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The Difference Between Coins And Tokens You Should Know Before Investing In The Cryptocurrency World.

The Difference Between Coins And Tokens You Should Know Before Investing In The Cryptocurrency World.

Surely all this time we have assumed that Cryptocurrencies are the same as Tokens that we often encounter on crypto trading platforms.

However, actually the two have very big differences and cannot be equated in any way.

The difference between Cryptocurrency and tokens is in terms of the intrinsic properties of the blockchain, such as Bitcoin, Ethereum, Litecoin and many more, while the tokens that we often encounter use smart contracts on the blockchain that is used.

Certain protocols within the blockchain are usually owned by the cryptocurrency as the original asset, while the token is the one built on top of it.

Currently there are many tokens that are built on the blockchain owned by the cryptocurrency itself, one example is ETHEREUM, where ETHER is the original cryptocurrency asset.

Not only Ethereum is built on ether, there are many tokens that have been built on ether cryptocurrency, one of which is the Basic Attention Token (BAT).

Tokens usually work like cryptocurrencies, which means they are of the same type in the eyes of the blockchain, you can also move tokens from one account to another like cryptocurrencies.

Basically, these two digital assets have different classes using cryptography from the unique features of the blockchain itself.

Even so, there are so many crypto tokens built using the ethereum network blockchain, these tokens certainly have their own functions.

It all depends on what platform they have to build smart contracts, usually tokens are built because they have a long history.

If you are an investor in cryptocurrency, then you are required to solve the blockchain technology first before making your choice to invest.

Whereas if you are someone who invests in tokens, then you certainly have a different way to solve it.

Coins and tokens in cryptocurrency actually don't have much difference, but they cannot be equated because the differences between these two digital currencies are very important to know.