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Nowadays we all are shifting from traditional wallets to digital wallets through digital transformation. A digital wallet holds digital currency as well as a cryptocurrency with advanced blockchain technology. Digital Currency or Digital Money is distinct from physical or coins. It allows instantaneous transactions and there is no border for transfer of ownership. The major benefit of digital transactions is the ease and the speed of making the transactions. Additionally, the users of digital payments enjoy more flexibility in making payments. Moreover, users need not worry about any risk involved. I know for beginners, it is difficult to differentiate between digital currency and cryptocurrency. Beginners first need to know What is digital currency and cryptocurrency? Let us begin.

What is digital currency?

It is the currency which is available only in digital or electronic form, and not in physical form. It is an open-source contactless transaction flow between two parties. Digital currency can definitely be used to purchase goods or services. Although there is a restriction on gaming sites, online gambling and social platforms.

Importance of digital currency

People who don’t like to use their debit or credit card can use digital money. The transaction is very easy and secure. As you are already aware that digital payments have endless benefits from ease to speed of transaction. Moreover, it can help the country to reduce the grey economy. As digital transactions of money will reduce money laundering. 

Top Cryptocurrencies to buy today in cryptocurrency market

What is cryptocurrency?

A cryptocurrency is a currency that can be used to buy goods and services. But it uses an online ledger with strong cryptography to secure online transactions. Typically, cryptocurrency allows you to buy goods and services, or trade them for profit. The cryptocurrency has different names with respective companies who launched it in the market— Bitcoin, Ethereum, Bitcoin, Ethereum, Dogecoin,, and many more. 

Importance of cryptocurrency

Cryptocurrency is really important. It helps you in a lot of things. It is used for fast transactions , digital, secure and worldwide, which in essence allow the maintenance of records without risk of data being pirated. Fraud is, actually, minimized. 

Difference between Digital currency v/s Cryptocurrency

As I earlier said, it is difficult to differentiate between both the currency. Here, I have listed the differences that will make you understand the real differences between them.

Current Rate

For instance, the value of digital currency is constant; it has no such noticeable change. So, for now, it is easy to deal for digital currency globally. Whereas, it is not the same for cryptocurrency, here the market is highly volatile. You can even expect a change while going for  a transaction. For instance, today the price of Bitcoin(BTC) is ₹ 26,33,938, it has changed ‑2.75% in only 24 hours. You can now think how volatile the cryptocurrency is. Additionally, It consists of potential risk without any extensive research before any investment or heavy transaction between two companies. 

Transaction fee

You will be surprised to know that digital currency requires a hefty amount of money for transactions. That means whenever you pay through your digital wallet you have to pay an extra amount of money. But in the case of cryptocurrency, there is no system of transaction fee in dealing. Because blockchain technology helps to reduce the expense as well as no extra commission for the third party agents. So, cryptocurrency is very useful for investors to deal with heavy transactions involving valuable assets.


For digital currency, centralized authority is the Reserve Banks. It controls the entire banking system of the respective countries. Moreover, banks have the authority to closely monitor the transaction flow for everyone whether it is for a digital wallet or a physical wallet. In the case of cryptocurrency, it is a decentralized system where there is no presence of a third party to have authority over the investors.


It is considered as the major and the primary difference between digital currency and cryptocurrency. The digital currency is not at all encrypted on the other hand, cryptocurrency is highly encrypted. Additionally the major difference is that for digital currency you have to open an account. The account is without any security. At any time your bank account can get hacked and you may lose all the existing cash. But in cryptocurrency, you need to open an account in a forum with a cybersecurity system to protect the Bitcoins and Dogecoins from severe cyberattack.

Digital currency v/s Cryptocurrency: which is better?

Cryptocurrency is most useful in terms of how much “real” (ie government backed) currency it gets you. If you couldn’t liquidate cryptocurrency, few people would buy it. There is still very little you can buy with cryptocurrency compared to digital currency. It’s much less intuitive to use than digital currency. It’s just generally inferior at being a currency.

There are a few advantages cryptocurrencies have. It is easier, cheaper, and faster to move them across borders than digital currencies, especially to or between countries with less popular currencies. You have more agency in handling cryptocurrencies than you do digital currencies, for instance. But for average everyday use, digital.

Some of the important cryptocurrencies

  1. Bitcoin
  2. Ethereum (ETH)
  3. Litecoin (LTC)
  4. Cardano (ADA)
  5.  Polkadot (DOT)
  6. Bitcoin Cash (BCH)
  7. Stellar (XLM)
  8. Chainlink
  9. Binance Coin (BNB)
  10. Tether (USDT)
  11. Monero (XMR)

Final note

We all know that today’s world is all dependent on digitization. All in all, digital currency is a digital form of money that you cannot touch but can use it for several things. However, in the case of cryptocurrency, bitcoins are still illegal in some countries but it is expected that it will be legal in the coming years. Additionally, there are numerous advantages and types of digital currency and cryptocurrency, bitcoins, virtual currency are all parts of currency.

Also read:

Understanding Cryptocurrencies Market, Risks of trading (Complete Guide)

Report Says Facebook Is Working to Launch a Cryptocurrency for WhatsApp

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