In the cryptocurrency space, the primary market is often seen as the starting point for value investing. This is because the token prices in the primary market are relatively low, so there is huge upside potential. Once the token is listed on the exchange and starts trading, the price rises, and early investors and institutions have the opportunity to get rich returns.
In the cryptocurrency world, there are usually several ways for ordinary people to achieve financial freedom:
The first is to have enough funds to realize profits by simply trading in the secondary market. This method is relatively simple, just buy low-priced tokens and wait for the price to rise, and then sell them to make a profit.
The second is to understand on-chain observation and grasp on-chain behavior, such as airdrops and observing large wallets. In this way, you can follow the actions of large investors to gain benefits, such as buying with them when large investors buy, and then selling to earn profits when the price rises.
The third way is to rely on luck to participate in local dog and contract transactions. If you have some luck, you can try to participate in local dog and contract transactions, but this method is risky and is not recommended for novices.
The fourth is to participate in the early subscription of the primary market and follow institutional investment. Early subscription of the primary market means to subscribe to the quota in advance through the community and participate in the project before the token is launched. This is a way to get real opportunities. It should be noted that the opportunities in the primary market come from the investment of top capital, and it is necessary to carefully identify whether it is a truly valuable project. It should be noted that any token that has a price and can be traded on the chain does not belong to the primary market.
What is the primary market
The primary market, also known as the issuance market or primary market, is relative to the secondary market. In the cryptocurrency world, the primary market refers to the market stage before the token is listed on the exchange. In the primary market, investors can buy the tokens issued by the project party at a relatively low price. Once the project token is listed on the exchange, the price will often rise, bringing a certain degree of appreciation. Investors can sell the tokens they hold at this time to make a profit.
Generally speaking, the development process of a project goes through the seed round, private round, public round and other stages. The token price increases in each stage, and the price difference also widens accordingly. Especially in the seed round of the project, the token price is usually very low. When the project token is listed on the exchange and enters the secondary market, the price difference between the primary market and the secondary market will be very obvious. Especially in the bull market, the price difference of high-quality projects may reach several times or even hundreds of times.
Advantages of the primary market
In the primary market, the subscription price is usually the lowest, sometimes even only one-tenth of the price of the listed exchange. In short, participating in the primary market subscription is like queuing up to buy tickets. You stand at the front of the line and have the opportunity to choose the best position. Once these tokens start to sell well in the secondary market and the price rises rapidly, you have already obtained stable income in the primary market.
In contrast, the currencies traded in the secondary market have often been hyped. It is very difficult to get a hundred or a thousand times return!
Therefore, in general, the returns in the primary market are usually much higher than those in the secondary market. The participation price in the primary market is often much lower than the listing price, and the low price itself is a guarantee of low risk and high returns.
