What is the web3 secondary market
The "secondary market" refers to the stage where tokens have been issued and are being traded on the public market. Investors can buy and sell tokens on various trading platforms, and the price is determined by market supply and demand.
Trading tokens on exchanges
Buying and selling tokens on centralized exchanges (CEX) and decentralized exchanges (DEX) is the most basic gameplay in the secondary market.
Centralized exchanges (CEX)
"Gameplay steps:"
• Register an account: Register an account on centralized exchanges such as Binance, Coinbase, Kraken, and complete KYC certification.
• Deposit funds: Deposit fiat currency or cryptocurrencies into the exchange account.
• Buy and sell tokens: Choose a trading pair (such as BTC/USDT, ETH/USDT) and perform buying and selling operations.
• Withdraw funds: After the transaction is completed, you can withdraw the tokens to a personal wallet or withdraw them as fiat currency.
"Notes:"
• Choose reputable exchanges.
• Pay attention to the exchange's fees and withdrawal costs.
Decentralized exchanges (DEX)
"Gameplay steps:"
• Connect wallet: Use MetaMask or other compatible wallets to connect to DEX such as Uniswap, SushiSwap, qkswap.
• Deposit funds: Ensure that the wallet has sufficient cryptocurrencies (such as ETH) and tokens to pay for transaction fees.
• Choose a trading pair: Select the tokens to be traded and perform the exchange.
• Complete the transaction: Confirm the transaction and wait for confirmation from the blockchain network.
"Notes:"
• Ensure the security and reliability of the DEX platform.
• Pay attention to fluctuations in network transaction fees (Gas fees).
Participate in liquidity mining
Liquidity mining is a way to earn transaction fees and platform reward tokens by providing liquidity to decentralized exchanges.
"Gameplay steps:"
• Choose a platform: Choose liquidity mining platforms such as Uniswap, SushiSwap, PancakeSwap.
• Provide liquidity: Deposit equivalent amounts of two tokens (such as ETH and DAI) into the liquidity pool.
• Obtain LP tokens: After depositing, you will receive liquidity provider tokens (LP tokens) representing your share.
• Earn profits: Earn transaction fees and platform reward tokens by holding LP tokens.
"Notes:"
• Understand the risk of impermanent loss.
• Pay attention to the security of the platform and the yield of the liquidity pool.
Participate in token staking
Staking tokens can earn rewards from projects, usually by participating in the project's consensus mechanism (such as PoS).
"Gameplay steps:"
• Choose a project: Choose a project that supports token staking.
• Stake tokens: Deposit tokens into the project's staking contract.
• Obtain rewards: Receive project tokens or other rewards based on the staked quantity and time.
"Notes:"
• Understand the staking period and unlocking rules.
• Pay attention to the staking return rate and risks of the project.
Trade NFTs
The NFT market is another highlight of the web3 secondary market, focusing on the trading of unique assets such as digital artworks, virtual real estate, and game items.
"Gameplay steps:"
• Choose a platform: Use NFT trading platforms such as OpenSea, Rarible, Foundation.
• Connect wallet: Connect to the platform using wallets like MetaMask.
• Browse and purchase: Browse NFT artworks on the platform and purchase based on demand and preference.
• Sell NFTs: List the held NFT artworks for sale on the platform, set prices and selling conditions.
"Notes:"
• Pay attention to the platform's fees.
• Verify the authenticity and copyright of NFTs.
Summary
The web3 secondary market provides investors with diverse gameplay and opportunities. Whether it's trading tokens on exchanges, participating in liquidity mining, trading NFTs, or token staking, each gameplay has its characteristics and risks. Understanding market trends and choosing a strategy that suits you can help you achieve ideal returns in the web3 secondary market.