How are tokens and coins different?

The core, major difference between crypto coins and tokens is the fact that coins have a blockchain of their own, while tokens reside on already-existing blockchains. For example, Bitcoin is a coin, since it does have a dedicated blockchain.

What are cryptocurrency coins & tokens?

Cryptocurrency coins and tokens are digital assets that operate using blockchain technology. This means transactions in the two are recorded in an electronic and distributed ledger and verified by computers across the world.

What are the most common uses for coins & tokens?

You should also know the most common uses for both coins and tokens. Coins are most often used simply as money; however, some coins do have other uses. These include being used to fuel applications, being used as a stake to validate a transaction on a network, or being used to fuel smart contract and token transactions.

Should you invest in coins or tokens?

In some ways, coins may be considered a safer and more stable investment option, as they are required for the blockchain to work. Tokens can come and go without as large of an effect on other digital currencies. However, depending on the coin and token, either could be a good choice for your trading and investing goals.