Digital currency refers to money that exists only in electronic form, making it a convenient alternative to traditional cash. It encompasses various forms, including cryptocurrencies like Bitcoin and Ethereum, which utilize blockchain technology to ensure secure transactions and transparency.
Unlike physical currencies, digital currencies can be transferred instantly across borders, enabling faster and more efficient transactions. They are becoming increasingly popular for online purchases and investments, attracting both individual users and institutional investors. As the world moves towards a more digital economy, understanding digital currency is essential for navigating the future of finance.