INSUBCONTINENT EXCLUSIVE:
Cryptocurrency runs on blockchain technology that records and stores data on all transactionsThe world is slowly shifting from traditional
modes of the transaction to digital wallets which hold both, fiat currency as well as cryptocurrency
With many options to pick from, it is important to know the difference between the various forms of currency
Digital currency is nothing but the electronic form of fiat money that is issued by governments
Cryptocurrency, meanwhile, is a non-physical currency that is issued by a private system
It is decentralised, not regulated by any governing authority and runs on blockchain technology
NFTs or Non-Fungible Tokens are digital assets that denote real-world items like music, art, memes, fashion, etc
From collectible sports cards to memes, NFTs can represent any entity or be used to monetize any skill. Digital CurrencyTo put it simply,
digital currency is the electronic form of real-world money
A person can buy products, conduct transactions using digital currency in any part of the world even though digital currency does not have
any real-world physical presence
While digital currency does not require encryption, users will need to use unique and secure passwords to protect their digital wallets from
theft or hacking. CryptocurrencyCryptocurrency runs on blockchain technology that records and stores data on all transactions made in a
public ledger that can be accessible to anyone
It is a decentralised system, that is independent of any centralised regulation
All transactions are recorded in a decentralised ledger that is available to everyone to see, nullifying the need for a central authority
Unlike digital currency, it is protected by strong encryption. Non-Fungible TokensNFTs are one-of-a-kind digital assets that represent
NFTs are not interchangeable and are different from cryptocurrencies which are fungible tokens
This means that NFTs cannot be traded the way cryptocurrencies are
NFTs are managed by a digital ledger and all transactions are done online. How Are They Different From Each Other?The primary difference
between the three is that unlike cryptocurrency and digital currency, NFTs cannot be traded for each other as they are unique
representations of real-world assets
Cryptocurrencies and digital currencies can be traded for each other as there will be no loss to their value.Digital currencies are
centralised and are regulated by authorities like banks and governments that keep a track of the transactions that take place
Cryptocurrency and NFTs are decentralised and are regulated by the communities that run them. Unlike Cryptocurrency and NFTs that are
accessible through a digital public ledger making all transactions transparent, digital currencies are private and information based on
transactions and all money transfers are confidential.
