In today’s article we will talk about Cryptocurrency Coins and about Tokens(crypto coin vs token). Let’s talk about the difference between these two. After all, what is the difference between Crypto Coins and Tokens, are they both the same or are they different.
Let us tell you that in today’s time, many beginners who are coming to invest money in this industry, they have confusion between Crypto Coins and Tokens, they are understanding these two things as one, due to which they have to suffer huge losses. So it is very important for them to know what is the difference between Crypto Coins and Tokens.
Table of Contents
What is Crypto Coin?
First of all we talk about Crypto Coins, those Coins come in Crypto Coins which have their own block chain like (Bitcoin, Bitcoin Cash, Ripple, Litcoin, Cardano) all these are Coins. Those who have their own blockchain have their own technology. They are not doing cryptocurrency transactions using any third party technology. If they are doing it then they are doing it on their own blockchain and they are doing it on their own technology, every single coin has some or the other feature inside their own blockchain.
Also Read : What is blockchain and how does it work?
What is Token?
Now let us talk about tokens, what are tokens. Tokens are those who develop their coins by using someone’s third party technology. If we talk about tokens, then first comes TRON which is using Ethereum technology, then comes EOS which is also using Ethereum technology, Vechain is also using Ethereum technology, Ontology is using NEO technology, Maker is using Ethereum technology, Gas is using NEO technology.
There are many such coins which are using different third party technology. All these tokens use similar third party technology to make their transactions successful. While this does not happen in crypto coins, they have their own blockchain and their own technology.
Crypto Coin vs Token / Difference Between Crypto Coin & Token
- Cryptocoin own blockchain technology do this.
- It is used solely as a transaction.
- All cryptocoins can be called tokens.
- Example :- Bitcoin, Ripple, Ethereum, Binance Coin.
- Tokens do not have their own blockchain. They use third party blockchain technology.
- Tokens are used to sign transactions with digital agreements.
- Tokens cannot be called Crypto Coins.
- Example: ENJIN, REN, Shiba Inu, Floki Inu, Polkadot.
Last me Note : Please read disclaimer before taking any action.
Also Read : What Is Bitcon & How Its Work?
Friends, this is the difference between a crypto coin and a token. I hope you have understood. If you liked this article, then definitely share it and whatever question you have in your mind related to this article, you can ask in the comment below.
Is crypto coin and token the same?
Is Bitcoin a coin or token?
Is ETH a coin or token?
ETH is a cryptocurrency.