Learn about the most important differences between coins and tokens
Coin and token, or the so-called token, are two completely different things from each other. What is strange is that many users of digital currencies confuse them, and despite that, each of the two terms remains completely different from the other.
Because these terms are considered new to users, this is what led to confusion between the two terms, but both coins and tokens are considered encrypted currencies, and many of them are not traded as a currency, and they were not meant to be treated as a currency from the beginning, and because Bitcoin includes all the features that make it suitable for the trading process. It was called the coin or cryptocurrency, the encrypted currency, and although most of the currencies that came after Bitcoin were called encrypted, many of them, and this dangerous fact, is what misleads many new users of digital currencies. When they seek to own digital currencies, they find themselves owning a token. Instead of currency
coin
Coins are digital money, or more simply, they are equivalent to real money, but in digital (electronic) form, coins have the same properties as real money.
Currencies or coins were created using encryption techniques that preserve their value over time
Currencies or coins are built on their own independent software, which is called Blockchain. There are currencies based on the Bitcoin protocol and others based on their own protocol that was created specifically for that currency.
Bitcoin is the most famous and oldest digital currency, and the blockchain technology on which Bitcoin is based prevents deception by users.
Currencies do not have any other function other than acting as money that can be used in trading, buying and selling operations. It can be sent, received and mined.
Examples of coins
bitcoin
ethereum
monero
XRP
litecoin
Tokens
A token is a digital asset whose only use is within its own network. The token has uses other than the use of real money
The token gives the person the right to participate in the system, which is a share of the company
The token is usually built on the blockchain of a currency, and most tokens (tokens) are built on the Ethereum network.
Creating a token is much easier than creating a coin because when you create a token, you do not have to create a new code or modify codes. It is enough to use a template from a platform such as Ethereum to create a token.
The token represents a share of participation in the company or gives you access to a specific service or product provided by that company
Examples of tokens
binance coin
tether
maker
USD coin
This topic was to clarify the difference between coins and tokens and the most important features of each
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