What is Digital Currency? Everything you need to know

The Ultimate Guide to Digital Currency and How It Could Change Your Life!

The term digital currency refers to a type of currency that is electronically created and stored. It does not have physical form and it is not printed by a central bank. It is produced by specialized companies, called cryptocurrency companies and the currencies are also known as cryptocurrencies. The use of digital currencies is not limited to the internet and can be used in the real world too. 

Digital currency can be used to purchase goods or services, usually online. The transactions are then recorded in the digital ledger known as the block chain. Digital currencies are typically decentralized, meaning they don’t have any one central authority such as a government backing them up.

Types of Digital Currencies

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto & released as open-source software in 2009. The system is (peer to peer), and transactions take between user directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.

The price of bitcoin has gone through cycles of appreciation and depreciation referred to by some as bubbles and busts. In 2013, prices started at $13.30 per bitcoin, growing to $1,242 by 1 January 2017. The most popular use case for digital currencies today is to buy goods on the internet without having to pay transaction fees or taxes at brick-and-mortar.

There are many different types of digital currencies such as Bitcoin, Litecoin, Ethereum and more recently Ripple has entered the market with their XRP token. Bitcoin is not backed by any government or central bank, but instead relies on the power of the internet and cryptography to maintain its value.

How to Buy Bitcoin & Other Cryptocurrencies

One can use Bitcoin by downloading a wallet on their computer or mobile device, then they can create an address which is like a bank account number for themselves. They can then buy Bitcoins from other people using different methods such as exchanging goods or services, accepting them as payment for goods or services, purchasing them from an exchange service with another type of currency such as dollars and so on. The easiest way to buy bitcoins is with a credit card through Coinbase. You can also buy bitcoins using PayPal or Skrill account and exchange them on local bitcoins or other exchanges like Binance or Bitfinex.

Future of Bitcoin and Crypto

Physical currency is a type of currency that can be touched, felt and seen. It is made up of coins and paper bills. Whereas, digital currency is the future of currency. It is an electronic form of money, it does not exist in physical form which is more convenient, secure and efficient. Digital currencies are virtual as well as intangible. They are stored in computers and mobile devices. The use of digital currencies are not limited to online transactions. Digital currencies can also be used in physical stores as an alternative to traditional forms of payment. Digital currencies are stored in digital wallets that keep track of the balance and can transfer money from one wallet to another.

Physical currency can be lost or stolen, and it takes a lot of time to count and transport it, which makes it expensive to transport as well. Digital currency does not have any physical form, so it can't be lost or stolen. It's also much easier to manage than physical currency because you can transfer money instantly from one account to another with a few clicks of your mouse. Digital currencies are also easier to carry around with you, which makes them better for making purchases online or in stores where you don't need to carry around cash or cards with you. Digital currencies are stored in digital wallets, which are designed to protect your money from theft or fraud. Digital wallets can take many forms, such as mobile apps or computer programs. They are also different from physical wallets because they store your information electronically rather than physically. Some other benefits of using digital currencies may include lower transaction fees, faster processing time, anonymity, and global accessibility. However, there are some risks associated with using digital currencies such as volatility in price, hacking risk and lack of government oversight.