Do you think digital currency and cryptocurrency are the same thing? Then this post for you because we explain differences between these similar (at first sight) concepts.
🔸 Definition Digital Currency is the digital format of fiat currency that you carry around in your wallet or withdraw from an ATM. Cryptocurrency is a store of value that is secured by encryption.
🔸 Regulation Digital currency is regulated by a central authority. Cryptocurrency is decentralized and unregulated.
🔸 Stability and legality Digital currency is usually stable, and currencies are globally accepted. Cryptocurrency rates are highly volatile, and digital coins are not widely accepted yet.
🔸 Transparency Digital currency transactions are only known to the banking authorities along with the sender and receiver. Cryptocurrency transactions are in the public domain thanks to the decentralized ledger that records all the blockchain details.
🔸 Security Digital currency needs strong passwords to protect digital wallets, banking apps, credit, debit cards. Cryptocurrencies are secured by encryption.