Crypto has been very popular in recent years and trades for millions of dollars are done on daily basis.
Highlights
- Crypto Coins are built or forked upon their blockchain whereas Crypto tokens are built on a pre-existent blockchain.
- Coins are used to transfer money or store the value as a unit of account or purchases but Tokens are used with decentralized apps to represent the value of the real thing.
- Coins take time to prepare and a token can be prepared within a few minutes with the already made platforms.
It is possible that people don’t even realise whether they are dealing with a crypto coin or crypto-token as digitisation has made it very easy to trade crypto these days.
It is also a fact that there is very little difference between coin and token but there is a difference. The main difference between them is their utility. Some market only accepts coins wise versa some market only accepts tokens.
Crypto Coins are the crypto which operate on their separate blockchain and it was made popular when Bitcoin came out. Crypto Coins can be used as money, for daily transactions or store value for longer durations. Crypto Coins can be mined.
Crypto Tokens unlike coins, don’t have their separate blockchain and they operate on crypto coins’ blockchain. The most common token are BAT, Tether, USDC, etc. Crypto Token doesn’t move around like coins.
For example, if we transfer money from one account to another, the money itself doesn’t move but the value moves to the other account. That’s what a token is, it is the real value of the coins which can be transferred by moving around the coins.
Summary of the difference between coin and token
- The difference is not much between them but it is not that small that it can be overlooked.
- Coins can be mined but tokens can be mined as they represent the value of the coin itself.
- Token are mostly how we see our money when we spend online or transfer through some portal.
- Coins and tokens can sometimes not be accepted in the same marketplace.
You can read more about cryptocurrencies and their myths here.
