A secondary market is a financial market where previously issued securities or assets are traded between investors. This contrasts with a primary market, where new assets are initially sold. In the digital asset space, secondary markets include cryptocurrency exchanges and NFT marketplaces. These platforms provide liquidity and facilitate price discovery for digital holdings.
Context
News often covers secondary market activity in crypto, reporting on trading volumes, price fluctuations, and the listing of new digital assets. The liquidity and accessibility of secondary markets are crucial for the overall health and adoption of the digital asset ecosystem. Regulatory efforts frequently focus on establishing rules for these markets to protect investors and prevent illicit activities.
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