In the crypto world people refer to tokens and coins as cryptocurrencies, but if we look deeper there is of course a fundamental difference, Can you explain to me, what is the difference between tokens and coins?. If possible give examples of well-known tokens and coins.
Tokens and Coins
- Thread starter Suba
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Tokens doesn't have their own blockchain, for example Shiba Inu is still an ERC20 token, however, its own network Shibarium is under development. It will eventually become a coin. Coins has their own blockchain or network like BTC, ETH, BNB, etc.
Yeah, I think it will become a token and a coin simultaneously because there are still people who will be making transactions of Shiba Inu with binance chain network or ethereum network. A lot of cryptocurrencies fall under this category.
A token is a currency that is created on another blockchain and works within it as we could say shiba inu is an ethereum token that is currently migrating to its main network, a cryptocurrency is a currency with its own blockchain such as bitcoin, ethereum, dogecoin, cardano, solana ...
Yeah, I always like to invest in cryptocurrencies that are in several chains simultaneously. I mostly invest in binance smart chain tokens because they are cheaper than ethereum tokens.
Same. ERC20 tokens are just too expensive.l with gas fees. Binance Smart Chain tokens ha slower fees. Let's not forget tokens on Polygon Network too. The fees are really low. It's one of the nice networks out there.
Well, tokens could be a part of blockchain of a specific coin or those tokens could be a separate coin belonging to a specific centralised project. There are many different kinds of tokens.
Yeah, polygon, Solana, Optimism a very good chains with a lot of prospects and their gas fees are very low. They are just like binance smart chain network with very low fees.
Though a lot of people use the terms interchangeably but it is quite different. Token is a cryptocurrency that does not have it's own blockchain while coins have its blockchain.
Yeah, a lot of people especially people who are newbies in the cryptocurrency space usually interchange the words without minding. They really call any kind of cryptocurrency coins. I think it's lack of knowledge.
if you want to learn things about cryptocurrency and not be confused I think YouTube is a very good place for you to go to acquire such knowledge. When I started my cryptocurrency journey I actually used YouTube to get proper idea of many things.