The early market, also known as the primary market, is the market where newly issued currencies are sold from issuers to investors. Simply put, the primary market is the stage where each currency is publicly and privately raised by the issuer to investors before it is listed on the exchange. It is also commonly referred to as the first-level project private equity currency in the currency circle.
Those that are not traded through exchanges are called early markets, or black markets, and those that are traded on exchanges are called secondary markets. Both are supply relationships. If one side is in short supply, the other side will follow suit.
What are the benefits of early market? ? ?
Before each coin is listed on an exchange, it is called the primary market. When a coin is ready to be listed on an exchange, it will go through several procedures.
Seed round: Early rounds mainly provide initial team building funds to individuals or institutions.
Private equity round: mainly institutions, pending investment/institutional investment quota, large price discounts
Public fundraising round: Mainly individuals, ordinary users have small investment amounts
Generally, seed prices in the early market are relatively low, but many cryptocurrency enthusiasts cannot find this channel to participate in early market projects. Compared with the secondary market, the opportunity to participate in early projects is greater, and the price obtained is much lower than in the secondary market. Some friends have even doubled many times, or even dozens of times, the moment they go online on the exchange. hundreds of times
It can be said that we won directly at the starting line. Maybe this is the charm of the primary market. Since retail investors or individuals cannot find channels, this also means that there are problems in the primary market that so many people are unaware of.
Why is the early market better than the secondary market?
1. The early market generally leaves enough room for appreciation in the secondary market. how to say?
The early market goes through seed rounds, private placement rounds, and public placement rounds. The price increases in each round, and it is very common for the price difference to be doubled. It must be said here that the seed round is very low. After layers of incremental growth, after being listed on the exchange, there will be a secondary market. It is not impossible for it to appear tenfold or a hundredfold.
2. The early market has a higher threshold. What does the threshold represent?
There is relatively little information about private placement IDO in the early market. Therefore, if currency users want to obtain first-hand resources of the project, it is a good choice to enter the exchange community. However, most private placement of new coins is monopolized by large institutions. The threshold means that you can make money but others may not be able to. (Those who read this article must have entered the community and crossed a certain threshold, you know). The threshold also represents a smaller risk. There are always a few competing for money. Everyone can buy and sell in the secondary market and you can make money. Don't you feel a chill behind your back?
3. In the early market, you only need to pick good projects and hold them for a long time?
The secondary market is easy to chase the rise and fall, and the operation is too difficult. The digital currency market is a market that lacks supervision and lacks depth, and is easily manipulated by funds. Retail investors seeking profits in the secondary market are like snatching food from a tiger's mouth. The primary market can help your assets snowball faster. For example, out of 10 projects, 4 will double 2 times, two will double 5 times, one will double 10 times, and the worst 3 will break. In this way, you can calculate how much net profit you can earn, and then continue to invest again using the cost + profit. Finally, Maximize benefits.
How to get involved in early stage projects?
There are also advantages and disadvantages to the primary market projects in the currency circle. If you can’t understand the project vision or the white paper, you can enter the community to analyze the project organization and background from more angles.
First: the feasibility of the project and whether it solves current problems, such as project rating data, which is one of the important reference indicators.
Second: Whether the project has a celebrity platform and endorsement; (Celebrity platform is also an endorsement of the project, and it also attracts the participation of well-known institutions in the circle);
Third: Does the project have a website? (It is not difficult to build a website nowadays, and everyone is well aware of a project that cannot even build a website);
Fourth: Is the website URL a high-end URL? (High-end URLs for good projects are not willing to spend money to apply for them, and they even negotiate a der);
Fifth: The project plans to be listed on the exchange. If the project can be launched on the first-tier exchanges, it will be proof of its strength. Everyone in the currency circle knows that first-tier exchanges control more than half of the traffic in the entire currency circle. The popularity and traffic of the first-tier exchanges are self-evident.
Choice is greater than effort, and the circle determines your destiny. In addition to having a sharp eye to save time and assess the situation in the currency circle, you also need to keep up with a good team and a good leader. Follow me and you will have already won half the battle in the currency circle!
