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.
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.