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How to Make a Difference Between Digital Currency and Cryptocurrency?

Many people are confused with the two words, cryptocurrency, and digital currency, and uses them interchangeably like they are the same thing, but they are two different things. Let’s have a look at digital currency vs. cryptocurrency.

Digital Currency

Money used on the internet and are only present in digital form are digital currencies. Though it is not possible to touch the digital currency with your hands, it carries all the characteristics of traditional money. You can use them to buy things, pay for any services in the online stores, and also you can acquire them or exchange them. When you make a transaction with the digital currency, you can make transactions all over the over with no geographical limitations. And if you want to transfer your digital money in physical form, you need to visit an ATM or a bank.


Cryptocurrency is among the feasible types of digital currency. Yes, digital money is an umbrella term for all the money existing in the digital area. Crypto is a particular sort of digital currency that is private, decentralized, and safe as a result of its security mechanisms. Instances of cryptocurrencies consist of Bitcoin, Ethereum, Litecoin, and so forth. There are thousands of less known coins. Unlike digital money, crypto is generated using a technology called blockchain. The blockchain is later utilized for crypto exchange, too.

The market of cryptocurrency is instead young and is still rather unpredictable, but it does not stop users from investing as well as utilizing crypto in their everyday life.

How cryptocurrencies and digital currencies different from each other?

There are some significant distinctions between these two types of currencies. The most important difference between them is centralization. Digital money is managed by organizations and institutions as well as all the deals are kept track of. Likewise, digital money, just like real-life money, is issued by the federal government establishments or central banks of a taken country.

Crypto is, as we have currently discussed, decentralized, so there is no authority regulating it. The value of crypto, for example, is mostly figured out by the community.

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James E. Allred

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