Primary vs Secondary Markets: What is the Difference?

Let's imagine an iPhone launch. Apple first sells to authorized dealers in large quantities (that is the primary market). Then, those dealers sell individual units in retail stores for you and me to buy (secondary market).

In traditional finance it works the same:

The primary market is where companies launch new stocks or bonds, but only “qualified” investors and large institutions can participate from the start. The secondary market is the stock exchange where anyone can buy those same already issued stocks.

Now in crypto, the dynamics are practically identical:

• Primary market: Token sale platforms (IDO, ICO, etc.) → Only those with privileged access or sufficient risk appetite for new projects invest.
• Secondary market: Decentralized or centralized exchanges → This is where you and I buy tokens after the initial sale has ended.

The key difference: in crypto, it's not so much about quantity, but rather about who has access and how much risk they are willing to take. Early buyers bet on projects before the market validates them; we in the secondary market simply trade what already exists.

In summary: Primary market = direct sale from the project (limited access). Secondary market = open to all (open trading).