In today's digital age, the development of the currency circle has become more and more eye-catching. As digital currency gradually enters people's lives, people begin to think: Is digital currency better, or is traditional legal currency more reliable? Let's take a deep look at the advantages and disadvantages of digital currency and legal currency transactions to see which one is more suitable for your needs.

First, let's look at it from the perspective of digital currency. Digital currency, as a virtual currency, has the greatest advantage of decentralization and security. Bitcoin, as one of the most famous digital currencies, is famous for its encryption technology and blockchain technology. This decentralized feature means that there is no central authority to control, and transactions are more transparent and secure. For example, blockchain technology enables every transaction to be recorded in an unalterable database, ensuring the authenticity and security of transactions. This feature has attracted many investors and users, especially those who lack trust in the traditional banking system.

However, just as there are two sides to a coin, digital currency also has some disadvantages. First, due to the high volatility of the digital currency market, the investment risk is relatively high. The sharp fluctuations in the prices of digital currencies such as Bitcoin may cause investors to suffer huge losses. Secondly, although digital currencies are more secure, there is also a risk of being hacked. The Mt.Gox incident in 2014 is a typical case. The hacker attack caused the exchange to go bankrupt and billions of dollars of Bitcoin were stolen. Therefore, when choosing digital currency as a trading tool, users need to be cautious and strengthen security awareness.

In contrast, as a representative of the traditional monetary system, the advantages of fiat currency cannot be ignored. First, fiat currency has wide acceptance and stability. As a national legal currency, fiat currency is widely accepted worldwide and can be traded conveniently and quickly. Secondly, fiat currency is issued and managed by the central bank, and the government has the ability to maintain the stable value of currency and avoid inflation and deflation through monetary policy.

However, fiat currency also has some disadvantages. First, since the central bank can issue currency at any time, there is a risk of inflation. Excessive issuance of currency may lead to currency depreciation and damage people's wealth. Secondly, the traditional legal currency system needs to rely on intermediaries such as banks to conduct transactions, and there are certain transaction costs and time delays.

In summary, digital currency and legal currency each have their own advantages and disadvantages, and which currency to choose depends on personal needs and risk preferences. For users who pursue decentralization and security, digital currency may be more suitable; for users who pursue stability and wide acceptance, legal tender may be more attractive. In the future development, digital currency and legal tender may merge with each other and jointly promote the progress and innovation of the monetary system.

No matter which currency you choose to trade, you need to be cautious, understand market risks, and protect personal property safety. I hope this article can provide you with some reference for comparing digital currency and legal tender. I wish you a rich return in currency trading!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Before answering this question, the editor of Coin Circle will briefly introduce the currency-to-currency transaction and the legal currency transaction. The currency-to-currency transaction is mainly for the transaction between virtual currencies and virtual currencies, and one of the currencies is used as the unit of account to purchase other currencies. Legal currency transaction is to buy, sell or trade digital assets through legal currency. The legal currency here refers to the legal currency of the country, such as the RMB in China. After understanding the meaning of currency-to-currency transaction and legal currency transaction, let's get back to the topic. Which is better, currency-to-currency or legal currency transaction? In response to this question, the editor of Coin Circle will analyze which is better, currency-to-currency or legal currency transaction?

 Which is better, currency-to-currency or legal currency transaction?

Coin-to-currency transaction means that the trading platform only supports transactions between digital assets and digital assets. It not only supports the exchange services between mainstream digital currencies such as Bitcoin, Ethereum, Litecoin, etc., but also supports new, popular and high-quality currencies to trade on the platform, making the exchange between various currencies faster and more convenient. The most essential point is that it does not support any legal currency. Bitcoin Trading Network International Station is one of the most typical representatives.

At the same time, everyone will naturally think of the fiat currency trading platform. The digital asset counterparts of this type of platform are all fiat currencies, which may be RMB or US dollars. The fiat currencies of different platforms will be different according to the platform's positioning, country, etc. For those investors who are eager to withdraw cash, the greatest convenience is that they can directly cash out digital assets.

Since transactions between fiat currencies and digital currencies can be cashed out, why do we still need to carry out currency-to-currency transactions? Let the editor of the currency circle share with you the benefits of currency-to-currency transactions.

First of all, the most basic point is that it can reduce the cost of exchanging currencies. Traditional currency-to-currency trading platforms only have the exchange of fiat currencies and digital currencies. If you want to buy other digital currencies, you either increase investment and directly recharge fiat currencies to buy; if you don’t want to increase investment, you have to exchange the previous digital currency into fiat currency, and then use this fiat currency to buy the required digital currency. Such exchange will invisibly increase the economic and time costs of investors. Currency-to-currency transactions can directly realize the exchange between digital assets, which is convenient and fast, and the economic and time costs are relatively economical, and there is no need to increase investment.

The application scope of digital assets has expanded, and commercial demand has continued to increase. At present, many digital asset exchanges, digital asset-related media, digital asset summits, speeches, forums, etc. require digital currency for payment, and future innovative asset investments. The coin-to-coin trading platform can easily switch between various digital currencies, which can provide users and enterprises with a good experience in cooperation to a large extent.

Secondly, coin-to-coin trading also provides a good opportunity for arbitrage within the platform. The various benefits and conveniences are obvious, and the booming development of the network is a good witness. The global coin-to-coin trading volume has exceeded the trading volume of digital assets against legal currencies, which is a good proof from the data, and coin-to-coin trading will become more and more popular.

At the same time, digital assets themselves are an international content, and domestic digital asset transactions need to be in line with the world. Now there are many old trading platforms that have declared that they want to be a coin-to-coin trading platform. After investigating the domestic and foreign situations, the Bitcoin Trading Network International Station took the lead in opening the coin-to-coin trading mode in China. I believe that there will be more coin-to-coin trading platforms in the future.

 What is the difference between legal currency trading and coin-to-coin trading?

The method of currency-to-currency trading is very simple. You only need to register a digital asset exchange and conduct real-name authentication to invest and buy and sell. However, not all digital asset exchanges support fiat currency trading, and there are many ways to trade fiat currency:

1. Digital asset exchange

For example (you can create an account if you don’t have an account)

(Note: domestic users currently only support email registration!), English name:, its founder is a Chinese-Canadian engineer Zhao Changpeng, currently ranked in the top three in the world, Binance.com trading interface is very user-friendly, provides different national languages, supports multiple currencies and often lists new currencies.

Binance was founded in 2017 and is headquartered in Malta. Always put user interests first, and strive to provide a safe, fair, open and efficient blockchain digital asset trading environment. At the same time, with blockchain as the core, establish a full-scale blockchain ecosystem, Binance will work with Binance users to create a new blockchain world and create history together.

2. Guaranteed transaction

Since the end of 2010, a forum called bit-cointalk has appeared with a transaction method guaranteed by personal credit. The objects of transaction are varied, such as:
BTC mining machines, physical coins, and even stocks. The more famous "Big Three" at that time were Monbux, Tomatocage and OgNasty. Currently, OgNasty-
has been providing guaranteed transactions for netizens.

3. Offline transactions

In fact, the two parties reach a purchase and sale intention through email, phone, chat software, etc., and then conduct offline transactions. To put it bluntly, it is a one-handed payment and a hand-handed delivery. However, this transaction method has great security disadvantages and is generally only suitable for familiar groups or large transactions.

Through the above introduction, I believe that everyone has an understanding of which is better between currency and fiat currency transactions. No matter which virtual currency transaction method investors choose, as long as they are well prepared in the early stage, the risks other than price fluctuations in the later stage will be smaller. The early preparations mentioned here include the selected virtual currency and, a promising virtual currency will reduce the risk of investors being deceived, and a formal virtual currency exchange can reduce the risk of the exchange running away and collapsing. If you want to know more about related issues, you can pay attention to the currency circle. The editor of the currency circle will continue to update relevant reports in the future!