imo, digital currency is a digitized form of a currency system
and digital currency may represent and have physical form in real world
crypto currency is a more specific form of digital currency that based on cryptography
crypto currency only exist virtually (but has a real world value) and doesn't represent any physical form currency
Topic: Difference between Digital currency and cryptocurrencies - page 3. (Read 632 times)
In my opinion. digital money is conventional money whose use has used technology methods to transact but is still controlled by a third party or financial system centered on one system. while crypto currency is a digital currency that has used technology to transact, but the financial system is managed by us so that we can control all transaction data or financial data on our own.
Cryptocurrency is a form of digital currency. It is subset of digital currency. It is used as decentralized ledger. It means that the transaction made by it is not supervised and regulate by any authority.
Hello,
For me the basic difference is that Digital currency is centralized and controlled by governmants/institutions as Crypto currency is decentralized and free for everybody.
another aspect is that the first one are more stble and the other ones could be more volatile.
For me the basic difference is that Digital currency is centralized and controlled by governmants/institutions as Crypto currency is decentralized and free for everybody.
another aspect is that the first one are more stble and the other ones could be more volatile.
If you are meaning fiat but with bank transfer like digiatal currency they are basic fiat just online.
Cryptocurrencies are digital currencies actually. Not fiat with bank transfer.
Cryptocurrencies are digital currencies actually. Not fiat with bank transfer.
I think now both digital currencies and cryptocurrencies of a decentralized nature will start to compliment each other and also stabilize the markets. Look at the fact now that so many stable coins, apart from Tether, are now entering the market and governments and central banks want to mimmick this idea by creating their own so-called stable coins or digital versions of their Fiat currencies for the masses. I do see the difference of course between decentralized currencies and centralized digital currencies and we must know the difference either way.
I've always considered crypto as a form of digital currency. I'd say keep them under one roof. In fact this might even cause more confusion from a newbie's perspective.
True, cryptocurrency is kind of digital currency. There are a lot of things that considered as digital currency even it not related with fiat, Like mobile pulse, In game currency, etc. If crypto i can't describe it really detail.
They are different between digital currency and crypto currency, the difference between them are digital currency has a fixed amount that can be called at anytime and withdraw, but crypto currency is a currency that is placed on trading platform which keeps fluctuating up and down in price value, which has no fixed amount or price.
I've always considered crypto as a form of digital currency. I'd say keep them under one roof. In fact this might even cause more confusion from a newbie's perspective.
True, cryptocurrency is kind of digital currency. There are a lot of things that considered as digital currency even it not related with fiat, Like mobile pulse, In game currency, etc. If crypto i can't describe it really detail. 
I think digital currencies is include all thing that we use as payment in digital transaction, even it is fiat, or anything else that we can use as payment, it can be called digital currency. But crypto is i can't explain about crypto, but like bitcoin and others of it.
Yes it is, Digital currency and cryptocurrency is both useful on digital media however the main difference is that Digital currency can be a coverted fiat like Dollars, won stored at online wallet for example Paypal and Cryptocurrency is a currency in a form of cryptography like BITCOIN and ETHEREUM. However, we both coined it as digital currency often since we are using it on digital world.
The only thing that i know about the difference between digital currency and cryptocurrencies is that digital currency is run or the government is holding it they provide stuff for it to grow and for the people to use it while cryptocrrencies are moving on freely, government doesn't have power to control the crypto only the who's people using it.
I've always considered crypto as a form of digital currency. I'd say keep them under one roof. In fact this might even cause more confusion from a newbie's perspective.
I see your point of view, I can identify the digital currency and cryptocurrencies, and I can apply them more in the future.
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.
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.
Thank you for this information. It's useful for me newbie like me.
Cryptocurrency is a digital currency that work as a form of exchange that uses cryptography to verift transactions and control the creation of new unit of the token, While A digital currency is a form of currency that is available only in digital or electronic form, and not in physical form, please not that digital currency might not be a cryptocurrency base on it form of generation or development.
We're close to currency just being called currency. And then there are variations with how those currencies are constructed and made available. A currency becomes digital when it can be exchanged via the internet (for lack of a more sophisticated term). Crypocurrency means the identity of the participants in an exchange and the security of each transaction is protected by cryptographic means.
"digital" doesn't have to need internet, it needs to be in any form but physical and it requires computers. for example it can be your phone. but since these methods of payment are usually not only in one place so they need internet to connect to the central database.
as for cryptocurrency it is not about "identity of the participants" but the transactions itself. your identity is not protected, your transactions are.
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.
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.
I didn't know that they can be different, but I know that somehow that they are the same and would try to change our financial systems in the future.
I think digital currencies is include all thing that we use as payment in digital transaction, even it is fiat, or anything else that we can use as payment, it can be called digital currency. But crypto is i can't explain about crypto, but like bitcoin and others of it.
We're close to currency just being called currency. And then there are variations with how those currencies are constructed and made available. A currency becomes digital when it can be exchanged via the internet (for lack of a more sophisticated term). Crypocurrency means the identity of the participants in an exchange and the security of each transaction is protected by cryptographic means.
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.
wrong. 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.
first of all this is not a difference between the two categories.
secondly being a cryptocurrency doesn't mean it is also "decentralized". as an example you can take a look at so many centralized altcoins. they also are cryptocurrencies but they are fully centralized. examples are XRP, USDT, ETH, ...
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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.
not necessarily.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.
again a cryptocurrency may not even provide you with any kind of privacy. it just happens that bitcoin and a lot of the altcoins do it. otherwise there can be coins that don't give you any kind of privacy.
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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.
i wouldn't say this is a difference either because you are generalizing again. for example in case of anon coins such as Monero, they offer enough obfuscation that makes it impossible to track, monitor,... 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.
Quote
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.
this point depends on whether the coin has immutability or not. and again the centralization issue arises. for example in bitcoin when your transaction is included in a block, it will be practically irreversible because of the design and the fact that reversing it needs an attack and costs a lot.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.
but a centralized coin without immutability can easily reverse any coin they want, and even spend them.
basically i would say the main difference (if not the only one) is that cryptocurrency is a sub category of digital currencies that is based on cryptography and the blockchain technology.
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