What are the differences between Tokens and Coins?
Cryptocurrencies are taking the financial world by storm as more and more Cryptocurrencies are being introduced in the field. Investors are trying their hands-on to the best of them to invest their money in the virtual or digital currencies.
There are many terms in the field which need to understand if you are planning to invest in the same. The most common terms are Tokens and Coins. Here we will explain these terms in detail so that you can have better knowledge about them before stepping into the Crypto-world.
Cryptocurrencies are managed by advanced technology- Blockchain. Blockchain Technology is hard to understand but it is important to understand for everyone who is attracting towards the digital currencies.
Difference Between Tokens and Coins
Tokens and Coins are nothing but forms of Cryptocurrencies. In fact, they are Cryptocurrencies in the real world. Coins are different in nature, however, there is nothing different between their functionality in the field. Cryptocurrencies are categorized into Tokens and Coins. Let’s get more information about these currencies!
Tokens are nothing but a set of the utility of the virtual assets. Tokens reside on the top of the Virtual Currencies platform I.e. Blockchain. Tokens are combined assets of the users along with the Cryptocurrencies.
Things which can be traded by the user can come under this term including the Cryptocurrencies or we can say Virtual Currencies.
Unlike Altcoins, creating tokens of the assets are way easier as it doesn’t require any changes in the codes. For modifying the nature of the Tokens, there is no technical skill required. Additionally, you don’t even need to create a Blockchain for the same.
To create a Token, all you have to do is just following the simple template or platform which can guide you in creating Tokens on your own without any technical skills.
Thankfully, there are platforms such as Wave Platform, Ethereum platform who allows users to create their own Tokens. You can make use of such platforms to create and develop Tokens. There is a special platform available to get started with the trading of Tokens. Head over to Tokens.net for more information about the trading of Tokens.
These platforms are using programmable codes and other algorithms which executes the required codes itself. You don’t need to work on the code side, all you have to do is just follow the simple steps and you will be done. The codes and functions on these platforms don’t require third-party developer or exchanger, everything is managed by the system automatically.
If we talk about the distribution process, Tokens are distributed to the public through ICO I.e. Initial Coin Offering which comes under the Government’s policies.
Coins are also known as Altcoins I.e. Alternative Cryptocurrency Coins in terms of Crypto-market. Coins are used for interchanging of the currencies. Altcoins are defined as the interchangeable coins to Bitcoin.
There are different types of Coins available on the market and most of them are developed with Bitcoin Open Source platform. All of the Altcoins are based on Bitcoins. Altcoins are special Cryptos with a set of different features and functions, unlike the Bitcoin.
If we talk about the Crypto-market, currently there are many types of Altcoins available which can be used to exchange the Cryptocurrencies. Altcoins such as Litecoin, Namecoin, Peercoin, Dogecoin and many more are there on the market. All these Altcoins are derived from Bitcoin’s Open Source platform so they are indirectly related with the Bitcoin currency.
Now, there are many other Altcoins which are derived or developed from their own platform. They have created their own Blockchain platform and are different in nature compared to the ones developed with Bitcoin’s Open Source platform. Ethereum, Neo, Waves, Omni, Ripple and many other more Coins are there in the market as independent Cryptocurrencies in the form of Coins.
All these Altcoins perform as independent Cryptocurrency with a private Blockchain. They need a medium or platform to get exchanged with other Cryptocurrencies.
Overall, both these terms are related to Cryptocurrencies and Virtual Currencies. The only major difference between them is their structure. Altcoins are completely separate Cryptos with their own Blockchain. Tokens are preferred by investors as they don’t require any internal changes in the codes.