The new craze among youth is digital coins. but you need to know more before adopting this fad Digital currencies have started gaining ground as the most convenient mode of payment these days. Ever since the digital crypto currency Bitcoin was introduced in 2009, consumers, vendors and investors have shown great interest in it. However, you need to know about the benefits and pitfalls of the digital currency before you use them. If you are a newbie in the exciting world of very real yet non-touchable money, here is everything that you need to know about it. What is Digital Money? Imagine a nice little bundle of cash that exists only in the virtual world i.e. as an algorithmic equation. Digital currency is such money which acts as a medium of exchange online as well as in the real world. The important thing to note here is that there is a difference between virtual and digital currency. To put it simply, virtual money exists in the virtual world and works in the virtual world only, whereas the digital money exists in the virtual world but works in the real world too. When you use in-game money while playing those online games to buy stuff and upgrade, what you are using is virtual money. On the other hand, if you feel like buying those attractive pair of shoes online, you can pay for it using digital currency. Just like any other money, you can store your digital currency in a digital wallet. Types of Digital Currencies: In the real world, we have different forms of currencies which come with different nations. Likewise there have been a variety of digital currencies, developed over the years such Bitcoin, dogecoin, litecoin, mastercoin, etc. Bitcoin is one of the most popular and valuable crypto currency. A Bitcoin could be bought for $325 but if you don't want to spend that much cash, you can buy fractions of a Bitcoin for less price too. A Bitcoin could be fragmented into various parts up to the eight decimal places. How can I buy a digital currency? There are various exchange stores online such as Coinbase, from where you can buy digital currency. All you have to do is open an account with Coinbase where they will register you with a Coinbase wallet and an exchange to store your Bitcoin and do your transactions with it. Then you will have to link your bank account with it to facilitate the purchase of Bitcoin or you can use your credit card. If some of you just got alerted on hearing about bank account details, these digital money exchange stores are as safe as a locked-up safe. You need not worry about getting cheated as all of them are listed under the global monetary standards and follow strict guidelines. The benefits of shopping with the digital currency: Well, other than the convenience of not carrying it around everywhere with you, there are some advantages of buying and using digital currency. Protection from the burglars and credit-card thieves: How often have you heard about a gang of thieves that took the details of credit cards of some innocent chap and drained out his money? You read it, hear it every day. Digital money, however, eliminates any such threats and you can go about your merry business without worrying about getting mugged. Keep it private: What Bitcoin or other digital money offers to a customer is the most wanted and respected aspect; Privacy. You can purchase anything without getting a statement posted to your place like a credit card bill. Sure, you get a receipt but only you can access it. The transactions that you are making with this money are as hard to track as it is to crack a coconut with bare hands. Real tough. Free of all taxes and transaction fees: Those good souls who invented digital money do not charge you for using the algorithm-based coins neither do you have to pay any tax on them. The writer is the CEO of BankBazaar.com. Source: The Asian Age, Image: https://pixabay.com Creative Commons CC0.
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