Difference between Digital currency and cryptocurrencies

[hdtqisg]

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.

[Amevalentine]

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

[bitcoincitr]

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.

[aray80]

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

[kamBlanV]

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.

[kvipcn]

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.

[Payme21]

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

[jcarlo]

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.

[resty]

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.

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.

[Hivalley]

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

[goodluck0319]

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

[H1N1]

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.

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.

[Teh Kotak]

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.

[VivianJacob]

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.

[virtfund]

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.

[bayu7adi]

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

[Cupomi]

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.

[LieTOme]

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.

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

[bdc2343]

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

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  .

[Olayinka225]

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