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Coin and token are the terms that are commonly used in crypto sphere. While they are similar to some extent, they also have significant differences. In this article, we will be explaining what they are along with their similarities and differences.
Both coins and tokens are a variety of cryptocurrencies. Thus, they both employ blockchain technology to verify transactions and both of their prices can increase and decrease.
The blockchain level is where the main distinction between a coin and a token exist. A coin is the standard cryptocurrency of a blockchain. For instance, the Ethereum blockchain uses Ether (ETH) as its default currency.
A cryptocurrency is referred to as a token if it utilises or borrows another blockchain's network. Tokens are different from native cryptocurrencies in terms of their price, name, and function. Transactions made with tokens are eventually settled on the blockchain that they use.
Currently, Ethereum is the most widely used blockchain for tokens because of its programmable smart contracts. With these smart contracts, developers can program their tokens to execute certain parts of the contract when certain conditions are met. At maxxer, our $MXXR token also utilises the Ethereum blockchain for some of these reasons.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
Coin and token are the terms that are commonly used in crypto sphere. While they are similar to some extent, they also have significant differences. In this article, we will be explaining what they are along with their similarities and differences.
Both coins and tokens are a variety of cryptocurrencies. Thus, they both employ blockchain technology to verify transactions and both of their prices can increase and decrease.
The blockchain level is where the main distinction between a coin and a token exist. A coin is the standard cryptocurrency of a blockchain. For instance, the Ethereum blockchain uses Ether (ETH) as its default currency.
A cryptocurrency is referred to as a token if it utilises or borrows another blockchain's network. Tokens are different from native cryptocurrencies in terms of their price, name, and function. Transactions made with tokens are eventually settled on the blockchain that they use.
Currently, Ethereum is the most widely used blockchain for tokens because of its programmable smart contracts. With these smart contracts, developers can program their tokens to execute certain parts of the contract when certain conditions are met. At maxxer, our $MXXR token also utilises the Ethereum blockchain for some of these reasons.
*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.
