.

[00:01:15]>> Right there.

[00:01:16]>> Yeah. So, you see the demand, you see everything. It's like so much more transparent. You can study liquidity for 3 months. You can just sit there >> Yeah.

[00:01:24]>> and it will it will like make you the most money out of anything you could possibly think of in crypto.