Digital currencies are a type of money that only exists virtually and is not physically present. They come in two varieties, centralized and decentralized, and are also referred to as electronic currency. Because it is used for online trading, digital currency can only be discovered in electronic form. They are renowned for enabling safe and transparent digital payments. Although they are becoming more and more popular, they are still far from being a trusted replacement for actual currency. Digital currencies like BNB, Ethereum, Bitcoin, and Litecoin are among the most well-known.
Digital Money (Cryptocurrency)
Cash maintained in online bank accounts is a type of digital money that is already used in everyday life. You can send or receive money from others using this method. Additionally, it is appropriate for online purchases.
In that, it can serve as a unit of account and a medium for regular transactions and making payments, digital money is identical to its physical counterpart in both concept and use. But it’s not withdrawable like fiat currency which is paper money. For instance, when you take money out of an ATM, it takes on a physical form, thus the dollars in your online bank account are not digital currency. Digital money has no physical form but can exchange between them like we can exchange the dollar for euro. Digital money differs from physical money in that it streamlines the transactional process.
For instance, compared to traditional money, the technological underpinnings of digital money can facilitate and expedite monetary transactions across borders. The mechanism for central banks to enact monetary policy is also made simpler by this type of money. Some types of digital currency employ cryptography to make their transactions censorship- and tamper-resistant, making it impossible for governments or private organizations to regulate them.
How to exchange my digital currency for cash?
One of the easiest ways to cash out your digital currency is to use a centralized exchange such as Binance or Nexo. Coinbase has an easy-to-use “buy/sell” button and you can choose which cryptocurrency you want to sell and the amount.
To withdraw money, you must first sell your cryptocurrency for cash. After that, you can transfer the money to your bank account and you can withdraw your money from the ATM. The same process work if you want to purchase cryptocurrency you have to deposit money into a crypto exchange and then buy the digital money of your choice. Put in your mind that these exchange fee some are low and some do not.
Here is an exchange that charges no fee while purchasing bitcoin:
Example of digital currency
There are a lot of categories of cryptocurrency and every day a new cryptocurrency is being created for example the decentralized exchange, metaverse, Ethereum ecosystem, NFT, Fans token, Play to earn, Polygon ecosystem, Binance ecosystem, and Polkadot ecosystem. There are over 100 categories you can check Coinmarketcap for more. Here is a list of examples of cryptocurrency: