After fielding endless questions in online forums, in person meetings, and casual conversations about digital currency, I’ve decided to start answering questions in blog post form. I’m going to start with the basics, and work outwardly from there. Definitions of terms seemed like the best place to start, so here we go.
Digital Currency Definition
Digital currency is a form of currency that is only available in digital (electronic) form. Unlike other forms of currency, it has no physical representation, and can only be used via connected digital wallets.
That’s our definition here at Koin Keys. Other people have other definitions, though, and in the spirit of fairness, we wanted to highlight a few of them.
- Cointelegraph defines it as, “… a type of currency that has no physical form and only exists in digital form. Digital currencies include virtual money and cryptocurrency. This digital money may be used as traditional money to buy and sell goods, but with the allowance of instant transactions and borderless transfer-of-ownership.”
- Wikipedia defines it as, “… a type of currency available in digital form (in contrast to physical, such as banknotes and coins). It exhibits properties similar to physical currencies, but can allow for instantaneous transactions and borderless transfer-of-ownership.”
- Investopedia defines it as, “… a form of currency that is available only in digital or electronic form, and not in physical form. It is also called digital money, electronic money, electronic currency, or cyber cash.”
As you can see, there’s not a lot of disagreement about what digital currency is. But now that you know what it is, you probably have a few more questions. We’ve attempted to preemptively answer some of those below.
Digital Currency Prices
People often become overly-focused on the prices of different cryptocurrencies. While this can have a direct impact on net worth, it isn’t the be-all, end-all measurement for a cryptocurrency’s success. The fundamental purpose and value-add of each different coin/token is what you should be paying attention to.
If you do want to know what the current prices are, however, you should check out CoinMarketCap.com.
Alternatives to Coin Market Cap include:
Top 10 List
The list of the “Top” cryptocurrencies is changing constantly. We will likely have to update this section regularly. However, as of the time of writing, the top 10 cryptocurrencies by market cap are as follows:
- Bitcoin (BTC)
- Ripple (XRP)
- Ethereum (ETH)
- Stellar (XLM)
- Tether (USDT)
- Bitcoin Cash (BCH)
- Bitcoin SV (BSV)
- Litecoin (LTC)
- Tron (TRX)
Digital Currency Exchange
Exchanges are the websites where people go to buy and sell cryptocurrencies. There are many different options when it comes to choosing your favorite exchange, so don’t feel too much pressure to just pick one and run with it.
The list below is just our arbitrary opinion on the exchanges we prefer in order from best to worst. This is extremely subjective and depends largely on what kind of trading it is that you would like to do.
Digital Currency Group
This paragraph is only in this post because so many people stumble upon this article looking for information regarding DCG.
Digital Currency Group is an investment company founded by Barry Silbert that is actively investing in cryptocurrencies, blockchain-based technology solutions, and other crypto-related companies to help grow the economy of the future. To learn more about them, visit their website, dcg.co.