A must-read for newcomers in the crypto world! In the crypto market, every coin must go through an angel round, private placement, and crowdfunding before it can be listed on trading platforms, leading to significant price fluctuations.

Private placement refers to the internal purchase price enjoyed by a select group of people before a coin is made public. Since the issuance price is lower than the internal purchase price, the price typically sees a significant increase upon listing on the exchange, making private placement the safest and lowest-risk option.

Currently, ordinary individuals cannot participate in private placements, which are primarily contracted by wealthy figures in the crypto world and investment institutions, often with twenty to thirty companies fully utilizing the private placement quota worth hundreds of millions. They then wait for the tokens to be listed on exchanges to profit from the price differences in the secondary market.

Among the participants in the private placement stage, some do not use their own funds but act like large wholesalers, selling their quotas to smaller wholesalers, allowing them to pool funds together. This has given rise to another term: delegated investment.

We are all familiar with Ethereum; at the time, the private placement price was 1.89, and now, one can imagine the astonishing multiple difference.

In short, before being listed on exchanges, investments are open during the early stage, which is the primary market. Once it is listed on exchanges with substantial capital entering, it becomes the secondary market.

The secondary market has better liquidity, allowing for buying and selling at any time, with stronger cash conversion ability. However, due to the convenience of quick transactions, many investors tend to be more anxious, with more speculators, and the returns are not comparable to the primary market. The primary market represents true value investment, with participation prices far below the listing price, and the low price itself ensures low risk and high returns. However, the primary market requires a relatively long process to realize returns, which tests investors' vision and patience.