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Difference between coin and token

You must have heard about coin and token in general. These terms are becoming more popular in cryptocurrency and have completely different concept. But many of the investors or cryptousers get confused with coin and token and assume it same. That’s why in today’s article, we want to clear this confusion for you and let you know the major difference between coin and token. Many time due to this type of confusion, many misunderstandings and consequence happens so it is very important to avoid them before any bad situation. While using cryptocurrency, you need to understand every concept behind each term because there is much money involved. So, let’s move ahead and know about the difference between coin and token. We will see the differences in brief but before that let’s know about the term in detail.

  • Coin – Coins are the type digital money which has been created with encryption techniques. It is equal to money which can store values. The example of coin we can take is bitcoin. You must be familiar with this as it is most popular cryptocurrency available in the market. The concept of bitcoin is based on blockchain where you can find all the transactions. Now comes to coin, they have same techniques or concepts as money like you can accept, divide, port them and also they have very limited supply. You can easily send and recieve them with others.
  • Tokens – Tokens are known as digital assets which can be issued by any project. The function of token is somewhat similar to coin but there is a big difference also. The token holder can participate in the network and access all the functions. Tokens can be use for certain reason and project. You cannot use them to everywhere so the selected project only allow you to use tokens. If we talk about the process and token can be made easily compare to coin. You can get any template from any platforms. For example, Ethereum which is also based on blockchain allowed everyone to create token without any complex method. 

Coin Vs Token Comparison

CoinToken
The coin is known as digital money and performs the same function. The token is known as digital assets which are issued by the project.
You can send coins, receive them and mine them.You cannot do this function with tokens,
The coin is only designed for working as money. It cannot perform many functions.The token is known as digital assets which are issued by the project.

Confusion

Squid Game Crypto

You must have heard about coin and token in general. These terms are becoming more popular in cryptocurrency and have completely different concept. But many of the investors or cryptousers get confused with coin and token and assume it same. That’s why in today’s article, we want to clear this confusion for you and let …

What is Cryptocurrency?

You must have heard about coin and token in general. These terms are becoming more popular in cryptocurrency and have completely different concept. But many of the investors or cryptousers get confused with coin and token and assume it same. That’s why in today’s article, we want to clear this confusion for you and let …