Digital Exchange

Definition ∞ A digital exchange is a platform where digital assets can be bought and sold. These venues facilitate the trading of cryptocurrencies, tokens, and other digital representations of value. They operate by matching buy and sell orders from participants, providing liquidity and price discovery mechanisms. Digital exchanges are fundamental infrastructure for the digital asset economy.
Context ∞ The ongoing discussion regarding digital exchanges largely pertains to regulatory oversight, security measures, and the introduction of new asset classes for trading. Debates frequently address market manipulation concerns, the adequacy of investor protection frameworks, and the technological advancements required to support high-frequency trading. Future trends suggest a continued push towards greater regulatory clarity and the expansion of services beyond simple asset trading.