The globe is experiencing a radical change in terms of conventional wallets to digital wallets. A digital wallet contains digital money and, it can also contain cryptocurrencies that have blockchain technology. Many of them think that both digital currencies are the same but, the actual truth is there are many differences among digital money and cryptocurrency. It is important for all the people who are interested in crypto trading to known the differences. Let us look into some of the differences.
- Digital money is the electronic form of notes and coins which can be stored in the wallet. If any time you need hard cash in your hand. Then, you can anytime convert the digital currency into cash by withdrawing money from the ATM. The encrypted form of digital currency is known as cryptocurrency. There are many different forms of cryptocurrencies and, they are known with different names given by their manufactures. Some of them are bitcoin, ethereum, etc. All the cryptocurrencies are, created using blockchain technology which helps for faster transactions also provides safety.
- The main difference between both wallets is that the regular digital currency is not encrypted. And one can open an account with the bank without much security. So there is always a threat that hackers can hack your money. Whereas the cryptocurrency is encrypted. And, to open the account, you need to open it with the cyber security system.
- The value of the digital currency is nearly stable, so you will be able to do the transaction without any research. But when it comes to cryptocurrency the market is volatile so, before the transaction the individual needs to do intense research. There is a chance that the value can change when you are completing a transaction.
- If we talk about transparency there is some information that is shared in the regular digital currency. Both the receiver and sender will receive information about the bank, the time the transaction was done, and the date. In Cryptocurrency the transparency is the most important feature no one will know the transaction details as they are in an encrypted format. Only the owner of the cryptocurrency will be able to check the details which are saved in the blockchain.
- The digital currency is managed by the central government of each country. The RBI controls the complete services they will have access to, to check all the transactions. The cryptocurrencies are decentralized which means there is no third person to check on the transactions.
Hope the above-mentioned information has made you understand the difference between both the type of digital currencies.