Why is the profit of the primary market better than that of the secondary market?
1. The primary market generally leaves enough room for appreciation in the secondary market. How to say it? The primary market goes through the seed round, private round, and public round. The price increases in each round, and the price difference is also very common. Here we have to say that the seed round is very low. After layers of increase, it is the secondary market after listing, and it is not impossible to have ten times or a hundred times.
2. The primary market has a higher threshold. What does the threshold represent? The news of private IDO in the primary market is relatively closed, so if coin people want to obtain first-hand resources of the project, it is a good choice to enter a high-quality communication community. However, most of the private new coins are monopolized by large institutions. The threshold means that you can make money, but others may not. The threshold also represents a smaller risk. There are always a few people who compete for money. Everyone can buy and sell in the secondary market, and you can make money. Don’t you feel cold behind you?
3. In the primary market, you only need to pick a good project and hold it for a long time? The secondary market is easy to chase ups and downs, and the operation is too difficult. The virtual currency market is a market that lacks supervision and depth, and it is easy to be manipulated by funds. Retail investors seeking profits in the secondary market is like snatching food from a tiger's mouth. The primary market can make your assets snowball faster. For example, among 10 projects, 4 doubled, 2 doubled, 1 doubled, and the worst 3 broke the issue price. In this way, you can calculate how much net profit you can earn, and then continue to reinvest with the principal + profit to maximize your profits.
The above 3 points are for brothers who are familiar with the primary market. If you don't understand, don't try!