Coin and Token are quite common terms in the field of Cryptocurrency (cryptocurrency), these two concepts are often associated with each other and a lot of people think they are the same, but in fact they are not, Coin and Token completely different, although there are still similarities. So what is Coin? What are tokens? How are Coins and Tokens different? This article Blog I Love Bitcoin will share with you the most basic knowledge.
I will try to explain in an easy to understand way for you to imagine, because technically speaking, it will be very difficult for newcomers to understand.
What is Coin?
Currently on the market there are about 2,000 cryptocurrencies, including both Coin and Token. Coin is also a cryptocurrency (many people are used to calling it virtual money) built and developed on the platform Blockchain separate and operate independently. Coin was born with the purpose of solving problems of payment, finance, security, application development…
Some typical Coins on the current market such as: Bitcoin, Ethereum, Cardano, Stellar, NEO, Litecoin, IOTA,..
What are tokens?
Tokens is also a cryptocurrency and is usually issued from ICO (Initial Coin Offering) projects. Tokens are developed on a certain Coin’s Blockchain platform, as we often see most of the early tokens using Ethereum’s Blockchain as standard. ERC-20. In addition, some Tokens also use the background of WAVES, NEO, ICON and even Bitcoin.
Some Token coins will have their own direction of developing their own Blockchain platform (Foundation Coin), that is, becoming a development platform for other Tokens, not all coins can be a development platform for Tokens. . In my opinion, the Token can be called a “sketch” of the Coin, when in the initial stage (ICO) it is a Token, after a while the development team builds its own Blockchain, it will become a Coin, the development process The development from Token to Coin usually takes 6 months – 1 year, usually, because each Token will have a different route, and there are Tokens that are forever just Tokens.
Some of the major tokens on the current market are: Tether, Binance Coin, OmiseGO, 0x, Zilliqa,..
How are Coins and Tokens different?
If you regularly view detailed information about coins and tokens on CoinMarketCap, you will find it very clearly classified. Coins and Tokens. But why is it so classified, where is the difference between Token and Coin?
1. Different in terms of features
- With Coin, it was created for the purpose of being used as a currency, a unit to store value and perform transactions.
- Token still has the features of a coin, and it has the additional feature of fuel used for the network operation (GAS) or an in-app exchange (CMT).
2. Technically different
- Any coin needs its own wallet platform and when sending/receiving transaction fees will be deducted directly from that coin.
- Token does not have its own wallet, but it uses the wallet platform of the platform coin and the transaction fee will be deducted from the platform coin (eg Ethereum).
To summarize, you can see the basic differences between holding a Token and Coin below this table:
| Characteristics | Coin | Tokens |
| Communication: | Own platform | Using the platform of Coin |
| Feature: | Store value | Utility |
| Wallet (Walelt): | Have your own wallet | Using the same wallet with Coin |
Where to buy and sell Tokens and Coins?
With Tokens then you can buy from ICO projects When it opens to sell Tokens, the advantage is that it can be bought cheaply, however, to make a profitable ICO investment, you must choose good and potential projects. When you buy a token from the ICO, wait for that Token to list on the exchanges so you can sell the amount of Token you bought. And if you can’t buy it since the ICO took place, you can wait when it goes on the floor and then buy.
See also: What is an ICO? Is there a scam? In 2018/2019 should invest in ICO?
Coin is different from Token, once you have become a Coin, you can only buy Coins on Cryptocurrency exchange, depending on what coin you want to buy, you can find out which exchange supports trading, then buy it through that exchange. I can introduce you to some reputable and safe exchanges that I’m using: (Click on the top of the line name to see the user manual:)
- Remitano floor: This is an exchange in Vietnam that supports you to buy and sell in VND, Remi has 4 coins that you can buy and sell: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and USDT (Tether) .
- Binance Exchange: This is an international exchange and also the largest exchange in the world, Binance supports a lot of Coins and Tokens, but of course you can’t buy with VND but must use BTC, ETH or USDT to buy.
- Huobi Exchange: Similar to Binance, also in the Top 3 largest exchanges in the world, supporting many Coins and Tokens. Huobi has an exchange called Huobi OTC in Vietnam where you can buy coins in VND. I will write the user manual later.
- CoinEx exchange: This is also an international exchange I often use, the operating model is similar to Binance and Huobi.
Store Token and Coin in which wallet is safe?
With Tokens then developed on the Blockchain platform of Coin will use that Coin’s wallet. I will list a few popular platforms:
- Tokens of Ethereum: Popular storage wallets like MyEtherWallet, ImToken, Metamask, Ledger,..
- Tokens of NEO: The most popular storage wallet is NEO Tracker
- Tokens of WAVES: The most popular storage wallet is Waves Wallet
- Besides there are some other platforms like Stellar, NEM, QTUM, you can use the same wallet
Epilogue
Ok. Here is the article “What are Coins and Tokens? What is the difference between Coin and Token? Buy, sell & store in which wallet?Hope it will bring a lot of useful information that you need. If you are new to learning about Tokens and Coins, you should refer to many other useful knowledge about the field of cryptocurrencies in the section “Cryptocurrency knowledgeOur “Leave a comment if you have a question you need me to answer. Do not forget Like, Share and 5 star review to support Blog I Love Bitcoin Please. Good luck.
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