An unspoken truth in DJing is you don't play YouTube and Soundcloud rips in the club. The reason for this is that when you download a track illegally off of YouTube and/or Soundcloud, the track is a very low-quality sounding song. As seen in the video by Mojaxx and DJ City below, even though the track says it'll be downloaded at 128kps, the song is actually transcoded at 128kps which makes the sound quality even worse than this.
DJ City writes that “the majority of DJs use lossy files and it makes sense: high-quality MP3s sound good on most systems and they’re more common than lossless formats.”
Process When Ripping a Song from YouTube:
Process When Ripping a Song from SoundCloud: