Beginners Guide to Digital Cash

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Beginners Guide to Digital Cash

by ICC on January 27, 2020
January 27, 2020 / by / in

Digital cash is known by many other names – electronic cash, digital currency and e-money being just some. The most widely-used form of digital money is cryptocurrency Bitcoin.  

Digital money isn’t tangible but is transferred using computers. People use physical cash to buy digital credits, which are stored in an electronic wallet. Digital cash is actually like cash and there is no particular hard- or software that has to be installed to use digital cash. 

You can say that digital cash is becoming more common because of the sheer convenience and to this end, there are many websites that help traders buy and sell bitcoin, a digital currency. 

Bitcoin unaffected by the economy of a country 

You can also install a bitcoin wallet on your cell phone or computer. As a cryptocurrency created in 2009, Bitcoin can be turned into hard cash through an exchange platform. It can be traded anywhere in the world and it isn’t affected by the economy of any country. 

Bitcoin is volatile and its price can change at the drop of a hat. Unlike the stock market operating during business hours, Bitcoin trades day and night. If you want to move bitcoin in or out of your wallet, it’s a bit like email. To send someone bitcoin, you require their bitcoin address, and if you want someone to send you bitcoin, you have to share your address.

Many Bitcoin ATMs

The future of cryptocurrency means having control over your money and not having to contend with all kinds of fees. Digital cash is becoming a sought-after online payment method because it isn’t subject to exchange- and interest rates or other levies. 

Like regular currency, digital cash can be used to buy objects and services and isn’t issued by a bank or by the government. Bitcoin allows digital currency to be unregulated and controlled by its developers and users. 

When you sell bitcoins for cash, you can make use of Bitcoin ATMs. You will need to identify yourself and then, depending on the settings, you will get cash out of the machine, or you will be given a redeem code. 

How to sell bitcoin is much the same as when you buy bitcoin – selling it on the same exchanges that you can buy it from. The sale transaction doesn’t take long but it may take a bit of time to actually withdraw the proceeds of the sale from your bitcoin wallet into your bank account. 

Want to know how to transact or how to sell bitcoin through a physical location? Well, it’s easy. Bitcoin of America is a registered money service business, a crypto exchange specializing in bitcoin transactions with their network of ATMs. 

Blockchain technology

Digital currencies are based on blockchain technology – public ledgers holding data in a secure way where transactions can’t be altered. It is believed that this e-currency is likely to disrupt financial services because it has the ability to reduce the cost of financial transactions. 

Advantages of digital cash

There are many advantages to using digital cash. One of them is the ability and affordability to do long-distance transactions as digital cash knows no borders. 

Sending actual cash can be expensive but digital cash can easily be sent around the world. Regular bank transactions require a lot of infrastructure, whereas digital cash doesn’t require any particular infrastructure. 

Digital cash uses the existing Internet network and computers, and the cost of digital cash transfer is much lower with the transaction completed through the Internet. 

Perhaps one of the greatest benefits is that cryptocurrency can’t be counterfeited and transactions can’t be reversed by the sender as well as cryptocurrency transactions providing anonymity. Digital cash payments can be used by businesses and individuals with access to the Internet and for all kinds of transactions.