Analytics Insight presents to you some major differences between digital currency and cryptocurrency.

The whole world is experiencing a drastic shift from traditional wallets to digital wallet through digital transformation. A digital wallet holds digital currency as well as a cryptocurrency with advanced blockchain technology. Yes, for beginners it may be difficult to differentiate between digital currency and cryptocurrency. But there are massive differences between these two currencies in the digital wallet.

Digital currency is the electronic model of currency notes and coins that can be stored in the digital wallet. The digital currency can be transformed into cash in hand, if necessary by withdrawing cash from any ATM or bank. It is intangible cash with an open-source contactless transaction flow between two parties.

Cryptocurrency is the encrypted form of digital currency, which is still highly volatile in the global investment market. The cryptocurrency has different names with respective companies who launched it in the market— Bitcoin, Ethereum, Dogecoin, and many more. It is created with the help of advanced blockchain technology to maintain smooth transaction flow.


Digital currency v/s cryptocurrency: Major differences


This is the primary major difference between a digital currency and cryptocurrency in the digital wallet. The digital currency is not at all encrypted while the cryptocurrency is highly encrypted. In digital currency, one needs to open an account without any security – at any time your bank account can get hacked and you may lose all the existing cash. But in cryptocurrency, one needs to open an account in a forum with a cybersecurity system to protect all Bitcoins and Dogecoins from severe cyberattack.


Current Rate

The current rate of digital currency is almost constant and easy to deal with in the global market. There is no need for extensive research before dealing with any kind of transaction. But in the case of cryptocurrency, the market is highly volatile. It consists of potential risk without any extensive research before any investment or heavy transaction between two companies. There is a probability to experience a sudden change in the rate of cryptocurrency while completing a transaction.



There is a little bit of transparency in the information while dealing with digital currency. The receiver or sender of digital currency will only get the information related to the transaction process— amount, bank, time, and date. But transparency is the most important feature of cryptocurrency. Blockchain technology provides the entire stream of conversation between the two parties regarding all transactions— past and current. All the private conversations are maintained with confidentiality only between the dealers and no one else can get access to it.



The digital currency has the centralized authority where the Reserve Banks control the entire banking system of the respective countries. Banks have the authority to closely monitor the transaction flow for everyone whether it is for a digital wallet or a physical wallet. In the case of cryptocurrency, it is a decentralized system where there is no presence of a third party to have authority over the investors.


Transaction fee

There is a hefty amount of transaction fee with digital currency every time there is payment through the digital wallet. But there is no system of transaction fee in dealing with cryptocurrencies. Blockchain technology helps to reduce the expense as well as no extra commission for the third party agents. Cryptocurrency is very useful for investors to deal with heavy transactions involving valuable assets.