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Digital currency is a type of currency that exists in electronic form. It is used to make transactions of payments and receipts to one another through your computer, mobile phone. The payment is made with the help of an internet connection. Money in the form of digital currency can be transferred to any place in the world in no time. Nowadays business is expanding rapidly. A smooth transaction of money is the base to sustain any business. With the use of digital currencies, companies around the world have become capable of making and receiving payments in no time. Not only in business, but digital currency is also used by people in making their transactions. They can buy things online and make instant payments. Not only aiding people to meet their business and personal requirements, digital currencies have also succeeded in reducing the burden of carrying hard cash. Before the use of digital currencies, people use to stand in long queues in banks and make their transactions. This involved a huge wastage of time and also had a fear of your money being stolen. Digital currency is also known as digital money or cybercash.
Cryptocurrency is a digital currency. It uses cryptography for its security. Cryptographies have a very robust security system. It is based on blockchain technology. However, Cryptocurrency is not used in all countries because of its regulation. In many countries, it is even banned. Blockchain is a type of database that is used for recording all the transactions. The blockchain enables data to be stored in the form of blocks. In simple words, the blockchain is a record-keeping technology. There are many types of the blockchain. Such as Bitcoin, Litecoin, Ripple, etc. The cryptocurrency was invented by Satoshi Nakamoto. The main uses of Cryptocurrency are to make the transactions at a very low cost. It enables the user to store their wealth in an alternative medium. Companies can make non-cash transactions using Cryptocurrency.
People usually get confused between digital currency and cryptography. The main purpose of both the currencies is to store the hard money in a digital format. But the main difference lies in its creation, its uses, and its encryption. Digital currencies can be traded through any bank or any financial institutions. Therefore, it is under the direct regulation of the government. On the other hand, Cryptocurrency is not traded through any established financial institutions. Therefore, it is unregulated.
However, there is a difference between digital currency and Cryptocurrency. It is underlined as under:
These were the above-mentioned differences between a digital currency and a Cryptocurrency
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