what is the difference between a coin and a token | Coin vs Token

what's the difference between a Coin and a token in crypto ? Coin vs Token

Let us take a brief look into that and see there difference and how they effect each other or not

Let's get started by knowing their definitions

What is a coin ?

The term coin refers to crypto currencies build within or on their own #Blockchain netwrork. 

For example :- 

#Bitcoin is the world's largest cryptocurrency, which is a coin and has it's own blockchain 

So if you observe the BitCoin address of each individual is unique but starts with

bcxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Some other very popular coins like Ethereum, Binance and polkadot etc have their own Blockchain, These coins differ in size, miners, and performances or utilities but they all operate in those own Blockchains

• Digital coins are used just like physical coins, to transfer, sell, buying esserts with  value around our financial ecosystem 

Example :- if you have a blue 🔵 coin which can minted as any token but it doesn't change the fact that that's a coin

What is a token ?

The term token refers to the cryptocurrencies that doesn't have their  own Blockchain. So, instead of operating in their blockchain, they are built on an already existing blockchain 

• These digital tokens can be made by any of the existing DeFi blockchain like Ethereum, polkadot, tron etc

• There are tons of different types of tokens such as security, utility, assert, NFTs and payment tokens. Stablecoins such as Tether also considered as token also

So what are the differences in them

Main Difference

👉The first and foremost distinct difference of coins and tokens, is that coins have their own Blockchain while tokens use another existing blockchain

👉Another important difference is that investors should know that coins are mostly used for processing the payments, while tokens are suitable for multiple needs also

👉Creating a coin is also so much difficult due to the fact that the creator has to develop a new blockchain network to run on it's own, while the creating a token is so easy compared to coin

👉Coins are mined everyday but tokens are minted max or released with the liquidity locked 🔒 plan or so keep that in mind which can effect the price of crypto

What should you invest in 

Easy what you like to invest, every investor has their own views, own investment or needs and goals in investing in cryptocurrency don't believe in something you don't know or understand

If  your somebody who is looking to invest in asserts That are used for payments , then coins are the best 

If your interested in investing  in something more unique and with of utility like stable coins (of course crypto can't be stable though), asserts, lauchpads, meme coins 🤣, then tokens are more likely

As I am saying this is not an financial advice

Many investors are interested in investing in both of that

My feed

As you can see both coins and tokens are unique in their own way which influence you as an investor , so it is important for investors to understand the difference between coins and tokens

Also most importantly always remeber to do your own research which investing in cryptocurrency don't listen to people who have more followers or a celeb, 

#CoinvsToken #Tokenvscoin #Cryptocurrency #cryptogeek #wazirx #wazirxwarriors #Bharatwantscrypto

#Bitcoin #passiveincome #DYOR

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