Yes, the significance of building digital currency Stock Exchange is to make the circulation of virtual currency convenient for people's lives, and the most important significance is to promote the development of finance. As we all know, digital currency is based on blockchain technology and platform, and it is also the most typical application of blockchain. Take Bitcoin as an example, its platform provides the function of transferring money between users, but it does not provide the function of transaction and payment, which makes Bitcoin unable to communicate with the outside world, let alone really circulate, and thus cannot become a real currency. In order to solve this problem, the exchange was born.

In addition to trading and payment, the specific functions of the exchange are roughly asset management, matchmaking and asset liquidation. Needless to say, transaction, payment and asset management, the matchmaking transaction mentioned here is the exchange between coins, such as the exchange of Bitcoin into Ethereum. Of course, the exchange also provides the functions of recharging and withdrawing cash. An exchange can be defined as a centralized ledger, but it is not on the chain.

On the other hand, the exchange also plays the role of a stock exchange, which makes the ICO project possible, and all kinds of tokens can be raised and issued through the exchange. Although all websites and platforms related to digital currency trading and ICO projects in China are blocked at present, exchanges play a very important role in digital currency, so I have to mention it.

Some people must think that an exchange is a combination of banking and securities trading. But not only that, the exchange also has the functions of futures and financial management, that is to say, it also has the attributes of financial institutions such as futures exchanges, brokers and fund companies. In addition to these, the exchange actually has the function of supervision, because there is no supervision. Therefore, digital currency Stock Exchange can be regarded as a super financial center.

1. How does the exchange make a profit?

The first is the transaction fee. As a platform, naturally, it is all relevant digital currency trading, exchange and futures trading commissions, withdrawal fees, user margin interest, etc. , has become the profit model of the exchange. Furthermore, in the ICO project, you can naturally get a considerable commission, and you can also get a large number of tokens at one time and become a major shareholder. Then, through the deposits and cash flows in the hands of users, you can get a lot of income. Some exchanges can even issue their own tokens, which obviously becomes a centralized and unregulated profit machine. Of course, some exchanges choose to abscond with money, which is a disaster and makes speculators lose their money. Therefore, it has always been said that investment needs to be cautious.