What is the difference between cryptocurrency (coin) and token?

10 000 question challengeCategory: Profits (trading, ICO, mining)What is the difference between cryptocurrency (coin) and token?
HowToToken Team Staff asked 3 years ago
1 Answers
Best Answer
anonymous answered 3 years ago

When one person begins to study about the world of cryptocurrency, it is necessary and obligatory to handle a certain type of terminology. The terms “token” and “coin” are usually confusing for new and some advanced people in this field.
Simplistically we can say that, the coins operates independently (like Bitcoin), but the tokens are dependent on the platform that provides the coins to able to be commercialized (like Tether). Although both have a quantifiable value, they have a slight difference in their functions: the coins are marketed like any other currency (like the USD); whereas tokens are virtual assets, in other words: actions, rewards, etc. Basically tokens are abstractions of value,  related to specific platforms: A classic example is to buy chips (tokens) for a game with your money (coins), and those chips only have value and sense in the game economy.
source: https://www.cryptoniam.com/what-is-the-difference-between-cryptocurrency-coin-and-tokens/