Difference Between Cryptocurrency and Digital Currency
The main differences between cryptocurrency and digital currency lies in their technology and purpose:
1. Technology: Digital currencies can use different technologies but cryptocurrencies are based only on blockchain technology.
2. Production: Cryptocurrency units are “mined” while digital currencies units are normally generated by the issuing authority.
3. Regulation: Digital currencies are often subject to more government regulation than cryptocurrencies.
4. Volatility: Cryptos are more volatile than digital currencies making them attractive for speculative investment but challenging for everyday use.
5. Trading: Cryptos are often traded on decentralized exchanges while digital currencies use centralized platforms.
6. Security: Blockchain-based cryptocurrencies offer tight security and transparency compared to some digital currencies.