What is digital currency

 What is digital currency

What is digital currency

In the beginning, we must start defining and understanding the digital currency in an easy and simple way, and the digital or encrypted currency is exactly like the digital form of cash. You can use it for example to pay your friends or co-workers for your share of a lunch or dinner bill at a restaurant, buy new clothes yourself to buy, or book flights and hotels for your summer vacation or even your weekend getaway. Given what a digital currency is, it can also be sent to friends and family members anywhere in the world. Just like PayPal transfers, bank transfers or electronic banks.

But is this your view of Bitcoin and cryptocurrencies? just a question

If you are not the first time you hear about the issue of digital currencies, you may think that it is a normal and centralized mechanism like the traditional financial system, but in fact the answer is no. Because the topic is not exactly like that. The topic is more than interesting.

And as we know, the traditional online payment gateways (electronic banks) are owned by institutions and companies. They keep your money on your behalf, and eventually. You just need to ask them to transfer it on your behalf whenever you want to spend it.

In cryptocurrencies, there are no governance and management organizations. You, me, our friends, our relatives, and thousands of people have been able to make private banks between us by running free programs. It means your computer is connected to other people's computers directly - without the need for any intermediary.

To use the digital currency, you do not need to register on a website with an email address and password. All you do is download or download a variety of applications on your smartphone, these applications are cryptocurrency wallets and remain open source and decentralized, you download the wallet on your device and then create the keywords for your wallet. These keywords must be registered in It is an external paper and you keep it in a safe place. It is recommended to make more copies because if these keywords are lost and forgotten, neither you nor anyone or any other entity can retrieve your wallet and your coin addresses again. Because there is simply no central authority that you can refer to to help you and retrieve these keywords in addition to the private keys for each public address inside the wallet. Then you can start sending or receiving coins within minutes.