Many people say that entering the primary market of the cryptocurrency circle means walking at the forefront of the cryptocurrency circle. Simply put, it means subscribing from the issuer. The primary market, also known as the issuance market or primary market, is relative to the secondary market.
The primary market is the market for issuing currencies, and the secondary market is the market for trading.
Then its advantages are self-evident. The participation price will be much lower than the listing price. The low price itself is a guarantee of low risk and high returns.
If you understand it more deeply, you will find that the private placement projects in the cryptocurrency circle will go through the seed round, private placement round, and public offering round. The price of each round increases, and the multiple price difference is also common, especially the seed round price of the project is also very low. After the project token is listed on the exchange, that is, the secondary market, the price difference between the primary market and the secondary market is extremely obvious at this time. High-quality projects in the bull market may have a hundred-fold price difference.
The primary market is the market before the exchange. Before the currency is listed, the exchange will issue an announcement. Many people know that this coin will be listed on the exchange, but they just don’t know how to buy it. They can only chase it back and forth in the secondary market, which is undoubtedly very dangerous. The primary market is to buy the tokens of the project party at a lower price.
How can newcomers participate and get off safely?
1. The team background of the project. Do the founding team members have other blockchain project-related technical or operational backgrounds? Does the founding team have the corresponding technical background and operational experience of the blockchain project? Obtaining information is not limited to official websites, white papers, communities, media, etc.
2. The investment institutions of the project are particularly important. Good projects can attract the participation of well-known institutions through their influence
3. Find professional project rating information, which is one of the important reference indicators.
4. The technological innovation of the project, or the development of similar application projects, can be simply compared.
5. The situation of the project's plan to go on the exchange is like the celebrity effect. If a good project can be launched on a first-tier exchange for the first time, it is not only a proof of strength, but also a testimony of being optimistic. We know that the first-tier exchanges in the currency market control more than half of the traffic in the entire currency circle. If the project token can be listed on a first-tier exchange, the relative popularity will definitely be high. More traffic and high popularity will attract more people to participate, and the price will be pushed up accordingly.