Crypto coins v/s crypto tokens— important differences in the cryptocurrency market
Coins refer to any cryptocurrency that has a standalone, independent blockchain like Bitcoin.
The primary difference is that tokens tend to be dApp-specific, whereas coins are mostly used as money.
Crypto tokens are a unique outlay of broader smart contracts platforms like Ethereum that enable users to create, issue, and manage tokens that are derivatives of the primary blockchain.
While crypto coin transactions are handled by blockchain, crypto tokens rely on smart contracts.
For crypto coins only account balances change but when a token is spent, it physically moves from one place to another, for example, NFTs (Non-Fungible Tokens)
While crypto coins are essentially digital versions of money, tokens can stand for assets or deeds.
A crypto token is simpler to create than a cryptocurrency coin. To form a new crypto token, a developer can simply follow a template approach on their chosen blockchain, i.e Ethereum or the burgeoning NEO platform.
While coins can be multifunctional, tokens take more forms than just granting users access to products and services offered by a dApp.
The use of coins is primarily as a payment method for services or goods on a blockchain. Tokens are also being used as vessels that represent products and items of the physical world.
Examples of Crypto coins are Bitcoin, Ripple, Litecoin, Dogecoin, etc. Examples of Crypto tokens are Tron, Tether, Augur, Chainlink, etc.
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