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What is digital currencies and the uses of digital currencies?

 Recently, we hear a lot of terms such as: cryptocurrency trading, investing in cryptocurrencies or names such as the digital currency Bitcoin... so what is all that? What are digital currencies? And what can you do with it? Is Bitcoin the only digital currency in the world? We will answer all these questions in today's article, so keep reading to the end!


 What are digital currencies?

A digital currency is a cryptocurrency that enables you to purchase goods and services online. It uses a digital online ledger with strong encryption to ensure and protect online financial transactions.

The growing interest in these virtual currencies comes as a result of what is known as "digital currency trading", in which these currencies are bought and sold to achieve real financial profits from them.

And they are coins that you do not see with your eyes and do not touch with your hands. Rather, they are numbers and symbols that you find on the computer screen. Each currency has a symbol or a sign.

Uses of digital currencies:

In this topic, we review five amazing uses of cryptocurrency, starting with:

1-Low cost of transferring between them:

Perhaps the most important feature and use of cryptocurrencies is the free transfer between accounts between them, as they are almost non-existent, for example: $ 99 million can be transferred from Litecoin currency and transferred within 2.5 seconds and costs $ 0.40 as transfer expenses.

2- Non-compliance with the terms of conventional banks:

Also, one of the most important features of encrypted digital currencies is that they are freed from the restrictions and conditions that govern traditional banks, as they are not subject to the possibility of freezing the account, or confiscating funds, as no central authority can control this except for those who have the key to enter the wallet.

3- Providing the possibility of investing in companies:

The new feature brought by cryptocurrencies is the possibility of investing in start-up companies in their early stages by investing in the purchase of initial coins when they are launched (ICOs) and thus winning the possibility of investment success when the company succeeds.

4- Secret transfer and non-disclosure of the identities of the customers:

Some cryptocurrencies provide the feature of anonymous transfer without revealing the identities of the dealers (sender, receiver). Among these currencies, Monero, Zcash, PIVX and other currencies are a modern feature that traditional currencies do not have.

5- Crossing geographical borders:

The popularity of encrypted digital currencies has reached a global level, which made many countries from all over the world accept dealing with them, and thus it became possible to move and cross geographical borders without facing the problem of currency differences, all thanks to Bitcoin and others, as it became available in ATMs, as well as the presence of Many flight and hotel booking sites using cryptocurrency such as CheapAir and Destinia.

Here are some of the most important uses that can be gained from using encrypted digital currencies.

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