DIFFERENCES BETWEEN COINS AND TOKENS

[sunnyego]

DIFFERENCES BETWEEN COINS AND TOKENS

coins are built on their own unique blockchain while tokens are built on an already existing coin's blockchain network

Examples Will come with pictures

What are tokens and coins?

In simple terms the difference between tokens and coins is that coins are unique to their blockchain while tokens depend on other blockchain or they don't have their own blockchain. Coins are used to pay for transaction fees on the blockchain and are also used as payment or digital cash.

Examples of coins are bitcoin, Ethereum, litecoin, xrp, solana, polkadot, tron etc.

Examples of tokens are uniswap, chainlink, cake, safemoon, BTT, wink etc.

Tokens built on the Ethereum blockchain are called ERC20 tokens

• Tokens built on the Binance Smart Chain are called BEP20 tokens

• Tokens built on the Binance Chain are called BEP2 tokens

• Tokens built on the Tron blockchain are called TRC10 or TRC20 tokens

And the list goes on and on.

 

[Jasz]

One of the most common mistakes inexperienced entrepreneurs make when dealing with the new digital economy is confusing coins and tokens. Though they are similar to one another, they are in fact distinct products and should be handled as such.

Tokens are a specific application of blockchain technology. They are units that can be earned or purchased, which can be used to obtain products or services from a company. This is the most common use for tokens in the new digital economy, but it is not their only use.

Spending tokens has advantages over spending traditional currencies:

-The seller/service provider only has to deal with one form of payment instead of multiple types

-You may also be rewarded for using your tokens rather than traditional currency

-They offer an incentive to hold onto them rather than spend them immediately, which helps stabilize the value of the token in relation to its purchasing power, making it less volatile than many other forms of currency

Coins are units that can be earned or purchased and that can be used to buy products or services from a company or another person, much like tokens. The main difference between coins and tokens is that you cannot earn or purchase coins directly from the company creating them. To obtain coins, you must purchase them from someone who already owns them using traditional currencies

 

[btaliat]

Coins and tokens are what are traded in the crypto world but there are difference in the way the two works. While most exchange platform list coins on their platforms which means coins can be traded, exchanged and even invested on, tokens are not really listed. It can only he listed and saved on wallets.

Just like the poster has already told us what coins arez I will only reiterate what he said by letting us know that token may not really have any value until it is converted to coins. This is because tokens unlike coins are not useful for any transactions.

 

[blessingc]

There are very big differences between crypto coins and crypto tokens.
Coins are a native to a blockchain and is used to trade currency and store value, some examples of coin are Bitcoin, Ethereum, Litecoin, Ripple and some others. While tokens are pretty similar, but it tends to use another coin's blockchain,
Coins directly represent a proposed medium of exchange, Unlike coins, which directly represent a proposed medium of exchange, tokens are a representation of an asset. These ‘tokens’ can be held for value, traded, and ‘staked’ to earn interest. Tokens are decentralized apps built on an existing blockchain. Some examples of tokens are Uniswap, Chainlink and Polygon.


If crypto coin transactions are handled by blockchain, then tokens rely on smart contracts, when a token is spent, it physically moves from one place to another. A great example of this is the trading of NFTs which is Non Fungible Tokens. A token represents what you own, while a coin denotes what you're capable of owning.


Tokens occupy a unique corner of the cryptocurrency market where they function as “utility” tokens. Coins need to be exchanged with each other through cryptocurrency exchanges because they are built on different protocols. Cryptocurrency markets is a challenging task, but understanding the basic distinction between the various types of cryptocurrencies can help you manage risk