Digital money, also known as digital currency or crypto currency, is a new and upcoming way of storing value. Unlike traditional currency which can be transferred to paper money from a bank account, digital money is entirely digital with only a number as an indication of value. The currency is often used by utilizing a digital wallet that can be accessed from devices such as computers, smartphones, and tablets. 

 

How Do I get Digital Currency?

There are several ways to acquire digital currencies. One way is to do work for digital currency. Many forums and online communities are dedicated to posting jobs for digital currency. Because digital currencies can be traded quickly over the internet, jobs that pay in them often times relate to the online environment. Examples include web development, writing, and graphic design. Another way to acquire digital currency is to trade traditional currency for the desired digital one. Many online exchanges including Bitstamp.net allow it’s users to buy or exchange traditional currency for Bitcoin.

What is Bitcoin? Litecoin?

Bitcoin

is the power player in the digital currency world. Created in 2009 as a decentralized payment system, Bitcoin is the world’s most valuable cryptocurrency. Currently trading thousands of times higher than when it was released, Bitcoin wasn’t always as valuable or well known. In the beginning bitcoin trading was mainly limited to the online community. Techies with backgrounds in programming, web development, and gaming were the first to adopt and embrace the currency. As the word of Bitcoin spread so did the user base. With the growing popularity dozens of digital currencies emerged. Examples include Litecoin, Worldcoin, and Ripple. More information can be found at Bitcoin.org.

What is a Decentralized Currency?

Most digital currency is decentralized. The money or value is not backed by government or financial institutions. The traders of the currency completely define it’s economy. Money is traded from one person to another much like cash, most of the time without possibility of a refund. This method of transfer has it’s fair share of advantages, however, it does cause sharp fluctuations in value.

Is Digital Currency Safe to Use?

While most digital currency has its own regulation and features in place to protect its users, it should still be considered high risk. Because of the extreme volatility, paying or being paid with a digital currency requires constant knowledge of its current value. In order to keep up with these currencies one should understand all the aspects of the currency they plan on using.

The Future of Digital Currency

While digital currency has emerged as an experimental and alternative way to store value, it’s future is still completely undecided. With it’s gaining popularity comes the pressure of lawmakers to regulate it. With it’s ever changing value comes the desire to profit from it. With it’s global reach comes the ability to change to world of money and value forever.

 

For more information, check out the “Top 20 Best Affordable Online Accounting Degree Programs (Bachelor’s) 2014“.