1. What is the primary market of the cryptocurrency circle?
The primary market, also known as the issuance market or primary market, is relative to the secondary market. The popular understanding of the currency circle is the market before listing on the exchange. The primary market can buy the project's tokens at the lowest price, and then sell them after the project tokens are listed on the exchange and appreciate to a certain level of profit, in order to maximize profits at the lowest cost.
More and more cryptocurrency investors are turning from the secondary market to the primary market?
Now it is not a very wise choice to chase the rising and falling in the secondary market, but it is not the case in the primary market.
The primary market is the market before the exchange. Before the currency is listed, the exchange will issue an announcement. Many people know that the currency 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 project’s tokens at a lower price.
Why are so many people studying the primary market now?
Potential coins, high-quality coins, private placement coins. Moreover, the current mainstream coins have been in a stage of recovery, and the currency circle is bound to usher in a wave of explosion. There may still be many people who do not understand the primary market very well.
I would like to explain to you why the primary market is more upscale than the secondary market. The reason is that before a currency is listed on an exchange, it is collectively referred to as the primary market. Before a new currency is launched, it is collectively referred to as private placement. After the currency is launched, the price may be several or dozens of times higher than before, or even higher!
1. Definition and characteristics of the primary market in the cryptocurrency world
Definition: The primary market of the cryptocurrency industry refers to the initial issuance of cryptocurrency, also known as the private placement or crowdfunding round of the project. At this stage, the project team will sell tokens to specific investors or the public through private placement or crowdfunding.
Features:
(1) Closedness: Primary market investment opportunities are usually only open to specific investors or users holding specific certifications, and the participation threshold is high.
(2) High risk and high return: Projects in the primary market are in the early stages and the investment risk is relatively high, but at the same time there is also great potential for investment returns.
(3) Discovery of new projects: The primary market is an important channel for discovering and investing in new projects. For investors, it can acquire some cryptocurrency projects with potential in the future.
In layman's terms, when a token has not yet been listed on any exchange, we can buy the token of the project party at a lower price from the primary market channel. After the token is listed on the exchange and reaches a certain profit, it can be shipped, exchanging the lowest cost for the greatest benefit.
Take stocks as an example, for my country's A shares, the IPO we often talk about is carried out in the primary market, and the investment in companies before the IPO (such as VC, PE and other private equity investments) is generally also called the investment in the primary market.
2. Definition and characteristics of the secondary market in the cryptocurrency circle
Definition: The secondary market of the cryptocurrency world refers to the market where tokens that have been issued in the primary market are traded in exchanges and other places. Participants in the primary market can sell their tokens to other investors or exchange users.
Features:
(1) Openness: The secondary market is more open than the primary market. Any qualified investor can participate in the transaction. There are no restrictions on buying and selling.
(2) High liquidity: In the secondary market, investors can buy or sell tokens at any time, and the market liquidity is high.
(3) Prices are affected by the market: The price of tokens in the secondary market is affected by factors such as supply and demand and market sentiment, and prices may fluctuate.
3. What are the differences in advantages between the primary and secondary markets?
As we all know, in the primary market, cash realization is very slow, which may take several months, while in the secondary market, cash realization is very fast and you can buy and sell at any time.
Therefore, the biggest advantage of the secondary market should be liquidity. It is precisely because of the existence of quick in and quick out that people in the secondary market are impetuous, while people in the primary market must look at the long term. Of course, people in the secondary market can also believe in value investment, such as holding Moutai for many years.
From this perspective, the secondary market is actually very free. You can hold for a long time or a short time. But in general, the returns from the secondary market may not be as good as those from the primary market. The participation price will be much lower than the listing price, and the low price itself is a guarantee of low risk and high returns.
Most people think that the bull market is over and the primary market is about to end. In fact, this is not the case. Choosing the primary market in a bull market is indeed a good choice. However, now is the time when the bull and bear markets are uncertain. The primary market is often the best choice for everyone. There is no need to chase highs and lows in the secondary market. Private equity in the primary market itself is extremely low priced, so there is no need to worry at all.
The primary market often precedes the secondary market. When a hot coin is still brewing in the primary market, a large number of secondary market participants will ask where to buy it. This is the problem of information asymmetry. We know something that you don’t know, and we have something that you just want. This is the benefit brought by information asymmetry.
The secondary market coin hoarding plan can go hand in hand with the primary market. Of course, the current interactive airdrops in the crypto circle are also a way to get the primary quota, but some people just want to save trouble, while others are willing to put it into practice.
At the same time, the primary market also comes with certain thresholds and some points that are more difficult than the secondary market: lock-up and release mechanisms
Since the release mechanism is formulated by the project party or institution, it is rare to get a 100% release quota without lock-up. It may be released within a year or three months. But the primary market is simply value investment + venture capital. If you want early quota, you must make a long-term plan. Similar to SUI, the new exchange also adopts the rule of batch release, but the first phase will pay back the investment, and the rest will be profits. If the project develops well in the long run, you will regret throwing away the chips in your hands. Maybe most people will choose to ship online#鄂B炒家 #Ripple于诉讼中取得部分胜利 #PlusToken相关钱包转移ETH #加密市场反弹 #美联储何时降息？
