What is Secondary Market?
Let's find out Secondary Market meaning, definition in crypto, what is Secondary Market, and all other detailed facts.
Looking from a traditional finance industry point of view, a secondary market is typically a location where retail investors trade financial tools such as futures, stocks, bonds, or options. However, the key purpose of the secondary market is to give the opportunity to access the common investor's financial tools, which, in any other scenario, they would not be able to get from the primary market.
This is because a primary market in traditional financial ecosystems is typically kept for those that have more experience and knowledge as well as bigger organizations. Moreover, a retail store such as Target can be compared to a secondary market because this is the place available to anyone.
The primary market, on the other hand, is targeted particularly at providers, where distributors make substantial purchases.
In the cryptocurrency world, a secondary market is used by investors and traders to purchase and sell several types of assets or securities that belong to them. And the very same concept as for the traditional finance sector can be applied.
To be more specific, main purchasers are often individuals who can afford to lose their capital on a fresh initiative or who learn about it first and are able to obtain tokens. After the first token sale, the secondary crypto market is where everyone else may acquire tokens.
Nonetheless, the fundamental variation between them is that the principal market analog is now built mostly on token sale platforms. The limit here is not the number of tokens, but instead the buyer's credentials and risk tolerance.