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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 currency (advanced cash or electronic cash or electronic money) is a sort of money accessible just in advanced shape, not in physical, (for example, banknotes and coins). Precedents incorporate virtual monetary forms and cryptographic forms of money or even national bank issued "computerized base cash". Computerized monetary standards, in the mean time, are reclaimed for physical products and ventures constantly. You can arrange items by means of PayPal

A Crypto-currencies forms like BTC, Eth are new, however change method of repayment with no clearing house, national banks and center individual or operators remain in the middle of the repayment party like national banks and banks. Accordingly, it's no additional expense of middle of the road party, quick, simple (once you see how to work the wallet paying little mind to hard wallet or delicate wallet). Its straight managing between 2 party, utilizing Crypto-currencies forms as medium of repayment for their merchandise and enterprises. Estimation of the Crypto-currencies standards is moved rely upon free market activity.

Cryptocurrency for me is a form of digital currency which is decentralized and provides anonymity to its holders. Hence it is tagged 'crypto'.
They are all forms of digital assets.

The first and biggest difference between Digital currency and cryptocurrency is the nature of currency. Digital currency are centralize in nature which means they are under control of government where cryptocurrency are decentralised in nature which means they are not under control of any kind of authority or government. Secondly digital currency are regulated currency so they are more stable. Where as cryptocurrency are not regulated so they are highly volatile in nature. Digital currency are worldwide accepted currency where as crypto currency are accepted in limited number of country.

The difference between the two currencies is this:
Digital currency is has a centralized structure  while cryptocurrency has a decentralized structure  .

Digital currency is relatively stable while cryptocurrency is not.....as a matter of fact,  cryptocurrency is highly volatile.

While government have powers and control over digital currency it can not be said of cryptocurrency.

Etc

Thanks for outlining all differences between the digital currency and cryptocurrencies. I hope that we will be able to use both of them because these are new trends and this will allow to enjoy many pros

The both types of currency is revolving round decentralized and centralized, currency, you have nailed enough points to keep us calm..well done.

It is nice questions because I was ever in trap defining the term of Digital currency and Crypto currency. There are many analogies miss perception to define and differ between Both currency. Basically, Crypto currency can be defined as digital currency as the existence is on the internet or in form of digital, but not all digital money is Crypto currency. The term of Digital currency is a term for all digital money in the internet. What makes different between digital money and crypto currency is that Crypto currency is created with cryptography technology decentralized which use Blockchain technology.
In simple that all transactions in Crypto will be on every computer which uses it.

There is also this one term that is been asked me including these two which is the virtual currency, they said that it is like that Virtual Currency and Crytpo Currency are the same but it is not, really. Virtual Currency is a currency with no physical state but it is still different with crypto currencies. The examples I can give is the game money or game credits we are seeing to a lot of game platforms these days.

wrong.
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, ...

not necessarily.
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.

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,...

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.
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.

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.

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.

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.

"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.

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.

Thank you for this information. It's useful for me newbie like me.

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.

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.

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.

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.

Crypto is a part of digital currency. I think there are lots of explanations and parts of digital currencies. We don't need to worry about explaining it because the most important thing is now digital currencies and including crypto are in a very good development process. We only need to maintain and we will reach the era of digitalization that is so good in the future.

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.

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.

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.

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.

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.

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

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.

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

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.

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.

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 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

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  ;D ;D .

As far as I know cryptocurrency is a type of digital currency that is not regulated and is build through blockchain systems

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.

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.

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.

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.

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

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.

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

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.

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.

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 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.

That is what crypto currency goal all transaction must do for individual not necessarily using for third party unlike digital currency which is classified as form of fiat money is 100% centralized and regulated by government that's only a big different between both subject but for quick transaction decentralized is much better and efficient than centralized.

A digital currency is one that is related to the internet(online activities)/computers as opposed to physical currencies,in the sense that you cannot touch nor feel them, you only make use of them/carry out transactions with them over the internet

While cryptocurrency is an example of a digital currency,in its case it's decentralized and works on a particular platform called the blockchain technology

There are many digital currencies and cryptocurrency is just one of them

digital currency does not allow you to be sure that your funds will not be blocked at any time

Yes, for me privacy is the most difference between digital currency and cryptocurrency.
Although bitcoin is not anonymous, you can use other coins such as Monero to become anonymous.
Digital currency cannot do that. Only cryptocurrency can make you using your money anonymously.

Digital currency is money in digital form and only on the internet. Digital currency does not have any physical characteristics in the real world, but has all the behavior of traditional money. You can transfer, buy, and sell it for currencies. Digital currencies have no geographical or political restrictions, can be sent to and from anywhere. Whereas Cryptocurrency is an asset that is used as a medium of exchange. This currency uses cryptography and how to make it is considered safe. The system used will create and analyze algorithms and protocols. This is to prevent any information that is changed or interrupted when connected by third parties. Cryptography is a mixture of several different sciences based on mathematical calculations. Cryptocurrency uses blockchain and ledgers that are certainly decentralized.

The first thing to mention is the difference between them. While digital broadcasting is a centralized system controlled by the government, cryptocurrency is a decentralized, non-centralized or government-controlled system.

Market share of digital currencies is huge and it has a common use in today's financial system. For crypto currencies, it is very difficult to defeat digital currencies in a short term and persuade investors to use cryptocurrencies instead of digital currencies.

a very good and easy to understand explanation, but to be simpler is cryptocurrency is part of the digital currency, but digital currency is not necessarily cryptocurrency
for simple needs, I really like using cryptocurrency to transact, for example to extend the domain, to pay for advertising, to subscribe to news, etc.
but if for the purpose of buying and selling, I still use bank transfers, which are more official and security is layered

the digital currency is usually issued by the state and can be used in that country and if used in other countries we must first convert it into the currency of the destination country, this will not occur in crypto currency because the krypto currency applies throughout the country and does not need to be exchanged into any country's currency if we will make payments in different countries.

it is right and true what you say in your opinion, with what you convey can make investors understand and understand what you are saying and people do not misinterpret

And more importantly, Digital currency is easier to lose than Cryptocurrencies , so I recommend using bitcoin as the safest cryptocurrencies  I've known until now. And when you invest bitcoin scratches you will see that no one will manage your money like Digital currency. Just my chose is cryptocurrencies and I should you also choose Bitcoin  ;D.

I think digital currency is just something without the use of internet. Digital currency is again what a form by which we can make series of transactions with or without internet.

Why cryptocurrency is a form of an online digital coins, traded in all forms of exchanges

Digital currency is not the same as cryptocurrency but that doesn't mean they are different in terms of transactions since it is still needed to be transacted online, which means it needs internet.

if you will be talking about offline transactions, it will be fiats since they can be transacted without the use of internet or any connections, it is also obvious since it is the most common way of paying someone.


if you will be talking about making a series of transactions, cryptocurrencies can be done with that too, the only difference is that digital currencies are centralized since they are the digital type of fiats while cryptocurrencies are decentralized.

if you don't know there are some ways to transact Bitcoin and maybe other cryptocurrencies offline such as using the wallet Ethereum. Also, cryptocurrencies are not just used as an investment or an asset since it is also used as a payment method of a lot of platforms and most of them, we don't know yet since they are limited to some countries.

Digital currency doesn't require proof of work.

Always best with digital currencies to just ask "is it bitcoin?"

If the answer is no, try to trade it for bitcoin

Crypto = encrypted, build on blockchain
digital currency = no encryption, not on blockchain.

Dude, all the digital currencies that you find like ATMs, credit cards, debit cards, etc. use the internet to connect with each other, like when an ATM machine fails to connect to the internet, of course you won't be able to take your money out or make transactions. digital currency is make by fiat or government, while cryptocurrency is included in the virtual currency

Digital currency is FIAT but used for payment and exchange through support app from significant developers. Cryptocurrency is a currency developed on the Blockchain platform, and it listed on the exchanges, where they will be traded and create value changes every hour.

bitcoin and other crypto are called digital, because they have digital form values, but not digital.

but digital currency is not crypto, crypto systems have a decentralized concept. but digital has a broad understanding.

Your way of explaining what virtual money is and cryptocurrency is quite amazing, a not-long-winded explanation. And from both of these money I prefer cryptocurrency because we can hold onto what we have.

Digital currency is that which is having fixed amount and can be called out anytime and withdraw.
But the cryptocurrency is a currency which keeps on fluctuating in price value and there is no fixed amount.