Know the difference between crypto coins and crypto tokens


Crypto Coins vs Crypto Tokens – Key Differences in the Cryptocurrency Market

Coins refer to any cryptocurrency with a standalone, independent blockchain such as Bitcoin.

The main difference is that tokens are usually dApp specific while coins are mostly used as money.

Crypto tokens are a unique release from wider smart contract platforms such as Ethereum that allows users to create, spend and manage tokens derived from the primary blockchain.

While cryptocurrency transactions are handled by blockchain, crypto tokens rely on smart contracts.

For crypto coins, only account balances change, but when a token is issued, it is physically moved from one place to another, e.g. NFTs (Non-Fungible Tokens)

While cryptocurrencies are essentially digital versions of money, tokens can represent assets or deeds.

A crypto token is easier to create than a cryptocurrency coin. To form a new crypto token, a developer can simply follow a template approach on their chosen blockchain, namely Ethereum or the fast-growing NEO platform.

While coins can be multifunctional, tokens take more forms than just giving users access to products and services offered by a dApp.

The use of coins is mainly as a means of payment for services or goods on a blockchain. Tokens are also used as vessels that represent products and items of the physical world.

Examples of Crypto coins are Bitcoin, Ripple, Litecoin, Dogecoin, etc. Examples of Crypto tokens are Tron, Tether, Augur, Chainlink, etc.

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Analytics Insight

Analytics Insight is an influential platform dedicated to insights, trends and opinions from the world of data-driven technologies. It tracks developments, recognition and performance of companies in the fields of artificial intelligence, big data and analytics around the world.

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