✍Aenco Academy
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✍Aenco Academy

✍Aenco Academy #24 Coin vs Token: What’s the difference?

𝐸𝒹𝓊𝒸𝒶𝓉𝒾𝑜𝓃𝒶𝓁 𝑒𝓈𝓈𝒶𝓎𝓈 𝓈𝓊𝓈𝓉𝒶𝒾𝓃𝒾𝓃𝑔 𝓉𝒽𝑒 𝒜𝑒𝓃𝒸𝑜 𝒞𝑜𝓂𝓂𝓊𝓃𝒾𝓉𝓎 𝒶𝓃𝒹 𝐸𝒸𝑜𝓈𝓎𝓈𝓉𝑒𝓂

Coins and tokens can be confusing topics to people who are new to cryptocurrencies. Some may confuse both terms with one another. In fact, “coins” and “tokens” are two very different things. Join us this week as we venture on the topic ‘Coin vs Token — What’s the difference?’ at Aenco Academy #24.

𝓣𝓱𝓮𝓸𝓻𝔂

1. What is a coin?

A coin is an asset that is native to its own blockchain. All digital coins exist as data on an enormous global database, which is called the blockchain. A blockchain keeps record of all the transactions and is verified by computers across the globe. Transactions of digital coins can be made between users without physical coins. These digital coins can be used to transfer money, meaning that users can give and receive value during transactions. There is also a store of value which can be saved and later exchanged for something useful. Moreover, it can be used as a unit of an account, you can purchase goods or services with them. In addition to that, some of them have more features than just being a digital form of money. For instance, Ether (ETH) is used to fuel transactions on the Ethereum network. NEO (NEO) is staked in a wallet to earn a dividend. Acquiring enough Dash (DASH) gives users the right to vote on important decisions for the Dash network.

2. What is a token?

Tokens are created on existing blockchains, they are given out through Initial Coin Offering, also known as ICO, it is very similar to a stock offering. They can be seen as value tokens, such as Bitcoins, security tokens which are used to enhance the security of your account, or utility tokens which has a specific usage. Tokens represent value but they are not in themselves of value. Most tokens are used with decentralized applications and operate on top of a blockchain that acts as a tool for the creation and execution of decentralized apps and smart contracts. Tokens are not so much meant to be used as money as they are used to perform different functions. They can be a type of encryption, which are the long lines of numbers and letters representing the crypto used in a transaction, such as a bill payment or transfer. Lastly, they are also widely used to fundraise for crowd sales.

𝓒𝓵𝓸𝓼𝓲𝓷𝓰 𝓣𝓱𝓸𝓾𝓰𝓱𝓽𝓼

We know our community has high hopes on the updates being made on the AENX v2.0, and we are working tirelessly to ensure future upgrades can be launched timely and suiting the community’s expectation. As we are launching our AENX v2.0 version, we encouraged our potential users to complete the KYC forms not just to enhance account verification, but to enjoy maximum benefits and discounts, too! Stay tuned for more updates, and we will be back next week for a new topic!

𝓡𝓮𝓯𝓮𝓻𝓮𝓷𝓬𝓮

https://www.bitdegree.org/crypto/tutorials/token-vs-coin

https://www.sofi.com/learn/content/understanding-the-different-types-of-cryptocurrency/?__cf_chl_jschl_tk__=8e0c5637f7d77a70c2b62faa244b84e882d8f062-1601966795-0-AY3LJ6kQK10yCSeNDwGKckgRsxkPZimMa73fUsWnCiHwukvFgCaERCYyAJVytSRvrGoZWVzU62QBApTEekpTcEz_CWsuX3D0m7dFYxrrUITBmaFO_283b3BmxOsNS0SBoqpvX4FqJyOHJv7oZPLZ562ivB07Ro_LXwUENuEAnPu61nGkxVleF4aC5CDCULaQldjef18vJiLymIDneTPuLKQS72RKW7xhu1eCEoRFaKu2kjjsGmvWqubdC5ZNAiIoGlqLFiwaIAr0HZg2FuybCkliZ3a2c8tL14RyjfYZGCggP3oVuatvPCNolJdw4byZhMYYN8hUHPhAjIV1ThBo6slER4WAEo6oYQ3nzUnjRCgUl067JeWMnCOGBe6pn7dNPhCWMh_zJ3qIBX_-bq9JadcCfsy4ZI7imfz1p2tZP4Nd

https://www.investopedia.com/terms/c/crypto-token.asp

𝓕𝓲𝓷𝓭 𝓐𝓮𝓷𝓬𝓸:

✔𝘛𝘦𝘭𝘦𝘨𝘳𝘢𝘮: 𝘵.𝘮𝘦/𝘈𝘦𝘯𝘤𝘰

✔𝘔𝘦𝘥𝘪𝘶𝘮: 𝘮𝘦𝘥𝘪𝘶𝘮.𝘤𝘰𝘮/@𝘢𝘦𝘯𝘤𝘰𝘪𝘯/

✔ 𝘐𝘯𝘴𝘵𝘢𝘨𝘳𝘢𝘮: 𝘪𝘯𝘴𝘵𝘢𝘨𝘳𝘢𝘮.𝘤𝘰𝘮/𝘢𝘦𝘯𝘤𝘰𝘪𝘯/

✔𝘓𝘪𝘯𝘬𝘦𝘥𝘐𝘯: 𝘭𝘪𝘯𝘬𝘦𝘥𝘪𝘯.𝘤𝘰𝘮/𝘤𝘰𝘮𝘱𝘢𝘯𝘺/𝘈𝘦𝘯𝘤𝘰

✔𝘛𝘸𝘪𝘵𝘵𝘦𝘳: 𝘵𝘸𝘪𝘵𝘵𝘦𝘳.𝘤𝘰𝘮/𝘈𝘦𝘯𝘤𝘰𝘪𝘯

✔𝘍𝘢𝘤𝘦𝘣𝘰𝘰𝘬: 𝘧𝘢𝘤𝘦𝘣𝘰𝘰𝘬.𝘤𝘰𝘮/𝘈𝘦𝘯𝘤𝘰𝘪𝘯

✔𝘋𝘪𝘴𝘤𝘰𝘳𝘥: 𝘥𝘪𝘴𝘤𝘰𝘳𝘥.𝘨𝘨/𝘕𝘟𝘱𝘍𝘤𝘒𝘘

✔𝘠𝘰𝘶𝘛𝘶𝘣𝘦: 𝘠𝘰𝘶𝘛𝘶𝘣𝘦.𝘈𝘦𝘯𝘤𝘰𝘪𝘯.𝘤𝘰𝘮

✔𝘝𝘪𝘣𝘦𝘳: 𝘈𝘦𝘯𝘤𝘰 𝘝𝘪𝘦𝘵𝘯𝘢𝘮

All Rights Reserved. 2020. Aenco Limited consists of a team with strong corporate management experience from global investment banks and financial institutions, as well as blockchain technologists and enthusiasts. Aenco believes that an end-to-end solution platform is essential to fully support fintech innovation. Aenco focuses on real life challenges of digital financing for both fintech projects and the investing community. This is the Aenco Ecosystem.

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