Difference between Digital currency and cryptocurrencies

[bright4mech]

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.

[iqlimasyadiqa]

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.

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.

[qiwoman2]

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.

[petrcoin]

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.

[dablatair]

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.

[Rituvohra01]

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.

[ict]

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.

[Thirdspace]

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

[mcneLubB]

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.

[mmo_online_1981]

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

[semes]

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.

[kiemponxs]

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.

[vonnyaries]

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

[carlisle1]

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

[hitrawal91]

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  .

[ronnis.gomes]

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

[stiffbud]

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.

[crypteris]

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.

[LeGaulois]

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.

[bellamente]

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.