Crypto Coin vs Crypto Token – What Are the Key Differences

Most people think crypto coins and crypto tokens are the same things. But that’s not true at all. Both have a huge difference in definition, use, and value. Some of the key visions of both are the same, but they are different. And let’s see those differences:

What Is Crypto Coin?

Crypto coins are those digital coins that have their own blockchain platform. It doesn’t matter which consensus mechanism they use. But crypto coins must have their own blockchain platform. For example, Bitcoin blockchain is BTC, Cardano blockchain is ADA, and Ethereum blockchain is ETH. Now, crypto coins are created so that they can add value and can be used as a financial instrument like flat currency. That’s why crypto coins are also called cryptocurrencies. These are generated and earned via Proof-of-work mining or verifying the transaction with Proof-of-stake.

What Are the Uses of Crypto coins?

The first created crypto coin is the bitcoin. It was created for the decentralization of traditional money. Now, all crypto coins are created for almost the same reasons. For example, to be used as flat currencies, storing value, exchanging with other currencies, exchanging goods and services, and others as well. At the same time, crypto coins also have some additional benefits as well. Like crypto coins are highly fast when it comes to transactions. I mean, you will need a good time to transfer funds to another country. But you can transfer a huge amount of crypto faster than ever. At the same time, the transaction fees are way less than you can think. Besides, crypto coins are not controlled by any government. And your account and transactions remain private as well.

Which Are the Most Popular Crypto Coins?

Let’s take a look at which crypto coins are top on the list:

Bitcoin (BTC)

It is the first ever created crypto coin. It was launched in early 2009 by Satoshi Nakamoto. Since it is the first one, that’s why it is the most valuable one. And its current market capitalization is $377.34 billion.

Ethereum (ETH)

It is not just a great crypto coin. It has made the crypto revolution happen. It has many smart contracts and applications. That is why it is the second most valuable crypto coin. At the same time, it is the home of many NFTs as well. The total market capital of Ethereum is $190.246 billion.

Cardano (ADA)

It is an open-source crypto coin that is decentralized. And it is the first crypto coin to run on the PoS consensus mechanism. It is considered an eco-friendly cryptocurrency. Its total market Capital is $17,230,921,670.

What Are Crypto Tokens?

It is also considered a cryptocurrency. But tokens are not crypto coins. That is because the main difference that they have with the coin is the blockchain platform. However, crypto coins have their own blockchain platforms. But crypto tokens don’t have their own blockchain platform. Instead, tokens use the existing blockchain platform. More specifically, crypto tokens are vouchers and coupons. And crypto coins are like dollars.

What are the Uses of Crypto Tokens?

Crypto tokens are mainly used in various blockchain projects. And these can’t be mined. Instead, these are disturbed by the project developers. But if tokens go to the reach of buyers, then those can be used in countless beneficial ways.

Now, some of the most popular examples of crypto tokens are Filecoin (FIL), Arweave (AR), Smooth Love Potions (SLP), Cronos (CRO), etc.

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