Digital currency is available only in digital or electronic form. This form of currency is not physical like the currency in the form of paper notes. Other terms like digital money, electronic money, electronic currency, or cybercash are also used for digital currency.
In order to use digital currency, a computer and electronic wallet should be connected to the internet or any designated network. Unlike physical currencies, bank notes or minted coins, digital currencies are intangible and can be transacted over the internet connection.
WHAT IS DIGITAL CURRENCY?
Digital currencies can also be used like physical currency to purchase goods and services. Like physical currency, digital currency also has intrinsic value and transactions can be done in the same way as the physical currency. These transactions are possible across the borders as well through supported devices and networks. The digital networking has a huge role in this field.
In the modern era, digital currency provides various advantages when it comes to payments through digital means. Payments in digital currencies are made directly between the transacting parties. The process does not involve any intermediaries and the transactions are usually done instantly. The fares can be better compared to traditional payment which involved extra payments for transactions. Digital currency based electronic transactions also provides necessary record keeping for our own benefit.