What is a crypto token?
Crypto Token is not at all like Crypto Coin as it does not have its Blockchain and it is built on the Blockchain of Crypto Coin. The same crypto token is used as an asset. Today there are more than 6000 crypto tokens which are hosted by blockchain technology. If seen, Crypto Coin and Crypto Token are fundamentally the same i.e. Crypto Coin and Crypto Token have a lot in common but both of them are also somewhat distinctions from each other. So let’s try to understand the main difference between both Crypto Coin and Crypto Token, and then let’s understand the distinctions among both Crypto Coin and Crypto Token.
What is a crypto coin?
We are talking about crypto coin here which is based on blockchain technology by which all transactions are accounted and this includes crypto coins, like Ethereum runs its coin and that is Ether, the same Bitcoin on the other hand is transacted with Bitcoin or Ethereum their receipt goes to their blockchain. Talking Crypto Coins is a digital currency that works as a currency. If you want, you can easily sell or buy anything by going to the exchange. Bitcoin is considered to be the first popular crypto coin because it contains all the qualities that everyone wants in a coin.
Distinctions among crypto tokens and crypto coins
Crypto coins and crypto tokens both are also the same because both have different things. When it comes to crypto coins, they come in different categories than crypto tokens but when it comes to crypto tokens, they are not in the category of crypto coins. The most surprising thing investors do not know is whether they are investing their money in crypto coins or crypto tokens. Thousands of crypto tokens are being hosted with the same crypto coin blockchain. When you exchange a token on a crypto platform, it is directly received from person to person. The balance remaining in an exchange transaction is reversed as in a bank account transaction. When this is done by you, at that time you will see that there will be a change in the balance in the bank account.
Crypto coin vs crypto token
Crypto Coin works only on Blockchain but when it comes to Crypto Token, there is no need for Blockchain, Crypto Coin is built on Blockchain. Experts have found out that if you want to buy something then you can use a crypto coin which is a better option. On the other hand if you want to get another kind of service you can use a crypto token which is a good option for this. You can use coins as your real money and on the other hand tokens are used as assets. In Crypto Coins, Bitcoin, Binance Coin, Ethereum, Ripple are included while on the other hand, in Crypto Tokens, Polkadot, Shiba Inu, REN, ENJIN have been included. If you are ready to buy crypto to invest then the best option for you would be a crypto token rather than a crypto coin.
Conclusion
Hopefully, after reading this article, you must have understood the main distinction between Crypto Coin and a Crypto Token. Hope you liked this information.
