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Coins vs. Tokens: What is the difference?

Coins vs. Tokens: What is the difference?

What Does A Coin Mean?

  • Ethereum: relies on the ether blockchain.
  • Litecoin: relies on the lite blockchain.
  • Bitcoin: relies on the bitcoin blockchain.
  • NEO: relies on the NEO blockchain.

What Does A Token Mean?

Difference Between Coins And Tokens:

Various Types Of Tokens:

  • Security tokens — These tokens are responsible for representing shares of a corporation while also using all the perks of the blockchain. OldFi securities depend on tokens. These tokens are also used to electronically store and authenticate public information.
  • Asset tokens — These are the real deal. Asset tokens are backed up by physically existing assets like diamonds, gold, and even real estate. They are rooted to be the future of financial transactions of the digital capital market.
  • Stablecoins — These are a representation of stable currencies in comparison to cryptocurrencies. Most of these stablecoins include physical currencies like dollars and pounds. They are backed by a reserved asset, and they derive their market value from external references.
  • Non-fungible tokens (NFTs) — Non-fungible tokens are a representation of unique items like art or virtual game items that can be bought only virtually. Like a virtual football game or a real estate game. Regular tokens can usually be split into smaller sections but NFTs, on the other hand, cannot be split up. NFTs can be purchased through different means, and many users use a WAX account to buy and hold NFTs. Read more about non-fungible tokens in our article.

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