Skip to main content

Understanding Tokens And Coins

WHAT ARE COINS AND TOKENS




In cryptocurrency, coins are native to their own blockchain, Which are often used as money. whilst tokens have been built on another blockchain like Ethereum or waves.

Entering the cryptocurrency market can be complicated, hearing about bitcoin and a thousand other coins that exist could also be a strong bone to swallow at a time. Thus in other to have a smooth ride in the space, first identify the difference between a coin and a token.

what is a coin?: Coins refer to any cryptocurrency that has an independent blockchain-like bitcoin. These cryptocurrencies are built from the scratch. Bitcoin exists as a censorship-resistant store of value, and medium of exchange that has a secure, fixed monetary policy. Making bitcoin the most liquid cryptocurrency in the market and has the highest market cap in the cryptocurrency sector.

Ethereum is another example of a coin, ETH is the native coin of the Ethereum ecosystem and smart contract platform for creating general-purpose computer programs that run on a decentralized blockchain network . Ethereum focuses more on arbitrary program data that covers anything from, games to social media, to sending and receiving, managing assets interacting with decentralized applications and paying gas fees.

What are Tokens?: Tokens are a type of cryptocurrency that represent an asset or a specific use case and resides on a blockchain. Tokens are simply an outlay of boarder smart contracts platforms like ETHEREUM, NEM, WAVES. this platforms enables users to issue, create and manage tokens that area derivates of a primary blockchain.

Tokens cover a unique percent of the cryptocurrency market where they function as "Utility" Tokens within an application's ecosystem for incentivizing certain behavior, engagement or paying fees. For instance, the famous ERC-20 token Dai is part of the Maker DAO app on Ethereum. Dai is designed to be stable and giving users access to credit instruments like lending/borrowing etc.
With all that's been said, tokens exist as application specific tokens with a coins broader blockchain network . The cryptocurrency market could be challenging, but understanding the basics and differentiating various types of cryptocurrencies can help you manage your risk and make better decisions in the space.


Comments

Post a Comment

Popular posts from this blog

  Pick a niche The Blockchain and Crypto space is large and full of opportunities. Most people limit the industry to just a place to trade and make quick cash little do they know that you can actually build a career and achieve much more. There's a lot of skills required in blockchain technology. Firstly, you can become a trader, a day time trader or night trade it all depends on your schedule. You can actually make 10 to 20% of your capital daily or even more depending on the volume of your capital and trading strategy. you can become an investor who spots good coins and invests in a project you believe will do well, you can hodl, meaning you can buy and hold for short or long term period.  OTC trading is actually underrated, you can become an over the counter trader by just buying and selling cryptocurrency through the P2P Platforms or escrow groups, there's a lot of money to be made here if you move volumes on a daily. You can become an expert in technical analysis and give
WHAT YOU NEED TO KNOW ABOUT  NON FUNGIBLE TOKENS NFTs (or "non-fungible tokens") are a kind of digital asset with a unique kind of token-unlike other assets like bitcoin and dollar bills which have a particular and fixed amount that is accepted by all, NTFS have a unique price for every token. Every NFT is Unique, they can be used to authenticate ownership of digital assets like musical records, artwork, virtual real estates and pets. NFTs could be likened to a kind of certificate of authenticity for digital artefacts. They're are actually been used to sell a huge range of collectables currently including: *A tweet by Dallas Mavericks owner and entrepreneur Mark Cuban. *Video art by Grimes *The Original "Nyan cat" meme *Virtual real Estate in a place called Decentraland  and others...   As other digital assets like Bitcoin and other cryptos has grown in popularity over the years, NFTs have also soared — growing to an estimated $338 million in 2020. Each NFT is s

Differentiating Scam Crypto Projects And Legit Projects

Since Bitcoin became mainstream, we have seen countless scam schemes that claim to be crypto projects but are just scam projects that seek to cart away with investors money. a whole lot of them have succeed and are still succeeding in doing this. the reason why they keep getting away with this schemes, is that a lot of crypto enthusiasts and investors don't have a proper knowledge of how the cryptocurrency space works. This is the reason why we have decided to put some contents together both on our YouTube channel and podcast to give investors and especially newbies the heads up to figure out when scam projects come knocking. The crypto space is in its early stage with peculiar opportunities as well as challenges. There are scammers in probably every walk of life, seeking and exploring new ways and opportunities to extort their victims. below we will discuss give key points to figure out a scam or ponzi project. Five ways to know scam or crypto projects Important to