What are digital currencies?

Digital currencies are a form of currency that relies on digital technology and operates independently of traditional banking systems. Digital currencies use encryption technology to ensure secure and encrypted financial transactions, and the most famous of these currencies are **Bitcoin** and **Ethereum**. These currencies emerged in the last decade and gained wide popularity around the world.

Digital currencies are based on blockchain technology, which is a distributed database that acts as a digital record of every transaction made using these currencies. This technology allows for great transparency and high security, as the data cannot be modified after it is recorded, which enhances trust between the transacting parties without the need for an intermediary such as banks.

One of the advantages of digital currencies is that they provide fast, low-cost, and cross-border transactions. Users can send and receive money anytime and from anywhere in the world, which opens wide doors to e-commerce and international money transfers. It also gives individuals more privacy and control over their money.