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The world has gone digital and technology is equally evolving.its no longer as it was in the 10th century.
Digitalization has gone a long way in improving our lifestyle, providing means of livelihood and adding greatly to financial security.
When you talk about digitalization, digital economy takes the forefront as it is expanding rapidly and you need to go with the flow.

Digital currencies
Digital currency is money in an electronic form, exchanged for goods and services without the use of physical money.
Digital currency is speedily replacing physical money, so it’s safe you know about different types of digital currencies.

Types of digital currencies
Digital currency is a vast concept, referring to all the monetary assets that are in digital form, they can be regulated or unregulated.

Central bank digital currencies: In a growing list of money-issuing, Governments give out digital versions of their fiat currencies, known as central bank digital currencies (CBDC).

For example:

The Central Bank of Nigeria (CBN) officially launched the “ eNaira”—a central bank digital currency (CBDC) on October 25, 2021. This is the second CBDC fully open to the public after the Bahamas. Other countries and regions, such as China and the Eastern Caribbean Currency Union, have been conducting CBDC pilots with a subset of their citizens.

Given the size and complexity of Nigeria’s economy, this launch is drawing substantial interest from the outside world—including from central banks.

Cryptocurrencies: They are owned and developed by private parties, not from a Central bank or Government institution.
Cryptos makes use of Blockchain technology; it’s a decentralized, distributed ledger that records the provenance of a digital asset/crypto transactions.
Most cryptocurrencies also use cryptography to make the digital currency tamper-resistant and the network more secure.
The two largest Cryptocurrencies are Bitcoin and Etherum.

Bitcoin: it is the most famous and most valued cryptocurrency currently in existence, and it was created in 2008 by a group of people going by the alias Satoshi Nakamoto.

It’s decentralized and uses peer-to-peer transactions to connect users worldwide without the need to pass through the bank system.

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Ethereum: it is a smart contract platform that allows the leverage of blockchain technology to create numerous different digital portfolios. It can create more cryptocurrencies to operate on the blockchain. It can also be sent, received, or held as digital money.

Stablecoin: A stablecoin is a class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset. The key difference between stablecoins and traditional cryptocurrencies, however, is that stablecoins are backed by a reserve asset such as the U.S. dollar or gold, and they’re designed not to fluctuate in value like traditional cryptos.

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You can buy, sell, or trade digital currencies, but rely on proven and tested exchanges. There are numerous reliable platforms available for digital currency trading and exchange.Learn how to trade, study the market pros and cons and then take a bold step forward to your financial independence.

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Written by Promise

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