TOKENS & COINS —
WHAT'S THE DIFFERENCE?
Investing in crypto assets can be a little hairy for newcomers. Many terms can be confused due to their similarity. In today's post we will figure out the differences between crypto tokens and crypto coins.
Coins are intended to replace traditional fiat currencies. The functionality they provide includes storing value, exchanging for other currencies, paying for goods and services, transferring coins to others.
Crypto tokens can be bought, sold, and traded like coins, but they aren’t used as a medium of exchange. A cryptocurrency token is like a coupon or a voucher, while a cryptocurrency coin is like a dollar or a cent.
Token classifications are based on the various characteristics of the tokens, which we will discuss in an upcoming post.
The use case for blockchain technology and digital coins and tokens will continue to expand. As it does so, follow us for more crypto-basic knowledge.
