# Primary vs Secondary Market: What is the Difference?

Let's imagine that Apple launches a new iPhone. The first to access it are authorized distributors and large companies (that is the primary market). The rest of us buy at retail stores or online (secondary market).

In traditional finance it works like this: the primary market is "reserved" for VIP investors and institutions with a lot of capital. Ordinary people enter through the secondary market, where stocks, bonds, and options are traded.

**And in crypto?**

The logic is identical:

- **Primary crypto market** = IDO platforms, private token sales. Only early birds with connections or sufficient capital to bear the risk are allowed in.
- **Crypto secondary market** = exchanges like Gate, Uniswap, DEXs. Here everyone can buy tokens after the initial launch.

The key difference: in crypto, it's not always about the amount of money, but whether you have access to the private sale or if you are willing to speculate on a new project.

**Bottom line**: The secondary market democratizes access. Without it, retail investors like us would never enter these opportunities.