Cryptocurrency vs. Digital Currency

If you think digital currency and cryptocurrency are the same, you’re not alone. However, this is not true. cryptocurrency and digital currency have major differences. Let’s discuss them below:


Cryptocurrency is a decentralized currency that has no physical form. At the same time, digital currency is the digital form of existing notes and coins. Let’s say you have a $10 bill, and you transfer it into your bank. Further, you transfer $10 from your bank account to PayPal. Now, the wallet will hold the value of $10; let’s say there’s no fee. So, now that $10 hard cash has taken the form of a digital currency. You can use it to buy products worth $10 wherever you want.

However, in the case of cryptocurrency, there’s no solid form. You need to convert fiat currency into popular crypto like Bitcoin, and then you can use it to buy or sell other cryptocurrencies.


When it comes to security, there’s not much in action in the case of digital currencies. Your digital currency wallet is prone to all sorts of hacks. Also, it’s not encrypted.

Now, cryptocurrency is encrypted. Also, it works based on blockchain- a digital ledger. As a result, cryptocurrency is more secure and less prone to hacks. Although it’s not immune to hacks completely, still, in the case of crypto, better security is in place.

Present Rate

The current rate of digital currencies almost always remains stable. And even if it changes, it’s quite easy to manage, even globally. However, because of high volatility, the value or price of the cryptocurrency on par with other currencies keeps on changing quite frequently. This is what makes investing in crypto quite risky.

Transaction fees

Have you ever transferred money from your account to a wallet? Or have you transferred money digitally? If so, you would know how high the transaction fee is. However, when it comes to cryptocurrency, the transaction fee is minimal.

Whether you want to send or receive money, you can do that without paying much transaction fee. Also, location is not a barrier when it comes to cryptocurrency.


Digital currency, as you may know, is controlled by banks. And the banks take decent care of privacy. The sender and receiver can see the amount, name, date of transaction, and transaction number. And this may be enough for the hacker to look into your account.

However, with cryptocurrency, there’s another level of privacy. Apart from the dealers, no one can see what amount, location, individuals, etc., were involved in the transaction.