Dec 2, 2024: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — U.S. Economy Growth Driven by Improved Productivity

If U.S. economic growth is strong, why is the Federal Reserve considering interest rate cuts? This question was recently posed to Fed Chair Jerome Powell. Instead of focusing solely on the Fed's actions, we should explore the reasons behind the robust growth, and see how it can be sustained.

Real GDP is expected to exceed pre-pandemic levels for the second consecutive year. Typically, strong growth raises concerns about overheating, but inflation has actually fallen. Recent growth is largely due to increased productivity and a growing workforce, which are not inflationary and can help rebalance supply and demand.

A significant factor behind this success is the rise in labor productivity, averaging 2.3% over the past two years — faster than the four years before the pandemic. This uptick is linked to a surge in new business applications, especially in the tech sector, as the pandemic's economic shifts and relief measures lowered barriers to entrepreneurship, particularly benefiting underrepresented groups.

The boost in productivity also reflects workers moving to roles better suited to their skills, a trend accelerated by the 

. This mobility has been essential for productivity gains, as higher job turnover correlates with increased business dynamism.

However, sustaining higher productivity is a challenge. The Fed must avoid overly restricting the economy, as high interest rates can deter investment in technology. Additionally, a gradual cooling of the labor market, with declining job quits, is concerning.

For policymakers, monitoring labor market dynamics and business formation is crucial. If these indicators decline, productivity and growth could wane. The U.S. economy has made significant progress, and maintaining this momentum is essential.

Weekly Crypto Highlight — Sui Is Poised for Growth

Bybit has released the Sui ecosystem report, with its key takeaways below. (Read the full report 

: Sui has achieved impressive performance, processing over 297,000 transactions per second (TPS) while maintaining low latency. This positions it among the fastest blockchains available.

: In 2024, Sui's market capitalization skyrocketed over 1,000%, reaching $9.5 billion and reflecting strong investor confidence and growing adoption.

: The total value locked (TVL) in Sui’s DeFi ecosystem has surpassed $1.5 billion, ranking it 11th among major blockchain networks and highlighting its rapid growth in 

: The launch of the Grayscale Sui Trust has significantly increased institutional interest, resulting in an 89% price surge for the SUI token in Q3 2024, indicating its appeal to accredited investors.

: Sui is making strides in the gaming sector, introducing the SuiPlay0X1 handheld gaming device and various 

, enhancing user engagement and expanding its ecosystem.

Developed by Mysten Labs, Sui is a Layer 1 

 (PoS) blockchain launched on May 3, 2023. Its object-centric data model allows for parallel transaction processing, enhancing throughput and reducing latency. Its use of the Move programming language ensures resource safety through rigorous bytecode verification, mitigating common blockchain vulnerabilities.

: Partnerships with firms like Copper and Zero Hash strengthen Sui’s infrastructure and credibility in the financial sector, enhancing its offerings in digital asset custody and transaction facilitation.

: Sui’s DeFi sector is thriving, with leading protocols like 

 offering diverse financial services. In gaming, initiatives such as the SuiPlay0X1 device and various web3 projects bolster user engagement.

In summary, Sui is poised for continued growth, driven by technological innovations that are expanding its presence in both DeFi and gaming.

Advanced

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Weekly Institutional Insights: Sui Poised for Growth; U.S. Economy Driven by Productivity Growth

Chill Guy is a viral meme illustration that took social media by storm before a crypto project used the meme to launch a Solana-based token. Learn more here.

What started as a simple illustration of a laid-back dog has become a global meme sensation, with the cartoon character known as Chill Guy dominating both social media trends and cryptocurrency markets. Created by artist Phillip Banks in October 2023, the easygoing canine character sparked a viral movement that has attracted major brands worldwide.

This article follows Chill Guy’s transformation from a social media sensation to a cryptocurrency asset. We'll examine its viral beginnings, community growth, market impact and what potential investors can expect from CHILLGUY in the future.

 is a viral meme illustration by artist Phillip Banks, depicting a laid-back dog in casual clothes whose easygoing attitude took social media by storm before a crypto project used the meme to launch Just a Chill Guy as a Solana-based token.

What Does Just a Chill Guy Aim to Achieve?

The CHILLGUY meme coin aims to spread a "Why worry?" philosophy into cryptocurrency markets by embracing the laid-back, stress-free attitude that made the original meme go viral. The project transforms this easygoing vibe into a community-driven token, where being low-key isn't just a catchphrase — it's a shared mindset among holders.

The CHILLGUY community brings this philosophy to life by sharing endless variations of the CHILLGUY meme across social platforms. Through market swings and viral trends, CHILLGUY keeps his iconic pose: hands in pockets, subtle smirk, perpetually relaxed.

Just a Chill Guy (CHILLGUY) operates as a Solana Program Library (SPL) token on the 

 blockchain, leveraging the network's ultrafast speeds and low costs to ensure smooth trading. The token was created using Pump.fun, a specialized platform that lets users launch Solana-based tokens without any fees, removing traditional barriers to token creation.

CHILLGUY is a community takeover (CTO), meaning it's completely owned and directed by its token holders with no central team in control. This decentralized structure ensures the project stays true to its community-driven nature, its holders collectively guiding its future while embodying the laid-back spirit of the original meme.

The CHILLGUY token launched with a maximum supply of 1 billion tokens, of which 999,965,435 are currently in circulation. This near-complete distribution of tokens to the market supports active trading and community participation.

What makes CHILLGUY's tokenomics particularly notable is its widespread distribution across more than 142,000 unique holders (as of Nov 27, 2024), achieved in just 12 days. This rapid expansion of its holder base demonstrates strong community adoption and aligns with the project's decentralized, community-driven principles.

CHILLGUY has exploded across social media, especially on TikTok, where the meme has amassed hundreds of millions of views. Its laid-back character resonates with users worldwide, inspiring countless creative adaptations.

Major brands worldwide have embraced CHILLGUY in their marketing campaigns. From Sprite Europe to NFL on CBS, the character has resonated across mainstream media, even catching the attention of global figures like El Salvador's president Nayib Bukele.

The “Chill Guy” meme’s influence spans multiple social media platforms, with a growing community of followers: 96.6K on X (

). On the other hand, the meme token itself also has a vast community, with 39.9K on X (

) and an active Telegram channel of over 15,000 members. These numbers reflect the meme's ability to engage audiences across different platforms.

The token's popularity in cryptocurrency markets matches its social media success, with CHILLGUY maintaining a substantial 24-hour trading volume of over $330.03M as of Nov 27, 2024. This high trading activity demonstrates the strong market interest in CHILLGUY beyond its meme status.

Looking to trade Just a Chill Guy tokens? Bybit now offers the CHILLGUY/USDT Spot trading pair and CHILLGUYUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While CHILLGUY has maintained strong trading volumes and continues gaining mainstream attention through its viral social media presence, investors should carefully weigh its strengths and risk factors before making investment decisions.

With its widespread brand adoption, sustained trading activity and explosive community growth of over 142,000 holders, CHILLGUY demonstrates significant market potential. However, meme coins are inherently volatile. Potential investors should 

 and invest no more than they can afford to lose.

CHILLGUY is the latest viral sensation to harness the power of the attention economy to convert social media momentum into crypto market success. While CHILLGUY has already demonstrated its ability to capture mass appeal, its position as a leading meme token will depend upon how effectively it maintains its cultural relevance and community engagement in this fast-moving market.

Intermediate

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Just a Chill Guy (CHILLGUY): Embracing the Art of Nonchalance

Zircuit (ZRC) combines optimistic and ZK rollups with AI-driven security, offering fast, low-cost Ethereum Layer 2 solutions. 

 network has flourished, mainly due to the ongoing network congestion, high fees and poor scalability of the latter. Many of these platforms use rollup technology, whereby batches of multiple transactions processed off-chain are bundled together and posted in bulk to the underlying Layer 1. Ethereum-linked rollups mainly come in two varieties 

 (ZK). While optimistic rollups boast lower computational overhead, the ZK variety of these networks features a higher degree of security.

Zircuit (ZRC) is a Layer 2 chain that adopts a hybrid approach, combining the elements of optimistic and 

. This lets the platform offer the performance benefits of optimistic technology along with the security of ZK validity proofs. To further enhance overall security, Zircuit uses a unique 

 (AI)–driven system of monitoring for malicious transactions.

 (ZRC) is a hybrid Layer 2 blockchain that combines the features of optimistic and ZK rollups, and uses AI-driven monitoring for potentially harmful transactions. 

 rollup development technology, a popular framework for building optimistic rollup networks. Additionally, it uses zero-knowledge proofs, which lets the platform offer the best of both worlds 

 the performance benefits of optimistic rollups and the security of ZK technology. Zircuit is 

The Zircuit project takes security very seriously, and has introduced a unique system of AI-based protection against malicious transactions at the sequencer node level. The use of ZK proofs and an AI-based protection system make Zircuit one of the most secure platforms in the competitive world of Ethereum Layer 2 chains.

Along with its excellent security benefits, Zircuit also boasts low costs, fast transactions, excellent scalability and 2-second block production intervals. All these features make it an ideal environment for 

 (DApps) in various niches, particularly 

 (DeFi). In fact, the leading protocols within the Zircuit ecosystem are all dedicated to the finance niche, with Zircuit Staking being the largest application by TVL.

With its heavy focus on DeFi, Zircuit aims to become a leading liquidity hub for various token types within the sector, including 

. These assets can be staked through the Zircuit staking program — supported by the platform's Liquidity Hub — to earn staking APRs, airdrop rewards and points based on the Zircuit Point program (covered further in our article).

The platform also operates a secure native bridging solution, 

, to help users transfer assets between its Layer 2 network and Ethereum Layer 1.

The company behind the project, Zircuit Ltd., was founded in 2021 in Canada by Dr. Martin Derka, Jan Gorzny and Angel Xu. Zircuit's testnet was launched in November 2023, but made headlines in April 2024 when the project reported that its 

 (TVL) had soared past $2 billion. While testnet TVLs are more a gauge of future potential for a blockchain than an indicator of its existing worth, the news attracted the attention of industry observers toward the platform. Following its highly publicized testnet success, Zircuit launched the first phase of its mainnet in August 2024. This was followed by the launch of the platform's native token, ZRC, in November 2024.

As a typical rollup, Zircuit uses an off-chain sequencer node to batch and organize Layer 2 transactions for subsequent posting to the underlying Ethereum Layer 1. The batches have ZK validity proofs attached to them to signal to Layer 1 validators that they’re free from fraudulent transactions. Zircuit's architecture also includes prover nodes, whose job is to produce these validity proofs.

However, unlike other rollups using ZK proofs (also known as validity proofs), Zircuit doesn't generate validity proofs for every block of transactions. Instead, some blocks have pre-generated template proofs, while others go through the process of having a dedicated validity proof created for them. After a few blocks featuring validity proofs, there are several more that utilize template proofs. The image below illustrates this approach.

The key reason Zircuit has adopted this form of proof design is that the process of generating ZK proofs is computationally intensive. By using template proofs for some of the blocks in a sequence, Zircuit can reduce the overall computational overhead. However, the project’s team has stated that the template proof model is temporary, and will be phased out in the future. At that stage, the platform will move to generating ZK proofs for each block.

Zircuit features a highly modular design whereby provers — responsible for generating validity proofs on the platform — can easily be plugged into or removed from the network. This modular approach is distinct from the standard ZK rollup design, in which provers are more tightly and less flexibly integrated into the overall architecture.

As noted earlier, Zircuit uses a dedicated sequencer to organize and batch transactions into blocks. The platform also applies AI-driven monitoring at the sequencer level (the Sequencer Level Security, or SLS) to spot and exclude fraudulent transactions before they’re finalized on Layer 2.

When transactions are first posted to Zircuit, they enter the 

 — a temporary area from which the sequencer picks and organizes individual transactions into blocks. The mempool is being monitored at all times, using AI algorithms to identify suspicious transactions. If a transaction in the mempool raises a flag, it's quarantined and assessed for validity before the sequencer can include it in a block. The image below shows how this process works.

One of the distinct features of Zircuit is its hybrid architecture, which combines the properties of optimistic and ZK rollups. At the base level, Zircuit is built using Optimism's Bedrock development framework, a technology popular for optimistic rollup networks. However, the use of ZK proofs — or, to be more precise, a combination of validity proofs and template proofs — ensures that Zircuit enjoys a security level that standard optimistic rollups normally can't match.

The use of AI-based SLS provides robust security to Zircuit, complementing the already highly secure ZK proof system. Very few Layer 2 networks in the industry currently feature anything similar, making the platform a true pioneer of AI use for sequencer-level operations.

Like any rollup based on Optimism Bedrock, Zircuit enjoys EVM compatibility. This allows for smooth interoperability with the underlying Ethereum Layer 1. EVM compatibility also makes it easy for developers familiar with Ethereum’s environment to develop Zircuit-based DApps, or to port existing Ethereum applications to the platform. Developers can take advantage of technologies commonly used for Ethereum (e.g., the Solidity programming language and the Hardhat development framework) to build Zircuit applications and smart contracts.

Zircuit Bridge is a native bridging solution designed to easily transfer tokens between Ethereum and Zircuit. It boasts high security, low transaction fees and fast transfers, and allows users to move a variety of cryptocurrencies between Ethereum and Zircuit, including ETH, 

) and LRTs like Super Symbiotic LRT (weETHs). As of late November 2024, the total number of cryptos supported by the bridge is close to 30.

Zircuit has launched a reward program called Zircuit Points. Users can earn these Points by staking supported assets, and by participating in the Build to Earn initiative (more on this below). Accumulated points will be converted to ZRC tokens in the future. Points also create the opportunity to qualify for token airdrops.

The primary way for most users to earn Zircuit points is via 

. The Zircuit Staking program lets you stake LSTs, LRTs, popular stablecoins, some wrapped tokens and Ether (ETH) to earn points. Using LSTs and LRTs, you can earn yields (along with native Zircuit staking APRs and Points) from the respective staking and restaking platforms that issue these assets.

Zircuit Points earned via staking have different multipliers, depending upon the asset. For example, Ether has a multiplier of 0.5, while LSTs, LRTs and stablecoins have a multiplier of 1. Multipliers for different LST and LRT assets may be subject to change in the future.

Build to Earn is another way to qualify for Zircuit Points. The program allows developers to contribute to the Zircuit ecosystem and earn Points in a number of ways, including:

Launched in November 2024, ZRC is the platform's native cryptocurrency. It's an 

 asset deployed on both Zircuit and Ethereum Layer 1. ZRC is mainly used for reward distributions, and participation in token airdrops for ecosystem DApps. Currently, transaction fees on the network are paid in Ether. It's possible that, in the future, ZRC might be used for some transaction fee payments.

ZRC is also used for rewards under the Gas Rebate program. As users conduct transactions on the platform, they 

. Zircuit’s Gas Rebate program provides rebates to offset some of the incurred fees. The amount of ZRC earned as a rebate is proportional to the amount spent on gas in ETH; the project's documentation states that for each ETH spent on gas, the user earns 125% in ZRC. All kinds of gas fee payments qualify for the rebate, including ordinary asset transfers and transactions involving interaction with Zircuit DApps.

ZRC is a supply-capped token, with a maximum and total supply of 10 billion. The token's supply allocation shares are as follows:

The ZRC token is available on Bybit's Spot market as a swap pair with USDT (

 to grab a share of the 5 million ZRC prize pool. New users who sign up for a Bybit account and complete identity verification can earn ZRC rewards by accumulating a deposit volume of at least 2,000 ZRC, or by depositing 100 USDT and trading 100 USDT worth of ZRC via their first trade with Bybit. 

Meanwhile, existing users can qualify for ZRC rewards by trading at least 500 USDT worth of ZRC on the Bybit Spot market, with the possibility of earning up to 10,000 ZRC based on trading volume. The 

 event will run through Dec 10, 2024, 8:59AM UTC.

Zircuit is among the pioneering Layer 2 platforms to adopt a hybrid design for a rollup network. Thanks to the platform's architecture, users can take advantage of low transaction costs, fast transfers and great scalability while enjoying the benefits of high security delivered by ZK proofs and AI-driven mempool monitoring. AI-based monitoring for fraudulent transactions is a particularly notable feature of the platform and is undoubtedly among the most advanced technologies employed in the blockchain industry.

User security combined with faster and cheaper transactions for the Ethereum network — all in one package — is now feasible, thanks to Zircuit's innovative technology and unique approach!

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What Is Zircuit (ZRC): Where Performance Meets Cutting-Edge Security

Bybit is celebrating its sixth anniversary with the #Super6Bybit event, offering a $1.2 million prize pool and focusing on its bbSOL token.

Daily Top Performer — Virtuals Protocol (VIRTUAL)

On Wednesday, the S&P 500 fell 0.38% as tech stocks dropped and inflation data reinforced a hawkish Fed outlook. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.40%, with Bitcoin and Ether dropping by 1.86% and 1.79%, respectively in the past 24 hours.

Today's top performer is VIRTUAL, which surged 53.6% following the launch of the $MUSIC token by Agentstarter, featuring AI-driven music video capabilities and community-focused tokenomics.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. 

, using AI to create music videos and offering features like animated videos, voice mimicry, and karaoke tracks. The tokenomics allocate 60% for airdrops, 20% for liquidity, and 10% each for the development team and Virtuals Protocol.

Check Out the Latest Prices, Charts, and Data of 

Bybit is celebrating its sixth anniversary with the 

, offering a $1.2 million prize pool and focusing on its bbSOL token. Launched in September 2024, bbSOL is the first exchange-backed Liquid Staking Token on Solana, providing liquidity and staking rewards. The campaign, running from November 28, 2024, to January 6, 2025, invites participants to build, transform, and supercharge their bbSOL through tasks, leaderboards, and community milestones, increasing rewards. The event combines gaming mechanics, community engagement, and opportunities to win prizes while promoting innovation and growth in the crypto space.

Yesterday, there were no flows in BTC Spot ETFs, including GBTC and non-GBTC categories.

. Stake BNB on Lista's portal to get slisBNB, then deposit it into Astherus to earn airdrop points with multipliers (3X for Lista, 1.15X for Astherus). No lockup is required, and slisBNB is the most efficient option.

Beginner

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Bybit Celebrates 6th Anniversary with $1.2M Prize Pool and bbSOL Supercharging Campaign

Bybit Learn

Trading

What are primary and secondary markets? Do they matter in crypto trading? Find out more about how they work and the differences between them in this article.

If you're interested in cryptocurrency, it's essential to understand how crypto markets work. They let you buy and sell crypto, so they're an important part of 

 in tokens. When looking at various crypto markets, you'll discover the option of choosing between primary markets and secondary. Which type of market is better? 

This guide will explain all the details so you can learn how both market types work — and discover the best style for your situation.

Crypto markets are a popular method for buying and selling cryptocurrency online. They are essentially a digital version of stock markets where you can view crypto prices and invest in cryptocurrencies.

Anywhere a cryptocurrency can be sold is a type of crypto market. Some of the most popular crypto market platforms include Bybit, Binance and Uniswap. Crypto markets can be accessed through a website or a mobile app. Whatever the design of the market, it will have one or more cryptos you can purchase. Markets typically provide helpful data, such as details about the coin's price history or trading volume. Some crypto markets also have additional services, such as 

Crypto markets come in all shapes and sizes. Some are a single webpage selling one crypto, while others are multimillion-dollar businesses offering their customers thousands of crypto offerings and other related services. No matter what type of business it is, a crypto market falls into one of these two categories.

A primary market is a market that generates the crypto it offers. Usually, in the crypto world, primary markets come in the form of initial coin offerings (

). A company creates coins and sells them to raise funds for the rest of its crypto project. Some companies also continue to sell newly minted coins on their private exchange, which also counts as a type of primary market.

Secondary markets are third-party sellers. Once people have purchased or mined a cryptocurrency elsewhere, they can take it to a secondary market to sell or trade for other currencies. Just as with the stock market, secondary market prices may move up and down as supply and demand affect crypto values.

A primary market is a type of crypto market that sells new coins no one else has owned before. Sometimes, the organization providing the coins in a primary market is the entity that creates the coins, and can charge whatever it wishes for the tokens. In other instances, organizations may sell their coins on a third-party platform through launchpads and/or ICOs.

A primary market always starts with coin generation. Crypto organizations that run their own independent blockchain may create a token based on their own unique design. Other companies may choose to base their token on an existing blockchain, such as the 

Once the coin is generated, the primary market then begins offering it to customers. If the company is still new and the token hasn’t ever been offered before, the event is called an

. However, some crypto primary markets continue to 

 long after the rest of their organization is up and running. Whether it's an ICO or not, coin prices and supplies can be either static or dynamic.

Customers buying items on the primary market may have several different ways to purchase the tokens. Some primary markets let people link a debit or credit card or bank account. Others may accept payment in the form of other crypto tokens, such as BTC or USDT. Once you buy the coins, the primary market transfers them directly to your crypto wallet.

Benefits and Risks of Trading in a Primary Market

Like any other venue for crypto trading, primary markets come with both pros and cons.

Initial coin offerings on a primary market can be very exciting. If the crypto project is successful, the coin's initial price might be the lowest price the coin ever has. For investors, ICOs are a great way to buy into promising projects as early as possible.

Another advantage of a primary market is its convenience. You get tokens straight from your provider, and can easily use the tokens to access the provider's other services. For example, buying game tokens on the primary market lets you instantly link them to your account and start playing the game for which the tokens are designed to be used.

Compared to buying crypto from a private seller, primary markets are more reliable. Since you’re buying them directly from the group making them, you can be confident you won't be given a fake crypto key. Also, choosing to buy the tokens from a crypto launchpad that has done extensive checks on its crypto projects will also give you more confidence that you won’t be scammed.

The main risk of buying on a primary market is that the coin creator usually sets the price. If the cryptocurrency isn't actually all that desirable, no one else may be willing to pay that price. You might find that the tokens you buy on a primary market never sell for enough money to recoup your investment.

Another problem with primary market purchases is that you often have to buy coins at ICOs without seeing any proof of concepts the creators are describing. In some cases, a person might not have enough information to make an informed decision about the crypto they're buying. This could easily lead to crypto projects disappearing with users’ funds, a common 

. As such, caution should certainly be exercised when buying on a primary market.

A secondary market is a crypto market that lets you buy and sell crypto sourced from other traders or organizations. Prices fluctuate based on demand, and you can often choose from a broad catalog of different cryptos.

A secondary market is essentially a third-party seller that facilitates crypto exchanges. The secondary market does not create crypto itself. Instead, it creates an interface for users to sell their crypto back and forth.

At the simplest level, a secondary crypto market lets one person list crypto for sale at a certain price. Then another person can see this listing, agree to the price, and buy the crypto. The market will transfer the crypto to the new owner and release the funds to the seller. In most secondary markets, millions of these transactions are happening simultaneously. Prices move around according to supply and demand, and the market might automatically convert between various cryptos and fiat currencies to finalize trades.

Secondary markets offer a variety of crypto storage options. Most will let you connect your account to an independent crypto wallet. In these cases, the crypto you buy goes straight into your wallet. Many secondary markets also offer hosted wallets. The market will store your crypto for you, so you can buy and sell it directly through the market.

Benefits and Risks of Trading in a Secondary Market

There are both pros and cons to trading in secondary markets.

Secondary markets are one of the best ways to get involved in the crypto community. Just taking a look at most secondary markets will provide you with valuable insight into cryptocurrencies. You can research past prices and see where a crypto is likely to move next. Millions of people are involved with secondary markets each day, so these venues are an essential part of the crypto industry. And since they're such a great gauge of supply and demand, they’re often the price setters for cryptocurrency.

Secondary markets make it extremely easy to buy or sell crypto. They handle details like funding your account and storing your crypto so you can focus on purchasing the best tokens for you. This helpful service ensures that anyone can obtain crypto even if they aren't a tech expert. A good market streamlines the whole process, and uses a simple user interface to show you how crypto purchases work.

Secondary markets often have other helpful features, too, such as trading advice, explaining popular crypto terms or updating you on industry news. Services such as currency conversion and options trading make secondary markets far more than just places to purchase crypto. Even users who aren't trying to day-trade crypto can benefit from secondary market services.

Though secondary crypto markets are certainly convenient and useful, they do have some downsides. Due to the way they work, secondary markets are very volatile. The crypto you buy on the market one day might lose half its value the next. Though secondary markets come with the potential for a big profit, they also have the potential for losses.

Another consideration is that the quality of a market depends entirely on the service providing it. If the market has poor security, hackers can take your funds. For example, the highly publicized FTX bankruptcy involved hackers stealing

 from exchange users. It's essential to do your research and pick a trusted market before sharing any of your financial details.

Primary vs. Secondary Markets: The Similarities

For all of their distinctions, primary and secondary markets still have several things in common. Here are some of these similarities you can expect to find in most crypto markets.

Both primary and secondary markets are part of the decentralized finance (

) world. They offer digital tokens that you can use in a variety of online transactions. Since the funds available in both markets aren’t fiat currency, they’re bound by different laws and regulations.

Whether you buy on a primary or secondary market, the product you end up receiving is a cryptocurrency token. Neither type of market sells tangible goods or services.

Neither a primary or secondary market can guarantee that a crypto's price will remain stable. When you purchase a coin, there’s always the possibility its value will increase — but there's also a chance its price will drop. The only way to minimize risk is by doing your own research on coins before purchasing them, so that you can make wise investment choices.

Primary vs. Secondary Markets: The Differences

Despite some similarities, primary and secondary markets have fundamental differences. Here are the key ones you need to know about.

Primary and secondary markets have very different numbers of traders. While primary markets have relatively small trading volumes, secondary markets have extremely high ones, due to the sheer number of traders buying and selling various types of cryptocurrencies. 

Primary market prices are entirely dependent upon their creators’ preferences. Many markets have a set price for each token, which never changes. Meanwhile, secondary market prices are all about supply and demand. The same coin's value can change by hundreds of dollars in just minutes. Although this pricing system gives more insight into a coin's true value to the public, it also means there’s no constantly defined price for any crypto.

A huge difference between primary and secondary markets is in the cryptos they offer for sale. A primary market has a very limited selection of available cryptos. Most offer a single cryptocurrency, but some organizations that supply multiple token types will have two or three. Meanwhile, secondary markets can have almost unlimited options, with bigger markets letting you buy or sell hundreds of crypto types.

Which Should You Trade In — A Primary Market or a Secondary Market?

Primary markets offer the most exciting opportunities. Not only can you fund crypto projects you believe in, but you can sometimes get promising cryptos at a great price right before their value skyrockets. Furthermore, you might be entitled to some additional perks, available exclusively for early adopters. However, primary markets are often more challenging for beginners, with less user-friendly interfaces and requiring more research. Those who start throwing money into primary markets without taking the time to research a product can easily lose their investments.

Meanwhile, secondary markets are often a lot easier to work with. They have various cryptos to choose from, and they make it easy to buy, sell or store your crypto. Secondary crypto markets also tend to have useful services, such as user guides and tax preparation, so they're more convenient. Just keep in mind that when you purchase on the secondary market, your funds won't be going to the crypto creators.

Ultimately, the right choice depends upon your preferences and skills. Most traders can benefit from trying both markets. Fortunately, Bybit makes it easy to experiment with either one. With the same convenient account, you can trade on the traditional 

 to gain early access to novel crypto projects and invest in new products. These primary markets give crypto creators a way to offer their new coins directly to the Bybit community. 

 work by viewing our detailed guides on them.

Primary and secondary crypto markets both have important roles within the decentralized finance world. While primary markets consist of crypto creators offering newly minted tokens for sale, secondary markets let people buy and sell previously owned cryptos. If you want to get in on the ground floor and fund promising projects, primary markets might be for you. However, if you like trading popular coins in a convenient setting, you'll probably prefer secondary markets.

Primary vs. Secondary Markets: Does It Matter in Crypto Trading?

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Grab Up to 5,000 USDT in Rewards