Coins vs Tokens
Coins and tokens are two different forms of digital currency.
Coins are decentralized digital currencies that operate independently of a central authority.
Bitcoin, Litecoin, and Ethereum are examples of coins.
Tokens, on the other hand, are digital assets that are built on top of existing blockchain platforms, such as Ethereum.
Tokens are often used for specific purposes, such as access to a platform, voting rights, or the ability to trade assets.
An Initial Coin Offering (ICO) is the process of selling tokens to raise capital for a new project.
Tokens are also used to represent assets in the real world, such as real estate, commodities, or other assets.
Coins and tokens can be bought and sold on various cryptocurrency exchanges.
Coins are typically more stable in value and can be used as a form of payment.
Tokens, however, can be more volatile in value and are often used as a form of investment.
Coins have a longer history and a larger market cap, while tokens are relatively new and often have a smaller market cap.