Digital Money: What Is It And What You Should Know
In this modern era, there is not only money that was produced by each government, but there is also digital money. If you are into business and keep it up-to-date, you must have heard about digital money, or some people call it digital currency. What is digital money and what does it do? Don’t worry if you are new into this topic, cause we are going to discuss it in this article.
What is Digital Money?
Digital money is any form of money or payment that only exists in electronic form. Digital currency does not exist in a physical form like a bill, check, or coin. It is tracked and transferred via computerized electrical codes. These type of payments causes a reduction of the need for actual currency.
People usually use and transfer digital currencies using smartphones, credit card and online cryptocurrencies exchanges. In some circumstances, it can even be changed into actual cash by using an ATM.
What’s The Purposes of Digital Money?
It has actually been invented since the invention of internet. But people just didn’t really trust and use it back then. However, as people become more comfortable with technology, and the technology itself becomes more safe and secure, more people are now willing to utilize digital currencies.
Digital money is different with cash, it’s not physically exist like cash or gold. So you mostly only can use it for transaction that occurs in digital platforms. But in some countries, they do accept store payment with digital currencies in certain circumstances.
Examples of Digital Money
You might have understand what is digital money and how it can be used, now let’s talk about forms of digital currencies out there. There are several examples of it, so check this out!
1. Bitcoin
Bitcoin (BTC) is a cryptocurrency that acts as money and a form of payment outside the control of third-party involvement in financial transactions.
2. Ethereum
Ethereum is pretty similar with bitcoin. People exchanges it through online marketplaces and keept it in different kinds of cryptocurrency wallets.
3. Ripple
Ripple doesn’t use blockchain like bitcoin. It uses a distributed consensus ledger using a network of validating servers and crypto tokens called XRP. XRP transactions are both cheaper and faster than Bitcoin transactions. Their website even mentions that Ripple is less costly and more scalable.
4. Litecoin
Litecoin is an open-source global payment network that is not controlled by a central authority. The thing that differ litecoin with bitcoin is, litecoin is ‘lite version of Bitcoin’.
How To Buy It?
Most digital currencies (including cryptocurrencies and stablecoins) are available for purchase on the world’s crypto exchanges. But not every cryptocurrencies are available in crypto exchanges, that’s why you have to research it beforehand. Cryptocurrencies are highly volatile investments. It’s better to consult with a financial advisor before really spending your their on these or any other asset classes. But there are several ways to buy digital currencies depends on what type of digital money is it.
Do you Own Any Digital Money?
As what you have known from the information above, have you own any of it? If you plan to buy it, make sure you have known about pros and cons of digital money. Also don’t forget to consider any potential risks from it. We recommed you to keep follow the update of them cause its value keeps fluctuating.
