• Digital currencies are currencies that are only accessible from computers or mobile phones because they only exist in electronic form.

  • Typical digital currencies do not require intermediaries and are often the cheapest way to trade currencies.
  • All cryptocurrencies are digital currencies, but not all digital currencies are cryptocurrencies.
  • Some of the advantages of digital currencies are that they allow for a smooth transfer of value and can reduce transaction costs.
  • Some of the downsides of digital currencies are that they can be unstable when trading and prone to hacking.