knowledge What is the difference between digital currency and cryptocurrency?

[Emma William 2399]

What is the difference between digital currency and cryptocurrency?

 

I think that many beginners and newcomers do not know that there is a difference between digital currency and cryptocurrency .. so I saw that it is my duty to explain the difference between the two.

The difference between digital currencies and cryptocurrencies is what we will explain to you in this topic, because the encrypted economy is something new to the world, just as cryptocurrencies, many confuse digital currencies and cryptocurrencies, so in this article we will try to know the difference between cryptocurrencies and digital currencies and What are the main differences between the two, cryptocurrencies and digital currencies?

 

Digital Currency

 

Digital currencies are the money used on the Internet. It is digital money in the form of numbers. It has no materially equivalent in the real world. But digital currencies have all the characteristics of traditional money. Just as local money, you can get it, transfer it or exchange it for other currencies.

You can use it to pay for goods and services, such as filling out phone and Internet accounts, buying online, paying for bills ... digital currencies have no geographical or political boundaries. Transactions may be sent from anywhere to any point in the world. Digital accounts and wallets can be considered bank deposits.

Crypto Currency
 

Cryptocurrencies or Cryptocurrencies are a variety of digital currencies but are encrypted with their own system. Cryptocurrencies or Cryptocurrencies are an asset that is used as a medium of exchange. It is considered reliable because it is based on a complex cryptographic system based on cryptography.

One of the primary goals of cryptography is to make communications safe and secure. It creates and analyzes algorithms and protocols that allow data to be encrypted so that no information, how it was, is changed, or allowed to be viewed by third parties. Cryptography is a combination of a large number of different sciences, with mathematics being the primary science in cryptography. Mathematics is responsible for the reliability of the encoded algorithms and protocols.

What are the main differences between the two, cryptocurrencies and digital currencies?
 

• Architecture: Digital currencies are centralized. There is a group of people and computers that regulate the state of transactions in the network. As for currencies, cryptocurrencies or cryptocurrencies are decentralized, based on distributed (computers) systems that manage transactions.
   
• Anonymity: Cryptocurrencies require user identification. He will need to upload his personal photo, some documents issued by the public authorities, proof of address ... and many other documents and procedures that prove the identity of the person. Either purchase, investment, or any other cryptocurrency operations do not need or require any of that needed by digital currencies. However, the cryptocurrencies or Cryptocurrencies are not 100% anonymous. Although the wallets' addresses do not contain any confidential information such as name, residential address, etc.
  
  
  What other differences do you know between digital and cryptocurrencies?

[Omar98 916]

Actually, cryptocurrencies are being encrypted and decrypted while the asset of transferring money between tow parts. Thanks for the technology of the private and public key that is being used for example in the bitcoin blockchain. the difference between digital currencies and cryptocurrencies is obviously clear when we think in the thing deeply. 

[Dorjoy12 8962]

 The most important difference you already mentioned up in the topic that digital money is centralized which get controlled by every country’s Central Bank and on decentralized currency mean crypto currency has no control on people or on a organizations..  By the way, it would be more better if you mentioned first digital currency which is egold and first crypto currency which is bitcoin..  But a common difference is people love digital currency more than crypto currency😊                                

[Emma William 2399]

6 minutes ago, Omar98 said:

Thanks for the technology of the private and public key

Yes, the security and encryption system that exists in the cryptocurrency project is the most important characteristic of this project, and this thing is considered a key factor for the success of the project
 

 

1 minute ago, Dorjoy12 said:

The most important difference you already mentioned up in the topic that digital money is centralized which get controlled by every country’s Central Bank and on decentralized currency mean crypto currency has no control on people or on a organizations.

Yes, and this is true because digital currencies are linked to the central bank of each country!
While in the cryptocurrency project there is no central bank!
That is, there is no specific authority managing the cryptocurrency order!

[Artugul78 91]

Being a digital currency that you can use from anywhere. Digital currency is not seen.  But you can be used to purchase different products online etc.  In cryptocurrency on the other hand a security is a complete currency.  It can be earned from crypto.  Basically the difference between the two currencies is in the transaction....

[Dorjoy12 8962]

18 minutes ago, Emma William said:

While in the cryptocurrency project there is no central bank!
That is, there is no specific authority managing the cryptocurrency order!

 But a thing you need to do now that usa trying to regulate bitcoin price though i think it wont be possible so far... If usa become successful in this way then there will be a trouble in crypto world and People will be forced to leave crypto world..   By the way, crypto currency is for new generation so its our duty to make it more popular..                

[MuhammadSh 3067]

It's all about understanding the differences between the centralized and decentralized currencies.. this issue should be known well for everyone who interested in this crypto world in my opinion.. but unfortunately , there are still many people think that the cryptocurrencies are the same with the digital currencies and it isn't right and it shows us the ignorance of these people about this crypto world and how it works! these decentralized cryptocurrencies projects affect directly on the whole international financial world system and we don't even know what would happen with the current economic world system in the near future.. so let's wait and see what can these decentralized projects do!

[bino 3576]

Very informative. That's why cryptocurrency is better than digital currency. When it comes on holding a money, Cryptocurrency is better because its decentralized, you won't get any tax from it, unlike the digital currency. The downside of Cryptocurrency is when you get hacked because of your lack of knowledge in cryptocurrency, no one can help you since all users are anonymous. Unlike in digital currency, all information are filled up, and can be track by the government or the bank.

[SuperCrypto 7193]

A lot of people think digital currencies are the same as cryptocurrencies. However, anyone working in the crypto market should know the difference between them. Digital currencies are centralized, while cryptocurrencies are decentralized, based on distributed computer systems that manage transactions.

[Emma William 2399]

49 minutes ago, MuhammadSh said:

It's all about understanding the differences between the centralized and decentralized currencies.. this issue should be known well for everyone who interested in this crypto world in my opinion.. but unfortunately , there are still many people think that the cryptocurrencies are the same with the digital currencies and it isn't right and it shows us the ignorance of these people about this crypto world and how it works! these decentralized cryptocurrencies projects affect directly on the whole international financial world system and we don't even know what would happen with the current economic world system in the near future.. so let's wait and see what can these decentralized projects do!

Yes, this is true and for me I was one of those people who thought that the digital currency is the same as the cryptocurrency!
But today, by chance, I read some information about digital currency and found out that it is not like the cryptocurrency and is completely different from it!
So I liked to publish this topic to show the difference!
I think the reason we don't know these things is because we haven't read the basics of cryptocurrencies properly

[kalshamaa35 100]

I think that many members wasnt know about that .. many bignners think that Cryptocurrency is nearly to Digital currencies !

This is because people dont read about these things !

I think that digital currency is used to buy thing online ! like when you want to buy video games or books

in another hand Cryptocurrencies are using to make your money being bigger and to make your capital bigger !

with Cryptocurrencies we earn alot of profits.

. 

[Cryptonas 1550]

9 hours ago, Emma William said:

What is the difference between digital currency and cryptocurrency?

 

I think that many beginners and newcomers do not know that there is a difference between digital currency and cryptocurrency .. so I saw that it is my duty to explain the difference between the two.

The difference between digital currencies and cryptocurrencies is what we will explain to you in this topic, because the encrypted economy is something new to the world, just as cryptocurrencies, many confuse digital currencies and cryptocurrencies, so in this article we will try to know the difference between cryptocurrencies and digital currencies and What are the main differences between the two, cryptocurrencies and digital currencies?

 

Digital Currency

 

Digital currencies are the money used on the Internet. It is digital money in the form of numbers. It has no materially equivalent in the real world. But digital currencies have all the characteristics of traditional money. Just as local money, you can get it, transfer it or exchange it for other currencies.

You can use it to pay for goods and services, such as filling out phone and Internet accounts, buying online, paying for bills ... digital currencies have no geographical or political boundaries. Transactions may be sent from anywhere to any point in the world. Digital accounts and wallets can be considered bank deposits.

Crypto Currency
 

Cryptocurrencies or Cryptocurrencies are a variety of digital currencies but are encrypted with their own system. Cryptocurrencies or Cryptocurrencies are an asset that is used as a medium of exchange. It is considered reliable because it is based on a complex cryptographic system based on cryptography.

One of the primary goals of cryptography is to make communications safe and secure. It creates and analyzes algorithms and protocols that allow data to be encrypted so that no information, how it was, is changed, or allowed to be viewed by third parties. Cryptography is a combination of a large number of different sciences, with mathematics being the primary science in cryptography. Mathematics is responsible for the reliability of the encoded algorithms and protocols.

What are the main differences between the two, cryptocurrencies and digital currencies?
 

• Architecture: Digital currencies are centralized. There is a group of people and computers that regulate the state of transactions in the network. As for currencies, cryptocurrencies or cryptocurrencies are decentralized, based on distributed (computers) systems that manage transactions.
   
• Anonymity: Cryptocurrencies require user identification. He will need to upload his personal photo, some documents issued by the public authorities, proof of address ... and many other documents and procedures that prove the identity of the person. Either purchase, investment, or any other cryptocurrency operations do not need or require any of that needed by digital currencies. However, the cryptocurrencies or Cryptocurrencies are not 100% anonymous. Although the wallets' addresses do not contain any confidential information such as name, residential address, etc.
  
  
  What other differences do you know between digital and cryptocurrencies?

Thank you sir for this wonderful lecture, may God continue to increase you in knowledge. Let me try and summarize it and see if am correct.

Digital currencies are money used on online for payment and they can also be convert into our traditional money, at point what I understood is the digital currencies are non physical money that we spend.

While cryptocurrency  is also a digital currency but it has it own body or system unlike others...

[Raqeebzy 6456]

Cryptocurrency and digital currency are being used interchangeably but there are lots of difference between them. We can say all cryptocurrency are digital currency but not all digital currency can be regarded as crypto.

The blockchain technology network is the main difference between them. Centralisation, anonymity and transparency of blockchain in cryptocurrency unlike digital currency system.

[Hussain musaddaq 348]

Digital crruncy is an online crruncy that we used on internet in the form of digit for many purposes.such as doller .on the other hand cryptocurrency is the form or type of digital crruncy that we will use in future for international trading.such as bitcoin.

[Captin 0]

I think that the difference between the digital blockage and the encrypted currency is that the digital currency belongs to an institution or country. As for the encrypted currency, it is a decentralized currency with no real guarantor

[iloveyobit 6599]

you can call cryptocurrency by digital because they are already on the web , but you cant call digital currency a crypto currency because they are centralized while crypto is decentralized ..

 

 

[Emma William 2399]

7 minutes ago, Captin said:

I think that the difference between the digital blockage and the encrypted currency is that the digital currency belongs to an institution or country. As for the encrypted currency, it is a decentralized currency with no real guarantor

Yes, this is relatively true ..
But it is also possible, through digital currencies, to use online product purchases!
Also, through cryptocurrencies, we can buy products over the Internet, so I consider that this is a point of similarity, not a difference!
That is, both currencies have a global scale, not a local one

[Izeal 4404]

Digital currency are the currency which are regulated by their own government and they can be used only in their country but cryptocurrencies are the decentralized coin and no one is regulating the coin they go on on their demand and supply and they have their own value and they can be use to trade from one country to other if cryptocurrencies are accepted in both countries.

[leakydonney 1402]

Personally I can say that cryptocurrency is a subset of a digital currency although there are some key differences between the two of them, in case of authority; digital currencies are normally managed by  central authority that can deal with any problems or issues such as, the central body can freeze or cancel transactions on the request of the participant or the authorities while Cryptocurrencies are regulated by their respective communities only.

[decemberends 1881]

Thats right and things on digital currency are more usable in many more ways compared in the crpytocurrency as we all know crypto is used more in a business way and while the digital one is more usable in everyday life things example when buying stuff from the market something like that.

[Emma William 2399]

Just now, decemberends said:

Thats right and things on digital currency are more usable in many more ways compared in the crpytocurrency as we all know crypto is used more in a business way and while the digital one is more usable in everyday life things example when buying stuff from the market something like that.

This is what I am trying to communicate through this topic ... Many people still have the idea that cryptocurrencies are like digital currencies through which we can buy and sell items online .. Yes, it is true that we can do this, but this is not the main goal of cryptocurrencies!
With cryptocurrencies, we can make huge profits because their price changes constantly

[sp19a1ma035 43]

Digital currency is a type of currency which is controlled and adjusted by a government or central bank but cryptocurrency.Digit currency is a visible currency.  Cryptocurrency is also a digital currency but it is not controlled by anyone either government or Central bank.both have no physical existence.

[Ummah97531 615]

Yes, basically!  Of course I think I would answer my friend as one of the people studying information technology.  And I also think that digital currency is an unencrypted currency and computers or mobiles can easily understand it.  Because it is written in computer language and it understands the binary, eight and hexadecimal systems and the computer understands the language of eLocks and units, while encrypting the currency encrypted with its name so that it cannot be stolen

[Razan alikac 1899]

Yes, many confuse digital currencies with cryptocurrencies, and think of them as one
 Although cryptocurrencies are a type of digital currency, there are some basic differences between the two.  In terms of structure, transparency, transaction processing and transfers, and legal aspects

[almamunany 69]

computer can easily understand of digital currency language cause of its make same as computer language and its unencrypted currency. basically cryptocurrency is not centralized that means is not under any company. so i prefer digital currency.