The topic of this review is an argument of Digital Currency vs Cryptocurrency, where many traders found it hard to even make an appropriate choice in all terms. Be that as it may, analysis into each one suggests that there really are some noticeable differences, as will be shown in this review.
What is Digital Currency?
This is best described as currency systems that only exist in digital form, having characteristics that resemble, and sometimes even match those of physical conventional currencies. They do not have any physical representation outside of computer systems, but they hold significant value on the online market.
To such ends, they may even be used in the basic in and out transactional systems, where they are designed to facilitate in all common exchanges, in whatever denomination they are set in. Such transaction systems have capabilities that transcend modern-day border systems, where the relevant transactions can be conducted from wherever in the world to wherever else.
What is Cryptocurrency?
These are asset-based token systems that run off of blockchain technology. Like digital currencies, crypto-only exists online, where they operate on a series of protocols and algorithms. The blockchain and the automatic ledger entries are made safe by way of cryptography, where all transactions are duplicated and transmitted to all devices on that particular weekend.
During and even after these procedures are run, the coin data is continuously operated one, encoded, and decoded up until such a time when the data is retrieved. This way of operation also renders Cryptocurrencies untraceable, where the user IPs are basically invisible to any, and all threats.
But what about virtual currency?
Technically speaking, the so-called Virtual Currencies are classified under digital currencies. Their ongoing functionality is not regulated by a form of authority. Rather, they are specially designed to be controlled by their developers, only made available to the user of that specific virtual community.
Basically, the monetary values that are attached to the virtual tokens are not provided by any government or support authority, and neither do they fall under any one specific conventional currency system. They are circulated around to be used as means of payment, where they are capable of running the basic deposit, withdrawal, and storage operations.
Banks all over the world are aware of the presence of virtual currencies, yet they do not engage in trades of any kind. The currencies are sometimes referred to simply as virtual cash.
What is the difference between digital currency and cryptocurrency?
It is quite clear that the two currency systems contrast in many ways, where the cryptocurrency scene basically came and compromised the current integrity of the digital systems, offering some never before seen services onto the financial market. That said, the following are recognized as the major differences that separate the Digital Currency systems from the Cryptocurrency systems:
Anonymous Usage – crypto tokens work on the blockchain. This technology operates in such a way that renders it safe from unnecessarily prying eyes. This means that the IP address attached to each device on the network becomes impossible to track down, to a certain point of course.
High-Speed Transactions – one of the main reasons why cryptocurrencies are favored is their lightning-fast operations, where transactions typically reflect in an instant of being requested. This happens because crypto transactions do not require the same time-wasting tests and evaluations the way that most digital currencies do.
Decentralization – this term is as simple as that, where such networks operate completely on their own, with no ties to any central processing hubs or servers. They operate through each and every user who is connected to the network, initiating the appropriate transactions as they go.
There are many examples of each, as many accustomed traders may already be aware of. The following is a shortlist of the most notable digital currencies, followed directly by a list of the most prominent high-end cryptocurrencies:
- Yandex Money
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Litecoin (LTC)
- Dogecoin (DOGE)
- Ripple (XPR)
Digital Currency vs Cryptocurrency: Final Thoughts
Well, from this precise digital currency and cryptocurrency review, it can be deduced why the cryptocurrency scene is commonly referred to as the future of internet finances as a whole. It should be noted that quite a number of countries still ban the use of crypto, and traders from these countries are generally discouraged, quite strongly, from entering exchange platforms, lest they face criminal charges.
The issue of online currency is quite the topic, where more and more individuals gain an interest in such systems. The ongoing introduction of more altcoins does not help at all, and neither do the now consistent prize surges. On the other hand, digital currencies are much more convenient, in terms of simple conversions, and even readily accessible services.