Digital currency, as its name implies, is any form of money or currency that is available in a digital format. However, there are many different names that are also often associated with digital currency such as digital money, e-wallets, cyber currency, and whatnot. It functions in a lot of the same ways that your traditional physical banknotes and coins do. It’s just that its areas of application are more geared towards digital transactions and trade. In this article, we are going to go over what exactly digital currency is, what its pros and cons are, and where you can use digital currency in your own life.
What is Digital Currency?
Again, in so many ways, digital currency is practically just like the traditional money that you have in your wallet or in your bank. It just so happens that this money now exists in a digital form. This means that you can store, access, and transact with this money by making use of electronic devices such as phones and computers. You just have to make sure that you’re connected to the internet in order for you to be able to gain access to your digital account. Most modern commercial banks these days already offer digital services wherein they allow their customers online access to their financial accounts. Essentially, your savings account would also be able to function as digital currency.
However, more than just the commercial banks, there are also other specialized companies out there that offer dedicated e-wallet or digital currency services. One very popular example of a company that handles digital currency is PayPal. To put it simply, PayPal functions a lot like a personal wallet that exists online. You can link your PayPal to your savings account or even your credit cards. You can also load money onto your PayPal account and have it function as an actual digital wallet. From there, you can use PayPal for various different types of transactions, which we will talk about later.
Is Digital Currency the Same as Cryptocurrency?
Not necessarily. Digital currency is not technically the same as cryptocurrency, which is rapidly increasing in popularity these days. You may already have heard of various cryptocurrencies like Bitcoin and Ethereum. The reason that they aren’t technically the same is because cryptocurrency is not regulated by any kind of governing body. It’s a democratization of digital currency. So, in a way, cryptocurrency is a form of digital currency but in a slightly different variation.
Cryptocurrency runs on a technology called blockchain. Essentially, it’s a technological innovation that allows cryptocurrency users to monitor, regulate, and run their own transactions while they keep each other accountable. However, when you’re talking about more conventional forms of digital currency, a lot of the money that exists in these digital accounts is still subject to oversight and regulation from various governing bodies. For example, companies like PayPal and commercial banks that offer digital currency services still have to adhere to rules and standards that are imposed by their governments.
Where Can Digital Currency Be Applied?
Digital currencies can be applied in digital transactions. This can work both ways. You can function as either the seller or the buyer in this instance. If you have an online business, you can use digital currency to transact with customers and have them pay you through your digital accounts. You can also avail of goods and services with digital currency. This comes in particularly useful when you’re doing online shopping. It’s also useful if you’re a gambler who enjoys playing with real money online and prefer secure online transactions. One very popular trend in the online gambling market these days is live casino games where players have virtual video connections with actual dealers from licensed casinos while gaming. And the reason more and more live casino platforms and players opting transactions through digital currencies is because of amazing benefits its offers like faster deposits & withdrawals, more privacy & secrecy then bank cards or e wallets and less depositing & withdrawal fee both for the consumer and the casino which results in casino platforms offering more bonuses and promotions to the players instead of paying fees to payment processors.
What are the Pros and Cons of Digital Currency?
There are many different pros and cons to digital currency, but ultimately, it all boils down to two things: convenience and security. It’s a pro that digital currency makes transactions on the internet so much more convenient now. Transactions are instantaneous and you get to keep a record of your financial behavior. However, there’s still the risk of security. Sure, data privacy and security is a lot more sophisticated now than it has ever been. But with digital wallets, there’s still a chance that your security could be compromised.
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