Beginners - Explaining the difference between coins and tokens

[Amir Vao 341]

On 11/12/2019 at 10:50 PM, phabulu said:

Token is a cryptocurrency that requires another platform to exist and function. Tokens can represent anything that has been programmed into a Smart Contract on Blockchain, they are basically any assets that are fungible and tradable. 

Creating tokens is much easier than creating a new currency because it uses an available platform that has already been created, which means you don't have to modify the codes of a particular protocol or create a zero block.

In short, coins are standalone cryptocurrencies that require no other platform to run on, while Tokens are created on platforms that typically have their own currency.

 

Understand where the definition of Cryptocurrency comes from. Cryptocurrencies are digital or virtual currencies that are encrypted using encryption. Cryptography refers to the use of encryption techniques to secure and verify the transfer of transactions.

Bitcoin represents the first decentralized cryptocurrency, which is fed by its users without a central authority or intermediaries to control and all transactions are chronologically recorded in Blockchain.

 

All you have to do is follow a standard block model - like Ethereum, which is chosen because of its unique and amazing block technology - that lets you create your own tokens. This functionality of creating your own tokens is possible through the use of Smart Contract, which are computer codes registered in a Blockchain, so that they cannot be deleted or edited.

 

There are many tokens developed on top of the Ethereum platform like EOS, VeChain, OmiseGO, Binance Coin, Augur, Status and many more. Just go to the Coinmarketcap website and click on the “Tokens” tab. There are also a number of other platforms available for tokens to develop, such as Counterparty, Bitshares, Waves, Qtum, Nxt, Omni and NEO.

 

This post source is my official Steemit:

https://steemit.com/token/@phabulu/explaining-the-different-between-coins-and-tokens

In this post before I thought that coin and tokens are same. But I know what is coin and what is token. And what is the difference between of them.

[rekter 8129]

On 11/12/2019 at 6:50 PM, phabulu said:

There are many tokens developed on top of the Ethereum platform like EOS, VeChain, OmiseGO, Binance Coin, Augur, Status and many more. Just go to the Coinmarketcap website and click on the “Tokens” tab.

I would like to add that those were just placeholder tokens for the ico distribution and development phase. After that most of them got or will get their own blockchain platform.

Edited January 2, 2020 by rekter
grammar

[Rasheed 76]

coins are just method of payment while and  Tokens may present a company's share,

give access to product or service and perform many other functions.

[rekter 8129]

4 minutes ago, Rasheed said:

coins are just method of payment while and  Tokens may present a company's share,

give access to product or service and perform many other functions.

It isn't so simple. Coins are platforms that can be built into. Tokens are representing ether collectables, utility tokens, placeholder tokens or securities, commodities or currencies or vaporware. Almost in any case they are not representing a company's share or a stock. Not yet anyway.

[scorpiali 5626]

Nice and simple way to explain the difference between token and coin it's very necessary to know that special for the newbie in Crypto currency world in this forum , thanks for the job

[Dolpharius 675]

Thanks to the cap for the information, it is really useful and I would place it in the department for discussing newcomers, there it belongs, I often meet a question and a statement about what is a coin, token and cryptocurrency - their difference.

[McCree 713]

Most tokens don't see lots of user adoption and so they continue to live on a blockchain's mainnet. The thing about becoming independent is that if there is not enough enthusiasm in your new project it will become worthless.

[vynz 540]

Coins that are also often called altcoins or alternative cryptocurrency coins are digital money, created using encryption techniques, that store value over time. Basically, it is a digital equivalent of money. Tokens are digital assets, issued by the project, which can be used as a method of payment inside the project’s ecosystem, performing similar functions with coins, but the main difference is that it also gives the holder a right to participate in the network.

[Ayush Singh 1175]

Its an useful and very important informations for all the beginners who don't know the difference between tokens and coins you can betterly know the uses about tokens and coins and its important differences according to the users of this field.

[Ahillya 62]

Coins are the actual money that has the real value in the market and hence they have to be accumulated first in ur wallet. The tokens don't have the real value but they can have the value if they get sponsor from the big exchanges.

[Suciu 6]

Good explanation it helps me as a beginner to know the difference between the coins and tokens, very good post. Thanks!

[newcrypto363 19]

Before I entered this forum, I knew a little about the difference between tokens and coins. Which is just the difference between networks. For example tokens use ethereum or tron networks and coins have their own networks.

[Druddin 4]

express gratitude you consequently greatly for this information, it will be fantastically nifty for the beginners! at an earlier time he was confused, and talked to introduce somebody to an area as an alternative of "coin" memento , confusing them, and at this time are the errors from happening. This is positively not a categorize , but I contemplate population analysis this subject matter will not be to buy with it

[Druddin 4]

Indeed, the the largest part constructive in order for beginners, for me this article was in addition useful, even though I possess a more readily extensive time in cryptocurrency.
 

[makqwer 5]

Only now I know what these symbols will be from now on I am reassuring about these currencies These symbols can be profit through in short periods ...

[makqwer 5]

This explanation is good and great for beginners, so I think its right and appropriate place in the educational section for beginners, and this will be good

[MrGeany 297]

well thanks for sharing such and good information ans yes i want to add about coins. coins are mined and miners mine the coin and tokens ar enot mined as far as iknow. so it is a very good difference as i know.

[Maroua 1159]

Your post indicates a lot of experience. You wrote detailed words about Bitcoin, and this is great. I cannot respond to many words on your post because I do not understand some things because I am new to this forum. Thank you for this useful post.

[Ms.o 3322]

Coins are just method of payment while tokens may present a company’s share, give access to product or service and perform many other functions. Coins are currencies that can be used for buying and selling things. You can buy a token with a coin, but not vice versa. Coin operates independently, while token has a specific use in the project’s ecosystem.

[Calvinpriva 17296]

Well explained, many of we didn't their different that much i just thought tokens are something like rewards which you will be given for some tasks and its not require blockchain but coins are require blockchain.

[bliznec 22268]

On the Ethereum cryptocurrency platform, you can observe many tokens. I have already collected more than 300 tokens from various bounty platforms.