Think of cash you carry in your wallet or purse. A digital currency is similar, but it only exists electronically. You can't hold it in your hand, but you can use it to buy things online or send it to other people. Some popular examples of digital currencies include Bitcoin, Ethereum, and Litecoin.
Digital currencies are still a relatively new invention, and there are some challenges associated with them, such as volatility (meaning their value can fluctuate rapidly) and security risks. However, they also have some potential benefits, such as faster and cheaper transactions than traditional methods.
