What is digital coin?

Digital currency meaning

Digital currency is the fastest way of making electronic transactions. It acts as an optimized way to send or receive money. Digital coins are secure, stable and user-friendly. These coins such as Ethereum and Bitcoins are a universal entity and is accessible by one and all. Being a mobile entity, these coins are perfect to use on the go. Online wallet, software wallet, and offline wallet are the best means of storage for Bitcoins.

Trading and Service with Digital Coin

Digital coins hold two main purposes i.e. trading and service. People can trade bitcoins in exchange for other currencies. In exchange for bitcoins, Euro, USD, INR, and Ruble etc are the currencies a user can avail. Alcurex and Cryptopia are some of the best exchanges available. In case of service, the coins can be used in finance & marketing, Internet & mobile services and physical products.

There are two major systems for money transactions i.e. centralized systems (with authority) & de-centralized systems (with no authority). In systems with the central authority, third parties such as banks, credit card issuers etc. operates the money. In systems with no authority, there is a direct money transfer from sender to receiver.

Recommended: Know about how does cryptocurrency work?

A digital coin solely relies on a decentralized network and works on the principle of cryptography. It is a way of developing secure communication. Due to many benefits, Digital coins are preferred over centralized systems. Firstly, Central authorities have no involvement in account generation. Secondly, transaction costs are minimal.

Mining of digital coin

Advanced devices such as ASIC (Application Specific Integrated circuit devices) or GPU (Graphical Processing Unit) are exclusive platforms for generating these coins. Once generated, users can store it in wallets or send it to other users. Coins are compatible with operating systems such as Android, Mac or Linux.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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