Topic: Difference between Digital currency and cryptocurrencies - page 2. (Read 632 times)
I think digital currency is like paper money but in digital form and its still controlled by central bank. Different with cryptocurrency, its decentalized system and no one can control the supply and no one can change transaction data.
Really didnt know there was a difference because I felt they all share a common identity why is the fact that they are not fiat
I don't think there are differences between digital currency and cryptocurrency. Cryptocurrency can be described as an advanced model of digital currency. Just like physical fiat, digital currency is an electronic form of physical fiat which is used for online transactions. Cryptocurrency is described as a digital currency.
good explanation, I think today there are still many people who equate crypto with digital currency, because they see that:
1. Crypto and digital currency do not have a real form.
2. both have a nominal digital form.
3. transaction processing using the protocol.
So, we must explain in more detail to the public about crypto and digital currency, so that they do not have the wrong statement.
1. Crypto and digital currency do not have a real form.
2. both have a nominal digital form.
3. transaction processing using the protocol.
So, we must explain in more detail to the public about crypto and digital currency, so that they do not have the wrong statement.
The difference lies in its use, for digital currency is used on the internet while for cryptocurrency is an asset that is used as a medium of exchange
The main difference between them is centralization. Since digital currency is introduced to the market earlier, it went futher, and it is more complicated and advanced in order to meet market needs. It is more stable, aceeptep etc., but situation will change because people’s need constantly change. People are looking for new opportunities.
in my opinion, digital money is money like virtual money, but the money is not genuine if crypto money is like this, BTC and I think digital money has been allowed by the government but crypto money hasn't
In my opinion, it is just a different way of calling digital currency. I always hope for a strong recovery of the market in the near future, when the altcoin is stable.
Bitcoin blockchain is also not private.
For me, number one is now cryptocurrency, but I hope that the speed of transaction processing will increase, and the commission will be less than 0.1 percent.
For me, number one is now cryptocurrency, but I hope that the speed of transaction processing will increase, and the commission will be less than 0.1 percent.
Digital currency is just money you use online. Cryptocurrency is a type digital money, the safest one. Digital currency is centralized and controlled by a certain group of people. Crypto has a decentralized nature and no one can control it. Cryptocurrency is transparent, all the transactions that have ever been made are visible for everyone involved.
That is not really the definition I will give.
Not all digital currencies are centralized, cryptos aren't. All currencies could be transparent too, it's just then there is no use to have a transparent system. Would you be ok to have all your bank history visible to everyone in your street?
Cryptocurrencies are digital currencies using a cryptographic protocol.
Digital currency is just money you use online. Cryptocurrency is a type digital money, the safest one. Digital currency is centralized and controlled by a certain group of people. Crypto has a decentralized nature and no one can control it. Cryptocurrency is transparent, all the transactions that have ever been made are visible for everyone involved.
The first and important difference between Digital currency and cryptocurrency are their nature. Digital currency are centralize in nature which means they are under control if any kind of authority or government, where as cryptocurrency are decentralised in nature which means they are not under control of any kind of authority or goverment. Digital currency are less volatile where as cryptocurrency are highly volatile. Digital currency are accepted by many country in comparison to crypto currency. Cryptocurrency are tax free currency where digital currency are not tax free currency.
As far as I know cryptocurrency is a type of digital currency that is not regulated and is build through blockchain systems
Enough points has been highlighted by you and they are very helpful.One thing that needs to highlight is Cryptocurrencies has more profit percentage and Digital currency has less profit percentage 
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I wish your friend understands all that definition and explanations,because for me after that story telling ,i may wall out and forget about investing in cryptocurrency lol
But you have made it clear,every details that you tackle are enough for newbie to understand and realizes how advantageous this crypto profiteering than other online offers
But you have made it clear,every details that you tackle are enough for newbie to understand and realizes how advantageous this crypto profiteering than other online offers
cryptocurrency is one of digital currency, as we know that digital currency is the currency that don't have any physical form, like bitcoin, paypal, altcoin and anything. as you said that if they dont work in cryptocurrencies all of the digital currency is not decentralized. and its not safer than bitcoin
I was introducing cryptocurency to one of my friend and after so many explanation, he asked me the difference between the two currencies, so below was my answer to him
These forms of currencies are inherently similar. However, their similarity devolves into distinct features when they are examined more critically. Here are some of the major differences between digital currency and cryptocurrency.
1. Decentralization vs. centralization:
Banking system, a majority of digital currencies are regulated by regulatory bodies like the Federal Reserve or other designated government parastatals. This means that transactions are constantly monitored, and their value determined by these regulatory bodies.
On the other hand, cryptocurrencies are fully decentralized. This means that no institution is set aside to regulate them. The rules are set by its community. As a result, the viability of a cryptocurrency is highly dependent on the strength its community can garner.
2. Privacy:
Privacy in this sense refers to the ability to conceal the information of the account owner.
With digital currencies, this is practically impossible. To open a digital account, you need to upload your photo and fill in your personal details, to make use of services like PayPal, you have to fill in your information like name and address. Hence, you can easily be tracked.
On the other hand, you don’t necessarily need to disclose any of your personal information when opening a wallet for cryptocurrency trading. In fact, coins like Dash are available to provide full anonymity, and this is one of the reasons why cryptocurrencies were widely used on the dark web.
3. Transparency:
The framework of digital currencies only allows approved entities to get access to the transaction information. Information regarding transactions of which you’re not directly connected is withheld from you.
On the other hand, cryptocurrency transactions are made available to the public domain. Even though the people behind the transactions are unknown, this way, you can personally monitor how much money is in the system.
4. Legal framework:
Most digital currencies are backed by a recognized central authority. Having legal support from government and financial institution establishes their general usage and acceptance.
On the other hand, cryptocurrencies aren’t backed by any form of a recognized body. As a consequence, they’re not yet fully recognized as a legal tender worldwide.
5. Dominance:
Due to their recognized backing, digital currencies are accepted all over the world. Carrying out transactions with digital currency isn’t restricted by geographic borders, race or even belief systems.
Cryptocurrencies, on the other hand, are loners. They are only accepted by a small group of institutions and compared to other centralized digital coins, their popularity doesn’t measure. Although analysts pose that this will soon change and government regulations will be more favorable towards cryptocurrency.
6. Transaction interference:
Since transactions are monitored by central authorities when using digital currency, they can easily flag transactions suspected to be suspicious or even freeze an account temporarily on the request of the owner. This makes transaction reversible.
On the other hand, once a transaction is completed with cryptocurrency, it is automatically added to the Blockchain and is forever irreversible.
7. Value fluctuation:
For digital currencies, its value is determined and regulated by financial institutions. This makes the currency relatively stable.
Cryptocurrencies, on the other hand, are unregulated. This makes them highly volatile and susceptible to slight behavioral changes in its community.
Hope this will help many newbie here. Cause i myself still learning.
digital money and crypto money I think it's the same, which makes it different only in mentioning it, and I prefer to call it crypto compared to digital money. These forms of currencies are inherently similar. However, their similarity devolves into distinct features when they are examined more critically. Here are some of the major differences between digital currency and cryptocurrency.
1. Decentralization vs. centralization:
Banking system, a majority of digital currencies are regulated by regulatory bodies like the Federal Reserve or other designated government parastatals. This means that transactions are constantly monitored, and their value determined by these regulatory bodies.
On the other hand, cryptocurrencies are fully decentralized. This means that no institution is set aside to regulate them. The rules are set by its community. As a result, the viability of a cryptocurrency is highly dependent on the strength its community can garner.
2. Privacy:
Privacy in this sense refers to the ability to conceal the information of the account owner.
With digital currencies, this is practically impossible. To open a digital account, you need to upload your photo and fill in your personal details, to make use of services like PayPal, you have to fill in your information like name and address. Hence, you can easily be tracked.
On the other hand, you don’t necessarily need to disclose any of your personal information when opening a wallet for cryptocurrency trading. In fact, coins like Dash are available to provide full anonymity, and this is one of the reasons why cryptocurrencies were widely used on the dark web.
3. Transparency:
The framework of digital currencies only allows approved entities to get access to the transaction information. Information regarding transactions of which you’re not directly connected is withheld from you.
On the other hand, cryptocurrency transactions are made available to the public domain. Even though the people behind the transactions are unknown, this way, you can personally monitor how much money is in the system.
4. Legal framework:
Most digital currencies are backed by a recognized central authority. Having legal support from government and financial institution establishes their general usage and acceptance.
On the other hand, cryptocurrencies aren’t backed by any form of a recognized body. As a consequence, they’re not yet fully recognized as a legal tender worldwide.
5. Dominance:
Due to their recognized backing, digital currencies are accepted all over the world. Carrying out transactions with digital currency isn’t restricted by geographic borders, race or even belief systems.
Cryptocurrencies, on the other hand, are loners. They are only accepted by a small group of institutions and compared to other centralized digital coins, their popularity doesn’t measure. Although analysts pose that this will soon change and government regulations will be more favorable towards cryptocurrency.
6. Transaction interference:
Since transactions are monitored by central authorities when using digital currency, they can easily flag transactions suspected to be suspicious or even freeze an account temporarily on the request of the owner. This makes transaction reversible.
On the other hand, once a transaction is completed with cryptocurrency, it is automatically added to the Blockchain and is forever irreversible.
7. Value fluctuation:
For digital currencies, its value is determined and regulated by financial institutions. This makes the currency relatively stable.
Cryptocurrencies, on the other hand, are unregulated. This makes them highly volatile and susceptible to slight behavioral changes in its community.
Hope this will help many newbie here. Cause i myself still learning.
In fact, the concept of crypto money involves something bigger than the concept of digital money. All crypto coins are also digital. But not all digital coins are crypto money. Crypto money has different features. Just as your friend said in the first message.
I do not think that is different, just by the way I call it, but I like the name Cryptocurrencies. Hope the market will recover in 2019
Thanks for the article, everything is explained in great detail. I often come across a similar question. Now I will send people here to read.
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