Difference Between Digital Currency and Cryptocurrency

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Difference Between Digital Currency and
Cryptocurrency
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What is Digital Currency and Cryptocurrency?

• Digital currency and cryptocurrency are two terms
  that describe slightly different things. Digital
  currency refers to any form of currency you can
  use in your digital wallet.

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What is Digital Currency and Cryptocurrency?

• Cryptocurrency, meanwhile, refers specifically to
  digital currencies held as a record on blockchain
  databases. These two terms arent interchangeable
  when it comes to taxes.

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What is Digital Currency and Cryptocurrency?

• If you hold traditional money in digital form,
  its taxed as income. But if you hold
  cryptocurrency or other purely digital assets,
  the IRS considers them property and taxes them
  accordingly.

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What is Digital Currency and Cryptocurrency?

• But there are many digital currency advantages
  and disadvantages too. If you are wondering - is
  crypto a digital currency? You will find the
  details right here.

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About Digital Currency

• A digital currency, also known as a
  cryptocurrency (a form of electronic money), is
  an asset using cryptography to secure its
  creation and usage. Cryptography means the
  transactional exchange of ownership of the coin
  and is achieved through mathematical
  problem-solving that uses public and private keys

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About Digital Currency

• Digital currency has, for the most part, been
  brought about by the emergence of cryptocurrency
  a type of electronic money. Cryptocurrency is
  an unregulated form of currency, which can be
  moved around through the use of blockchain
  technology

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About Digital Currency

• Digital currency can be used to pay for goods and
  services, exchange for other currencies, or
  received as payment for work done.

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About Digital Currency

• Digital currency is an electronic representation
  of value that can be used to buy goods and
  services, as well as exchange for other
  currencies. While many different types of
  currency exist (fiat, digital, and others), they
  are all accepted in transactions because they
  have value to the user.

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About Digital Currency

• There are many advantages of digital currency.
  Digital money is not backed or supported by a
  central bank or government it is not a physical
  commodity like gold or silver, rather it is a
  virtual asset that is stored online.

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About Cryptocurrency

• Cryptocurrency is a form of digital money that is
  created and stored electronically using software
  and computer systems. It can be used to exchange
  goods and services. Bitcoin and other
  cryptocurrencies have been gaining in popularity
  recently and are now highly speculative
  investments.

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About Cryptocurrency

• If you invest in Cryptocurrencies, they may get
  lost, stolen, or hacked. There are also no
  government or regulatory protections if you do
  not take additional steps to protect your
  currency. A cryptocurrency is considered secure,
  reliable, and trustworthy as it is based on
  cryptography. It is pure decentralization, at its
  most glorious!

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Major Differences Between Digital Currencies
Cryptocurrencies

• Though cryptocurrencies and digital currencies
  are both considered a form of money, there are
  some key differences between the two. Digital
  currencies are centralized, meaning that
  transactions occur inside the network in a
  central location, like a bank.

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Major Differences Between Digital Currencies
Cryptocurrencies

• Cryptocurrencies, on the other hand, are mostly
  decentralized, and regulations within the network
  are governed by majority consent. Some
  cryptocurrencies can be centralized and run by
  the founding organization instead.

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Major Differences Between Digital Currencies
Cryptocurrencies

• The main difference between digital currencies
  and cryptocurrencies is that the former are
  issued by centralized entities, such as banks or
  e-commerce stores, while the latter has no
  centralized issuer. Cryptocurrencies rely on
  community involvement instead and are developed
  on top of a blockchain.

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Major Differences Between Digital Currencies
Cryptocurrencies

• Anyone can verify the circulating supply and the
  complete transaction history for a particular
  cryptocurrency, but one cannot say the same about
  digital currencies because they are kept secret.
  The price of cryptocurrencies is highly volatile,
  making holding them a form of speculative
  investment.

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Thank You!

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  support_at_desertcart.com

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