If you have landed on this page, I assume that cryptocurrency is your forte. But, it can get confusing between terms like Cryptocurrency Coins and Token Coins. So, I am going to address this debate once for and all and clear the differences between the two. Making your ICO investment evaluation even stronger.
To understand Cryptocurrency Coins and Token Coins you would have to go back to the basics of economics.
Cryptocurrency Coins- The inside track
Talking about currency is understood that you could buy something with it. It adds value to you to have it, and each unit you can use it for various things. It can be coins, paper money etc.
But here is the fun part; the currency must have value in the market.
These coins have the same value as money does, and can be used for transactions in the blockchain system.
Cryptocurrency coins are digital currencies like Bitcoin, Litecoin. It has encryption technology on it for the currency to work. One of the significant differences between Cryptocurrency coins and token coins is that anybody could make a token coin.
But Cryptocurrency uses a special software to control its supply and inflation rate.
Token Coin – What’s in it!
A token is issued over a blockchain, that is a currency without the use of a currency. In other words, you can’t buy anything with it.
But it gains you access to the company’s future products and services. It is a form of debt that is recognized by companies who are offering the tokens and Cryptocurrencies. Token coins can also gain you, as an investor to have voting rights in important company decisions.
It is a form of utility that is issued on the token coin that enables all stakeholder to exercise their rights.
The Cryptocurrency Coin and Token Coin blurry lines
You know that Cryptocurrency coins are under the blockchain meaning they can be minded by anyone. But with Token coins, it is not possible. Token coins are mined beforehand, and it can’t be mined by someone else. Meaning you can’ transfer it because of not having a currency use.
That means it is easier to mine coins than Tokens.
Then when you think of the utility in both of these, you would see that Cryptocurrency coins are used in investing money. Because of the currency function, you can do that with cryptocurrency coins and not with Token coins.
But Token coins use another platform than Blockchain that, Tokens are about accessing benefits of the company. Cryptocurrency works like an asset with trading properties.
Have you ever played Facebook games where you get vouchers and benefit cards that allow you to encash hem for more game money to level up? Then you would know that every cryptocurrency coin has been introduced through a token till date. Tokens are used to hype and introduce a new currency.
Once you have purchased a token, you can later use them to exchange it for coins. All ICO have penetrated the market through token coins. You can check out all upcoming and live ICO’s along with ICO Calender, Token sales value and in depth details at Coin Market Plus.
In Conclusion- Cryptocurrency Coins and Token Coins
Cryptocurrency works as a misnomer in both cases. Both are currencies; just one does not have the currency value attached to it. Sharing different software and gives you a separate utility.
Now, you have all the details of Cryptocurrency Coins and Token Coins. If you have any question regarding the difference between Crypto Coin & Token Coin, suggestion or if you want to clarify anything, just let us know and we will respond you back.