What’s the difference between digital currency, virtual currency, and cryptocurrency in Hindi

 Difference Between digital currency, Virtual currency, and Cryptocurrency!

While Bitcoin consistently succeeds in garnering public curiosity, its complexity can overwhelm those seeking a simple explanation. Attempts at describing the way it works and the underlying mechanisms often contain confusing jargon and terms that require some understanding of tech and finance. One of the more common misunderstandings includes interchangeable use of the terms “digital currency,” “virtual currency,” and “cryptocurrency.” 

The three terms represent three different definitions. In today’s post, we cover the differences between digital currency, virtual currency, and cryptocurrency.

difference between digital currency, virtual currency, and cryptocurrency


Digital currency is the broadest term of the group as it’s able to represent many different ideas and concepts. Relative to cryptocurrency, which is defined based on set criteria, digital currency establishes a much more broad foundation.

As such, any financial transaction facilitated through technical means can be considered a digital currency, including digital transactions of legal tender. Cryptocurrency is in some regard a digital currency, though its definition is more complex and specific.


Similar to the digital currency, virtual currency is a digital representation of value that functions as a medium of exchange. However, unlike digital currency which can include “real” currency—i.e., the coin and paper money of any country that is designated as legal tender—the IRS explains that virtual currency is not recognized by any government body as a regulated currency. Most often understood as virtual currency are in-game currencies that hold no value among the rest of the world.


Classification as a cryptocurrency requires the transaction medium to employ encryption. While there’s no specific protocol that’s required, it’s fundamental that the digital asset can be transacted in a cryptographically secure manner to hedge against counterfeiting and to enable immutability.

We hope this post has helped you better understand the differences in classifying digital currency, virtual currency, and cryptocurrency.


  • Digital currency is not a cryptocurrency or virtual currency.
  • Virtual currency can be a digital currency and can also be cryptocurrency.
  • Cryptocurrency is both a digital currency and a virtual currency.


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