Beginners - Explaining the difference between coins and tokens

[phabulu 0]

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

[Brushless4500KV 4214]

There are lots of terms and jargons in crypto world that confuses most people.

I think in simple terms:

 

Coins are used to transfer money, to store value and is a unit of account. A coin is a unit of value that operates on its own blockchain, independently of any other platform. Tokens are used to represent digital assets, a type of program or entity. Tokens have more functionality than coins and they give their holders the ability to take part in some kind of activity.

The main difference between coins and tokens are their structures. coins can be used as currency units and have their own Blockchains. Tokens are located on a Blockchain for use in decentralized applications.

 

Sources for more info:

https://www.bitdegree.org/tutorials/token-vs-coin/#Token_vs_Coin_What_is_a_Coin

 

https://cryptoadventure.org/understanding-the-difference-between-coins-and-tokens/

 

https://www.finder.com/cryptocurrency-coins-vs-tokens

 

 

[TimopheyKa 3900]

Thank you so much for this information, it will be very useful for the beginners! Earlier he was confused, and talked to people instead of "coin" token , misleading them, and here are the errors from happening. This is certainly not a class , but I think people reading this topic will not be to deal with it

[yifnt 666]

Just add a little, if their project has been successful and they will usually switch networks with their own network. They will leave their tokens and swap into new coins that stand on their own networks.

[Hatred 1388]

On 11/13/2019 at 12:50 AM, 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

This is a very useful post. I now know what is the difference between those two. Thank you for the information you share to us.

[Hatred 1388]

On 11/14/2019 at 12:36 AM, Brushless4500KV said:

There are lots of terms and jargons in crypto world that confuses most people.

I think in simple terms:

 

Coins are used to transfer money, to store value and is a unit of account. A coin is a unit of value that operates on its own blockchain, independently of any other platform. Tokens are used to represent digital assets, a type of program or entity. Tokens have more functionality than coins and they give their holders the ability to take part in some kind of activity.

The main difference between coins and tokens are their structures. coins can be used as currency units and have their own Blockchains. Tokens are located on a Blockchain for use in decentralized applications.

 

Sources for more info:

https://www.bitdegree.org/tutorials/token-vs-coin/#Token_vs_Coin_What_is_a_Coin

 

https://cryptoadventure.org/understanding-the-difference-between-coins-and-tokens/

 

https://www.finder.com/cryptocurrency-coins-vs-tokens

 

 

Yes, that's true. There are lot of terms that the beginners like me need to study and understand more. Anyway, thank you for sharing your knowledge to us. Now we can differentiate what is coin and what is token.

[Muphin 459]

Okay, so I read some of the replies in this topic but I still do not get it. And I did some research and the only I understand is that coins are just coins, the role of a real coin or money. And as for tokens, it has many functionality(?). I don't know what functionalities, though. And if I understand it correctly, coin is used for transaction while token cannot be used for transaction. 

 

Please correct me if I'm wrong.

[Tarkin4ik 3160]

Indeed, the most useful information for beginners, for me this article was also useful, although I have a rather long time in cryptocurrency.

[palalu 512]

thank you for giving quite complete info about the difference between coins and tokens, but I think this topic is more suitable for "coin/token talk" category than "tutorial category".

[myaccount1 584]

Thanks for explaining about the difference between token and coins.

[crypto1 62]

As a new forum members I was unable to understand the difference between token and coin concepts in crypto-currencies. Very helpful thread for new users/forum members.

[CryptoDJ 712]

Here is such authors need lot more on form, after all such people indeed help thus newcomers as and I in complex terminology. I seriously thought up to this point that coins and tokens are one, and that people just call them as they would be comfortable.

[tabul8tor 0]

Check out my post on this topic! https://medium.com/@tabul8/a-beginners-guide-to-cryptocurrencies-c5a36e3b5f4f

[I-KUN 422]

here the easy explanation for a newcomers . token is smart contract. most of them are ethereum based. so you can use one ethereum wallet to get all erc20 token. but coin is different, it has a unique wallet address. so you should send your coin to particular wallet in every coin.

[dmnqe07 365]

Simply include a bit, if their undertaking has been effective and they will as a rule switch systems with their own system. They will leave their tokens and swap into new coins that remain individually arranges.

[MOProgress 363]

On 11/12/2019 at 5:50 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

Thanks for sharing this, many people do not understand the difference, so they call every cryptocurrency token and every token coin. But with this, I think many people will begin to see the difference between both of them.

[Scottsummers 347]

On 11/12/2019 at 4:50 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

Nice post. I find it really frustrating now how everything is given the label crypto or coin when they are far from it. There are so many differences between all the new coins and tokens. This pretty much explains it how I wish I could when I get annoyed at people who don't get it. I saw you post lots at the beginning but not for a while. Good to cross paths again. Yourw one of the few that posts a lot and also talks a lot of sense. 

[Obydullah 65]

Hello brother i also working with crypto currency.I work buy coin and sell it just onl traing and some airdrop joing but i dont knowledge have to token and coin.But you shareing differnt with coin and token.It is very helpfull for me and other people.Also who new at crypto currency he can knowledge from your this topic.Now i am intersted token more than coin.

[Crypto123 0]

The main difference between a coin and a token is that the coin is a standalone It has a it's blockchain network and a special wallet. The coin can be sent and received via the blockchain and its own wallet.The token is a non-independent currency, it belongs to another blockchain currency such as etherium and all its transactions are done via this blockchain so you need an etherium commission when sending or receiving.

[Akbor 1042]

This is very much useful to me that before I knew that coin has their own block chain and token use another block chain and now know what are the main difference.

[Yanadia 1517]

Good explaination now as the beginer i know what Token and coins are. Before just wondering how to see deferwnt between Token and coins . Thank you it helping me 

[Iriswolfgang 200]

thanks for enlightenment ❤️ 

[CryptoLover21 0]

35 minutes ago, Iambee said:

Coins are actually that are listed in trading but token are that which are distributed in airdrops but are not listed in the trading site so token can be coin in future after they get listed in trading site.

Yes ,Morever  Coins have their own blockchain for eg bitcoin , eth , NRG are coins , but Tokens are based on other's plateform like  DGTX is based on Eth blockchain so it it token

Edited December 24, 2019 by CryptoLover21

[Zentoly 419]

On 12/23/2019 at 10:56 AM, Mustydoo said:

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 coins, but not vice versa. 

A coin is a means of payment, while token has wider functionality. 

Yeah you are right coin is a method of payment and tokens are presenting the company's share so I think for investment a coin is very good.

[Sagor 500]

Coins are mainly using their own block chain but the tokens use others block chain to do any transaction. coins are very much trusted and secured but token use others block chain so i think the security is not like coin.