Transaction principle digital currency

1. Although all websites and platforms related to digital currency trading and ICO projects have been blocked in China, the role played by exchanges in the field of digital currency is very important, so it has to be mentioned
Why do digital currencies need exchanges
as we all know, digital currency is based on blockchain technology and platform, and it is also one of the most typical applications of blockchain
taking bitcoin as an example, its platform provides the function of transferring money among users, but it does not provide the function of transaction and payment, which makes bitcoin unable to communicate with the outside world, let alone circulate, and thus cannot become a real currency
in order to solve this problem, the exchange was born
role of the exchange:
in addition to the above-mentioned trading and payment, the specific functions of the exchange are roughly asset management, matching trading and asset clearing, etc. To put it bluntly, it is equivalent to the Bank of digital currency. The matchmaking transaction here is actually to exchange for other currencies, such as bitcoin for Leyte. Of course, there are also some basic functions such as recharge and cash withdrawal. In principle, it is a centralized account book without being linked

on the other hand, the exchange also plays the role of stock exchange, making ICO (initial token issue) project possible
all kinds of token (token or token) can be raised and issued through the exchange
at this point, some people certainly think that the exchange is a combination of banking and securities trading
but not only that, the exchange also has the functions of futures and financial management, which means it also has the attributes of financial institutions such as futures exchange, securities companies and fund companies
it is not enough. In fact, the exchange also has the function of supervision, because there is no supervision. Therefore, the digital currency exchange can be regarded as a super financial center

the centralized exchange plays an important role, which obviously brings many security risks and trust crisis
all these are closely related to the violation of the "decentralization" advocated by blockchain
fortunately, some "decentralized" exchanges have emerged, which are based on the blockchain platform and rely on smart contracts to achieve the purpose of automation, de trust and transparency

let's briefly talk about how to build an exchange. Generally, a subject is registered first, such as the Singapore foundation, because the Singapore government encourages the development of blockchain, and high-quality project parties are registered in Singapore, which can be more recognized in the instry

the Singapore foundation can register by providing a company name and identity information of directors, and then it can do some legal compliance, which is also the advantage of the Singapore foundation. It can issue effective legal opinions to make the project compliance.

2. Digital currency is the proct of currency development to a certain stage. The issuance of digital currency is mainly to make transportation more convenient and also concive to the supervision of the economy.

3.

If you want to participate in the transaction of digital currency, you must understand the digital currency ecosystem

It can be said that digital currency exchange is the most important part of the whole instry. Digital currency exchange provides investors and traders with the capital channel to buy and sell digital currency. At the same time, the trading activities of the exchange determine the price of many digital assets

according to coinmarketcap, the capital flow of digital currency exchanges is huge, with the average daily trading volume of the top five exchanges exceeding US $3 billion

there are hundreds of digital currency exchanges around the world, some of which operate globally in mainstream markets, while some focus on niche markets

for example, AAX is committed to providing services for digital currency traders and institutional investors, integrating the digital currency world with the global economy, and providing unparalleled first-class technical capabilities using the matchmaking engine supported by lseg technology

many substitutes have successfully occupied a certain market share shortly after their launch. What digital currency exchanges have in common is that they together provide the development soil for these alternative currencies

digital currency is no longer limited to bitcoin. Other digital currency assets, such as eth, XRP, BCH, usdt, LTC, EOS, xtz, etc., have a place in the portfolio and diversification strategies of many digital currency dealers

At present, there are many similarities between digital currency trading and foreign exchange trading, because the basic principles, tools, indicators and strategies used in foreign exchange are also applicable to digital currency trading. AAX College's digital currency trading section discusses these topics in depth and extensively

blockchain protocol

blockchain is the underlying technology that makes digital currency possible. There are many kinds of blockchain protocols, and the technical characteristics, advantages and disadvantages of each protocol are slightly different

for example, bitcoin blockchain relies on mining and pow (proof of work) mechanism to process transactions, while another blockchain may use dpos (proof of entrustment) mechanism instead of mining. In addition to bitcoin blockchain, other noteworthy protocols include eth, hyperledger, EOS, XLM, Iost, kin, TRX and stem. Among these blockchain agreements, ETH (Ethereum) is commendable in promoting the rapid innovation of the entire digital currency ecosystem

Ethereum platform was created by vitalik buterin, which indicates that developers can make better use of the resources of the platform by using their own programming language solidity. Ethereum has made blockchain technology all the rage, creating a new world of innovative decentralized applications on the basis of smart contracts and custom tokens. At present, most of the substitutes are based on Ethereum's erc20 standard

the district centered financial movement, or defi for short, is also basically based on the Ethereum blockchain agreement

financial services

for every service in traditional finance, Ethereum based defi applications have corresponding alternative versions for everyone to access. The defi app allows users to create stable currencies, lend money and earn interest, send and receive payments, get loans, trade, take positions in the forecast market, enter the real estate sector, and so on. Smart contracts are the key to making decentralized services possible. Once certain conditions are met, the smart contract will automatically perform the pre agreed activities

at the same time, traditional finance also began to provide new customized services for the field of digital currency. At present, some fund managers provide investors with the option of adding digital currency into their portfolios, the trustee provides security services for investors who invest a lot of money in digital currency, and many analysts in mainstream media (such as Bloomberg) also have a strong interest in digital currency

digital currency hardware

for those who like to build their own security measures, the huge digital currency hardware market can provide professional traders and long-term holders with the tools they need. Trezor and ledger are the most famous hardware wallets. They essentially provide the same value for digital currency traders, that is, a more secure way to store digital currency

of course, digital currencies stored in hardware wallets cannot be traded in the market. Therefore, digital currency traders usually allocate funds between the hardware wallet and the exchange according to a certain ratio according to their own trading style preference

There are so many activities of

data aggregators and blockchain analysis

cross blockchain, which proces a large amount of data, and also spawns the emergence of sub instries, namely data aggregators and blockchain analysis instries. Companies such as coinmarketcap are the preferred source for quick inspection of digital currency and exchange data. They collect statistics on trading volume, liquidity, market value, price trend, circulation and the whole instry, such as the total amount of money, the number of markets, the market value of the instry and the proportion of BTC market value

people who are more interested in blockchain analysis can find the required data in websites like blocktivity. Here, you can view the relevant data of each indivial blockchain agreement, including the number of operations in the last 24 hours, the average number of operations in the last 7 days, the market value and Cui index, that is, the remaining available capacity after the actual usage of the current blockchain agreement. All in all, these websites can provide valuable insights for the blockchain instry

for example, the average number of operations of Ethereum in the past seven days was 667000, with Cui slightly higher than 50%, while the average number of operations of EOS in the same time range was 63 million, with Cui slightly lower than 50%. Technically, the performance of EOS protocol is more powerful than that of Ethereum. However, this can not prevent Ethereum from occupying 70% of the total market value of the most mainstream currencies

digital currency media and conferences

in today's world, almost everyone is the publisher of content. Without we media instry, such a large-scale instry will no longer exist. Digital currency has given birth to a wide range of media patterns, covering news media, KOL and related conferences for currency, public chain and code

digital currency head media include coindesk, cointegration, bitcoin magazine, decrypt, CCN, bitcoinist, newsbtc, etc. Some KOLs are also well-known, sometimes even more popular than the news media

YouTube celebrities, such as datadash, dollar villante, altcoin buzz, Ivan on tech and boxmining, have subscribers from 200K to 300K. In the field of digital currency trading, the top stars of cryptotwitter include venture coinist, cryptocred and cryptodon alt, with 211k, 140k and 120K fans respectively

if you want to have face-to-face communication with companies and people, digital currency and blockchain meetings should not be missed. Every year, there are many conferences around the world for investors, blockchain experts, start-ups, institutional financing, currency or agreement related communities. In 2019 alone, we sponsored and participated in blockchain live in London, the capital summit hosted by coinmarketcap in Singapore and the world mobile conference in Shanghai. We have had exciting meetings with other digital currency companies and major financial institutions, and established contacts with regulators from different jurisdictions

digital currency supervision

with the continuous growth of the market and audience of digital currency instry, in most cases, financial regulators are still developing relevant frameworks to protect investors and consumers. Regulators may take a very different approach, which is a challenge for companies operating across multiple jurisdictions

ring the ICO boom in 2017 and 2018, many projects were launched before the regulatory framework was established, while some projects did not meet the criteria of the jurisdiction and were suspended ring the fund-raising process. All this comes from how to classify digital assets, and the understanding of classification is constantly changing. At present, we divide digital assets into security token and practical token

in the past year, with the proposal of Libra, the promotion of supervision is also increasing. The central bank is also actively exploring the significance of blockchain technology to its policies and economic activities, and constantly publishing reports

the rapid development of digital money ecosystem

these components of digital money ecosystem are growing and developing in an orderly way, contributing to the increasingly sound instry. From the minority interest in 2009 to the active digital asset economy, digital currency has come a long way

However, in order to achieve the development and wide participation of the instry, a strong ecosystem is not enough. We need a better link between digital money and global finance. The better the combination of digital currency and traditional finance, the easier it will be for newcomers to understand the digital currency ecosystem

for every novice, as exchanges, financial services, media and regulators graally adapt to the expectations of mainstream consumers, the digital currency instry will further develop, which may improve investment outcomes

4. The transaction of digital currency on the platform is the same as the transaction of bank in reality.

5. Blockchain and distributed ledger technology make digital currency development more reliable
blockchain technology has been questioned by the collapse of the centralized currency exchange, but its potential to solve the trust and centralization problems of the existing information architecture has attracted a lot of attention. Blockchain technology first gained great popularity in the field of bitcoin and digital currency. It uses a single shared ledger to store information. It is no longer to let a single central organization obtain the account book, but to obtain multiple copies of the same distributed account book by different nodes in the peer-to-peer network. Shenzhen yuanzhongrui blockchain technology adopts advanced encryption technology to ensure that any new information in the account book can not be tampered, unless it meets some preset parameters. Moreover, this kind of Ledger has stronger defense against external attacks, such as network attacks, because this decentralized system does not have a single point of failure with high cost of centralized information architecture. At the same time, all trusted nodes can affect any modification of the ledger, provided that they meet the specific preset parameters. These changes will be immediately reflected in the ledger, and all trusted nodes can obtain relevant data to make correct decisions. It can also adjust the design of the distributed ledger, create a hierarchical system within the architecture, and configure appropriate access rights and different levels of authority
blockchain and distributed ledger technology are concive to change the management mode of land registration. At present, the credibility of the real estate market is at the lowest level, which is attributed to the inefficient and opaque property registration system. The system relies on the centralized acquisition of land registration and corresponding property transaction information. Using distributed ledger technology to obtain, manage and modify these information can ensure that the public will not be infringed by land transaction fraud. Similarly, distributed ledger can simplify and integrate cross instry and cross regulatory compliance process, because it contains real-time compliance information needed by government departments, banks, investors and other third parties. By integrating data points of multiple projects and providing feedback on beneficiaries' project participation, we can better track the implementation of social welfare plans
at present, the biggest problems of technology development include: transformation cost of unique data storage system, data reliability verification of network nodes or all levels, privacy and security dimension of decentralized data acquisition, and revision of information technology act. What's important is that blockchain technology will change the way the government interacts with citizens, and this huge change is bound to be resisted by civil servants. These are all possible problems. We should take immediate action to formulate a regulatory framework to guide application development in addition to adopting blockchain technology.

6. The transaction form of digital currency is only online transaction.

7. Generally speaking, it is sold directly into usdt or bitcoin on the exchange
then sell usdt or bitcoin into RMB through C2C transaction.

8. I think it's normal for this kind of part-time job to make less and less profits. It's the same for some profitable apps. It's very easy to make money at the beginning, but it's more and more difficult. More and more people are involved