Digital, Virtual & Crypto Currency
Digital currency (i.e. digital money, electronic money, electronic currency, cyber cash, etc.) is a type of currency that is available only in digital or electronic form, and not in physical form. They can be either regulated or unregulated, and are only accessible with computers or mobile phones. They are often the cheapest method to trade currencies, because they don’t require any intermediary. Digital currencies are also stable and are traded with the markets. Most often, the term digital currency is used to refer to currency that is issued by a bank in digital form.
Virtual currency is also only available in electronic form and is a type of unregulated digital currency. They are accessible, stored and used via designated software, mobile or computer applications, or through dedicated digital wallets. Virtual currency transactions occur over the internet through secure and dedicated networks. Virtual currency is held within the blockchain network that is controlled by its developer(s), the founding organization, or the defined network protocol, and not by a centralized banking authority. Therefore, it experiences dramatic price movements since the only real force behind trading is consumer sentiment.
Cryptocurrency is a type of digital or virtual currency that uses cryptography to encrypt / secure and verify transactions as well as to manage and control the creation of new currency units. This makes cryptocurrency nearly impossible to counterfeit or even double-spend. Cryptocurrency has a decentralized network structure based on blockchain technology. It is generally not issued by any central authority, and this makes it theoretically immune to government control, interference or manipulation. However, this also makes cryptocurrency have a highly volatile exchange rate and also easily used for illegal activities.
What is Cryptocurrency? A Simple Explanation
The Daily 2 – Digital Currency VS Crypto Currency
Blockchain and Crypto: Past, Present, and Future | Douglas Pepe | TEDxRanneySchool