THECRYPTO.WATCH – For those of you who are new to the world of cryptocurrencies, you may not be able to make the difference between coins and tokens clearly. However, if you want to invest, then you really need to know the difference.
About Coins and Tokens Differences
What are the differences between coins and tokens? Maybe that’s what crossed your mind. Check out the following explanation before starting to invest, okay.
Coins in crypto are identified in digital assets created on its own blockchain network. Digital assets are also referred to as assets native which are likened to natives on the network. Like Bitcoin on its own network, and Ether on the Ethereum network.
Uses of Coins
In addition to functioning as digital assets, coins have two other functions, namely:
Some cryptocurrency players consider some crypto assets as investment assets like digital gold. As a result, the value of Bitcoin can appreciate in the future and can be considered as a guard of wealth from the scourge of inflation.
Guard of the Blockchain System
The cryptocurrency community utilizes coins as the custodian of the system on the blockchain network.
Meanwhile, tokens are digital assets, which are developed by riding on blockchain networks that other party’s own. Tokens are likened to “residents” there. Usually, these tokens are created on the Ethereum blockchain system.
Use of Tokens.
The token also has a value transfer function for digital assets. The advantage of tokens is that they can be used as a medium of payment. For example: