Secondary Market Transactions

Definition ∞ Secondary market transactions in digital assets involve the buying and selling of cryptocurrencies or tokens between investors after their initial issuance. These transactions occur on various platforms, including centralized exchanges, decentralized exchanges, and peer-to-peer networks. The prices in the secondary market are determined by supply and demand dynamics, reflecting current market sentiment and asset valuations. This market provides liquidity for digital assets.
Context ∞ The significance of secondary market transactions lies in their role in price discovery, liquidity provision, and overall market efficiency for digital assets. Regulatory bodies increasingly focus on ensuring fair and orderly trading practices within these markets to protect investors. Discussions often address market manipulation, trading volumes, and the impact of institutional participation on asset prices.