Digital currency is a form of currency which is available only in digital or electronic form, and not in physical form. It is also know as digital money, electronic money, electronic currency, or cyber cash.
- Digital currencies are currencies that are only accessible with computers or mobile phones and only exist in electronic form.
- Since digital currencies require no intermediary, they are often the cheapest method to trade currencies in market.
- All cryptocurrencies are digital currencies, but not all digital currencies are cryptocurrency.
- Digital currencies are stable and are traded in the markets, whereas cryptocurrencies are traded via consumer sentiment and psychological triggers in price movement.
Understanding of Digital Currency or Electronic money:
digital currencies and Cryptocurrency are intangible and can only be owned and transacted by using computers or electronic wallets connected to the Internet or the designated networks. In contrast, physical currencies, like minted coins and banknotes, are tangible and transactions are possible only by their holders who have their physical ownership.
Digital currencies have all intrinsic properties like physical currencies, and they allow for instantaneous transactions that can be seamlessly executed for making payments across borders when connected to supported devices and networks.
Digital currencies offer numerous advantages. As payments in digital currencies are made directly between the transacting parties without the need of any intermediaries, the transactions are usually instantaneous and low cost. This fares better compared to traditional payment methods that involve banks or clearing houses. Digital currency based electronic transactions also bring in the necessary record keeping and transparency in dealings.
Difference among Virtual Currency, digital currencies and Cryptocurrency:
|Digital Currency||Virtual Currency||Crypto Currency|
|Regulated or unregulated currencies that is available only in a digital or electronic form.||Virtual currency is a type of unregulated digital currency that is not issued or controlled by a central bank.||A virtual currency that uses cryptography to secure and verify transactions as well as to manage and control the creation of new currency units.|
|Digital currencies are stored in and transacted through designated software, applications, and networks in digital form.||Virtual currency can be either centralized or decentralized. A decentralized virtual currency does not have a central administrator.||The decentralization of virtual currency relies on blockchain networks, which is cryptography based. The cryptography based virtual currency is known as cryptocurrency.|
|Digital currency is a broad concept, referring to all the monetary assets that are in digital form.||Virtual currency is a subset of digital currency, and cryptocurrency is a subset of virtual currency. XRP is an example of centralized virtual currency||Many decentralized currencies are based on blockchain networks such as Bitcoin, Litecoin, and Ethereum.|
What Is Cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology, a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
A cryptocurrency is another form of digital currency which uses cryptography to secure and verify transactions and to manage and control the creation of new currency units. Bitcoin and ethereum are the most popular cryptocurrencies.
Top 10 cryptocurrency exchanges
Cryptocurrency exchanges are online services that work similarly with a stock broker in share market, through specific tools that can make you buy and sell digital currencies (such as BTC, LTC, Ethereum, etc.) with ease on cryptocurrency trading platform. You’ll know a good exchange if you’re able to do all of that with convenience, all with low fees and strong security features.
When it comes to choosing the right crypto exchange platform for you, there seldom is that ‘one size fits all’ model. You’re going to have specific needs you want met with your e-coins, and the appropriate platform will deliver that for you. below is the list of top 10 cryptocurrency exchanges, you can choose any one one of them.
Top 10 cryptocurrencies to buy
There are many crypto exchange platforms in the market. In such a situation, it is quite easy to buy and sell cryptocurrencies like Bitcoin and Dogecoin in the country. The popular platforms present in the country include WazirX, Zebpay, Coinswitch Kuber and CoinDCX GO. Investors can also. Investors can also buy other cryptocurrencies such as Bitcoin, Dogecoin and Ethereum from international platforms such as Coinbase and Binance.
There are thousands of cryptocurrencies, most with very little value and unclear potential. Many advisors recommend investors stick to Bitcoin, Ethereum and XRP.
- Litecoin LTC
- Tron (TRX)
- USDT Coin
- Wazirx Token (WRX)
- Bitcoin Cash
Legal Status of Cryptocurrencies in India :
Is cryptocurrency trading legal in india ?, And if it is then how much should you invest in it? There are two questions coming in mind and that many Indians are trying to get answer of it.
This is not an easy question to answer but to be honest. The Indian government still is not very sure about how to deal with this new phenomenon. But here are few facts. In 2018, RBI came out strongly and kind of banned these in India. Then in 2020, the Supreme Court of India reversed RBI’s ban of 2018. This was followed by the Indian banks curtailing transactions with crypto-exchanges as, in their view, they are governed by the RBI (2018) and not directly by the Supreme Court (2020). But a few days back, RBI said that the banks cannot quote its 2018 ban to its customers as it was overruled by the Supreme Court.
And if this flip-flop of different government bodies wasn’t enough, the RBI governor said a few days back that the central bank still has “major concerns around cryptocurrencies, which [they] have conveyed to the government. And, about investors, it is for each investor to do his/her due diligence and take a very careful and prudent call.”
There is a lot of confusion about the legal status of cryptocurrencies in India. That’s why because the government proposed a bill earlier this year, which would have provided for a ban on all cryptocurrencies, including Bitcoin and Dogecoin. However, no further development took place in it later. A recent report also claimed that the government has dropped the idea of banning cryptocurrencies completely.
Cryptocurrency is not illegal in India. But, they are not regulated. That is why, you can make buy and sell transactions to buy crypto. You can even keep it as an investment, but there is no governing body to take care or protect it.
WazirX Founder and CEO Nischal Shetty said in an exclusive interview
“There is a lot of confusion about this in India right now. Because, there is no regulation for this in the country. When people hear about it, they get scared. In fact, a lot of things on the Internet are unregulated. These include the names of Ola and Uber. Even e-commerce is unregulated. The most important thing for investors is that if not regulated, the chances of fraud and scam increase.”