What is Digital Currency?
A currency represents value which you can use to buy goods and services. We have paper currency such as Indian rupees printed by Reserve Bank of India which we use to buy things in daily life.
On the other side, we have Digital Currencies which are not issued by central banks. These currencies however are accepted by people as a means of payment for goods and services across the globe.
In a traditional bank, you will have to open a bank account and a bank would typically charge some money to process transactions.
Digital money is exchanged from one digital wallet to another over internet without having the need to go through the bank. Digital money can be stored in a digital wallet such as in phone, computer or other electronic storage devices.
You can get digital currency from digital currency exchanges in exchange of any printed currency such as Rupees, Dollars, etc.
Digital currencies are also called crypto currencies. Litecoin, Zcash, Ethereum, Bitcoins etc are all example of digital currencies of which Bitcoin is the most popular one which we will cover in next section.