Digital Currency- WHAT SHOULD YOU KNOW ABOUT

Bitcoin, Ethereum, Cardano, Binance coin, DOGE coin, and many other similar names may be found in your ears today. Someone is calling them a scam, not a legal one, an act of fraud, and moreover, the parents of the new generation of investors are legally suspicious of them.

So what Digital Currency is !!

Basically they are called Cryptocurrency or you could call them "The Future of Money", there are a lot of rumors about the true meaning of Digital Currency but don't worry you will find them clarified below-

Digital currency is a type of currency that can only be obtained digitally or electronically. Also called digital money, electronic money, or cybercash.

Other important points:-

1. Digital currencies are coins that are only available on computers or mobile phones because they exist only electronically.

2. All cryptocurrencies are considered digital currencies, but not all digital currencies can be considered cryptocurrencies.

3. Most cryptocurrencies are internationally distributed(decentralized) networks based on Blockchain Technology - a distributed book that is forced into a separate computer network.

4. Standard digital currencies do not require consultants and are usually the cheapest way to trade money as it has now been adopted by many MNCs.

5. Digital currencies can be categorized as centralized and decentralized. Fiat Currency, available in physical form, is a centralized production and distribution system by a major bank(central) and government agencies. Eminent cryptocurrencies, such as Bitcoin and Ethereum, are examples of decentralized digital currency systems.

Deep down in the title:-

Digital currencies have no physical features and are only available in digital form. In contrast to virtual currency such as notes and cheap coins, transactions should take place between individuals with direct physical attributes while digital currency transactions are performed on computers and smartphones using e-wallets or other crypto exchanges.

Digital currencies have the same benefits as real currency types as they can be used to buy goods and pay for services. They also have limited use among certain online communities, such as gaming sites, gambling sites, or social networks.

Also, Digital Currencies enable fast transactions that can be done seamlessly across borders. That means one can invest or work across borders without going into financial transactions and a few procedures.

Types of Digital Currency-

1. Cryptocurrencies

2. Virtual currencies

3. Central Bank Digital Currencies (CBDCs)

Benefits:

1. Transfer time and transaction time are very fast.
2. There is no need for physical products and cannot be contaminated.
3. Transaction costs are cheaper.

Disadvantages:

1. More chances of getting HACKED.
2. The value is variable.
3. Storage and infrastructure problems.