As a newbie in the cryptocurrency space, it’s normal for you to get confused of the difference between coins and tokens. In most cases, you’ll see these two terms often used interchangeably in cryptocurrency platforms and blogs. At any point, they may seem alike and similar, but they aren’t the same. The first thing you should know is that both crypto coins and tokens are digital assets and are extensively different concepts in the crypto ecosystem. This article explains the difference between crypto coins and tokens.
What is a Crypto Coin?
A coin in cryptocurrency is any digital asset that has a single blockchain system. Primarily, a coin originates and plays by the rules of the blockchain. For this reason, many people refer to a coin as the currency of that blockchain. Asides from being a currency, a crypto coin is a means of exchange as well as a means of saving passively. Great examples of crypto coins include the most popular Bitcoin, Ripple, Ethereum, among many others. Some features common to most crypto coins include;
- They are primarily decentralized entities
- They depend on a blockchain
- They follow the cryptocurrency graph system.
You can use crypto coins in many ways. In most cases, you can even liken a coin to the regular money you have, as you can use it to pay for items. Some ways to use crypto coins include;
- Money Transfer
- eCommerce
- Savings
- Token building (Ethereum)
- Making network decisions (Dash)
What is a Crypto Token?
The primary difference between crypto coins and tokens is the blockchain difference. Tokens do not have their single blockchain; they always depend on already existing blockchains. Since they’re built on an existing blockchain, it doesn’t mean that it’s easy. The process of creating a crypto token is not a job for a newbie in any way. In most cases, these tokens are built by a blockchain network. The most popular token platform in the crypto world is Ethereum. Ethereum blockchain supports tokens the most because of its affiliation with smart contracts. There are many types of tokens on the Ethereum network, like NEO and DAI, but the original Ethereum tokens have a family name, ERC-20. An example of a token is Fanspel, which is used to power the first blockchain-based fantasy platform of the same name. If you create a token on a blockchain, you’ll require other miners on that blockchain to endorse the existence of the token. Some features of crypto tokens include;
- They are guided by a set of programs, features, and rules provided by smart contracts.
- They are open to almost everyone but can’t be controlled by anyone.
- The tenets of most tokens are visible to everyone.
Like crypto coins, tokens also have their uses. Some of the uses of a crypto token include;
- Value transfer
- Investment proofs
- Product/service access
Conclusion
As a newbie in cryptocurrency, the most significant difference between crypto coins and tokens is the blockchain feature. A coin will have its blockchain, while a token will rely on that blockchain. However, in most cases, tokens perform some duties of cryptocurrencies and even some more.
https://fanspel.medium.com/crypto-coins-vs-tokens-whats-the-difference-7447b6482e02
Pre Sale Went - We are believing to create own crypto trading platform so anyone can buy any crypto in one click.
went cryptocurrencyWeNetworkTo the future togetherWeNetwork is a local area driven venture based on Binance Smart Chain #BSC.
We are accepting to make own crypto exchanging stage so anybody can purchase any crypto in a single tick.
WeNetwork will be the crypto installment passage frameworkWeNTWeNetwork is a local area driven venture based on Binance Smart Chain #BSC.
WeNetwork will be the crypto installment entryway framework.
went tokenOur plan to accomplish 5AAnybody , anything , whenever , anyplace , at any rate .WeNetwork is a shared computerized cash .WeNetwork is completely decentralized, and it sets aside less effort for exchanges.
'Blockchain' is the new trending latest technology that is emerging nowadays.
Libonomy is one of its kind blockchain that has achieved the goals of innovation and creativity with great success.
The kind of innovation it advertises attracts and reaches out to masses that have the knowledge that the system is fulfilling its role of greatness.
Many only talk about a new system of blockchain but Libonomy is on its road to fulfill that ideology already.
The uniqueness of any organization becomes its trademark and the uniqueness of Libonomy is that it offers its clients to explore beyond their imagination and think out of the box.
The specialty of Libonomy Blockchain is that it does not use the previous consensus algorithms that have been used for a very long time.
This month we'll be taking a glance at the simplest exchanges for coin staking, a replacement various for collateralized loans and also the initial actually global crypto card & its loyalty reward program.
The Bitcoin Simplest Sites to obtain free crypto, thus you can increase your crypto savings, from little amounts to huge bounties.
And with Cloudbet's new lowest minimum bets at only 10 Satoshi even the smallest takings will grow to be big winner amounts.
Holders that become active participants within the consensus method area unit rewarded with a form of passive interest in the same cryptocurrency within the case of Stellar XLM, or through another currency within the case of modern and GAS.
Although the typical holders might not have the technical information, time or need to move participants; their area unit still ways that to earn staking rewards by staking through exchanges or staking pools.
Binance has recently proclaimed it'll be adding XLM to the list of currencies obtainable for staking.
However, for now, after observing the gap between bitcoins and others in terms of value, trust, and usability, it looks like their dream will remain far away for a long time.Bitcoin has no single competitor as there is no cryptocurrency matching the trust of Bitcoin, and if we talk about the value then no one is near its half.
This is also possible due to the lack of interest shown by the big players from other industries.
The interest of some of the top brands is not only limited to accepting crypto-payments and investing in this sector but they are also planning to launch their own cryptocurrencies.
Amazon Planning to Launch its own cryptocurrencyThere were a lot of rumors and speculation in the mainstream media and crypto world about e-commerce giant Amazon will soon accept selected cryptocurrencies as a payment option.
Amazon is already experimenting with crypto for years.Amazon Web Services (AWS) is a cloud-based, online infrastructure platform and thousands of companies pay Amazon billions every year to rent access to the network/ platform instead of building their own.Amazon's AWS is also the network backbone for a broad segment of the current cryptocurrencies and crypto-projects.
Since then, Amazon Coin has been limited to small transactions on games, gift cards, and apps to benefit from additional content on one's smartphone or Kindle Fire tablet.The company also hired people to launch a new payment product and it is expected that their product will make people able to convert their cash into amazon’s digital currency.
If you haven’t got a chance to invest in bitcoins or any other cryptocurrencies & want to get a headstart on the next big thing after bitcoin, you might want to read this article.
It may or may not burst in few months.
In every 10 minutes, on an average, the BTC network adds a new block, and each block is limited to one megabyte for 2000 transactions per block.
This problem leads to chocking of the bitcoin network, increasing demand for verification of transaction.
Here is a live graph of Bitcoin price
But, you don’t need to worry about that for now, because I want to bring your attention to altcoins.
For most people the financial market crisis that came by in 2008 is hard to forget.
Hence, for savvy investors, they need to get the right plans and strategies in place to hedge against such uncertainties and a drop in the market prices.The traditional stance is always to hedge against such volatility by buying gold.
This has indeed proven to be effective in the past, but there is a new alternative that today challenges what was considered a safe haven for the old schoolers.
Supply always remains low no matter how high the demand.
That makes it valuable as an asset to hold onto.
For instance, Bitcoin can be considered as digital gold as the supply of Bitcoin is limited.
