{"id":448113,"date":"2022-05-16T20:00:17","date_gmt":"2022-05-16T17:00:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-token-vs-coin-whats-the-difference\/"},"modified":"2022-05-16T20:00:17","modified_gmt":"2022-05-16T17:00:17","slug":"crypto-token-vs-coin-whats-the-difference","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-token-vs-coin-whats-the-difference\/","title":{"rendered":"#Crypto Token vs. Coin: What\u2019s the Difference?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a303a689a391\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a303a689a391\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-token-vs-coin-whats-the-difference\/#%E2%80%9CCrypto_Token_vs_Coin_Whats_the_Difference%E2%80%9D\" >&#8220;Crypto Token vs. Coin: What\u2019s the Difference?&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-token-vs-coin-whats-the-difference\/#Token_vs_Coin_Similarities_and_Differences\" >Token vs. Coin: Similarities and Differences<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-token-vs-coin-whats-the-difference\/#Tokens_Use_Smart_Contracts\" >Tokens Use Smart Contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-token-vs-coin-whats-the-difference\/#Perks_of_Tokenizing\" >Perks of Tokenizing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-token-vs-coin-whats-the-difference\/#Types_of_Tokens\" >Types of Tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-token-vs-coin-whats-the-difference\/#Tokens_Today\" >Tokens Today<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CCrypto_Token_vs_Coin_Whats_the_Difference%E2%80%9D\"><\/span>&#8220;Crypto Token vs. Coin: What\u2019s the Difference?&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<figure style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"type:primaryImage wp-image-800193 size-full\" data-pagespeed-lazy-srcset=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/shutterstock_2065222178.png?width=398&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 400w, https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/shutterstock_2065222178.png?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 1200w\" sizes=\"auto, 400w, 1200w\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/shutterstock_2065222178.png?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Crypto coins including Bitcoin, Tron, and Dash.\" width=\"1200\" height=\"675\" data-crediturl=\"https:\/\/www.shutterstock.com\/image-photo\/horizontal-view-cryptocurrency-tokens-including-bitcoin-2065222178\" data-credittext=\"Avi Rozen\/Shutterstock.com\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><figcaption class=\"wp-caption-text\"><span class=\"type:primaryImage imagecredit\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.shutterstock.com\/image-photo\/horizontal-view-cryptocurrency-tokens-including-bitcoin-2065222178\">Avi Rozen\/Shutterstock.com<\/a><\/span><\/figcaption><\/figure>\n<p>Tokens and coins are similar. The difference between a coin or a token may be a technicality, but understanding the difference can help you better understand how blockchains and cryptocurrencies function.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Token_vs_Coin_Similarities_and_Differences\"><\/span>Token vs. Coin: Similarities and Differences<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Coins and tokens are very similar in most regards. Both are a type of cryptocurrency. Both rise and fall in price. And both use blockchains to validate transactions.<\/p>\n<p>The primary difference between a coin and a token is found at the blockchain level. A coin is the default cryptocurrency of a blockchain. For instance, Ether (ETH) is the default currency on the Ethereum blockchain.<\/p>\n<p>When a cryptocurrency uses or \u201cborrows\u201d another blockchain\u2019s network, then it is considered a token. Tokens have their own price, name, and utility that differs from the native cryptocurrency. Transactions made with tokens are eventually settled on the blockchain that they use.<\/p>\n<p><strong>RELATED:<\/strong> <strong><em>What Is a &#8220;Blockchain&#8221;?<\/em><\/strong><\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Tokens_Use_Smart_Contracts\"><\/span>Tokens Use Smart Contracts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ethereum has become the most popular blockchain for tokens because of its programmable smart contracts. Developers can program their tokens with these smart contracts so that when particular conditions are met, certain parts of the smart contract are executed. For example, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/basicattentiontoken.org\/\">Basic Attention Token<\/a> uses smart contracts to reward people for watching an online advertisement. When a user of the Brave browser agrees to the ad, then they are given BAT.<\/p>\n<figure style=\"width: 650px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-800194 size-full\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/digital-contracts.png?trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"A representation of digital smart contracts.\" width=\"650\" height=\"374\" data-crediturl=\"https:\/\/www.shutterstock.com\/image-vector\/smart-contract-digital-signature-concept-electronic-1919888168\" data-credittext=\"ZinetroN\/Shutterstock.com\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><figcaption class=\"wp-caption-text\"><span class=\"imagecredit\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.shutterstock.com\/image-vector\/smart-contract-digital-signature-concept-electronic-1919888168\">ZinetroN\/Shutterstock.com<\/a><\/span><\/figcaption><\/figure>\n<p>Ethereum\u2019s programmable and flexible smart contracts are part of the reason why it has become the world\u2019s second most valuable cryptocurrency. A <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinmarketcap.com\/tokens\/views\/all\/\">look<\/a> at the top tokens shows that nearly all run on the Ethereum blockchain.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Perks_of_Tokenizing\"><\/span>Perks of Tokenizing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Developers choose to tokenize for many reasons. First, it is simple and fast. By using tokens, a new blockchain doesn\u2019t need to be created. Designing a blockchain is extremely tedious and demanding.<\/p>\n<p>In addition, since tokens use another cryptocurrency\u2019s blockchain they do not need to start with a small user base. Blockchains become more secure and reliable with more participants. Instead of trying to find new participants, tokens can utilize existing blockchains like Ethereum or <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bnbchain.world\/en\/smartChain\">Binance Smart Chain<\/a> that have plenty of users.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Types_of_Tokens\"><\/span>Types of Tokens<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are various kinds of tokens. And because tokens rely on programmable code, developers can customize and tweak this code to do an infinite amount of things. As a result, it can be difficult to categorize tokens, but most fall into a few notable groups<\/p>\n<p>Governance tokens are one category. Owners of governance tokens can vote on decisions within various decentralized finance <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications (dApps). The more tokens one owns, the more power their vote holds. A popular example of a governance token includes decentralized exchange <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/uniswap.org\/\">Uniswap\u2019s<\/a> token (UNI). Voting topics can include fee prices, upgrades to the network, and reward quantities.<\/p>\n<p>Most tokens fall in the category of utility tokens. There are a multitude of utility tokens that each have unique purposes. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/chain.link\/\">Chainlink<\/a> (LINK) incorporates real-time data like traffic and weather into smart contracts. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.arweave.org\/\">Arweave<\/a> (AR) is a new, secure data storage solution that incentivizes users to store data for long periods of time. Users are rewarded with an AR token the longer they store data.<\/p>\n<p>One of the most popular utility tokens are non-fungible tokens (NFTs). NFTs use smart contracts to prove ownership. Most use Ethereum, but other blockchains like <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tezos.com\/\">Tezos<\/a> (XTZ) and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/solana.com\/\">Solana<\/a> (SOL) have expanded their NFT networks as well.<\/p>\n<p><strong>RELATED:<\/strong> <strong><em>Here&#8217;s the Problem With NFTs<\/em><\/strong><\/p>\n<p>Despite the name, stablecoins are actually a type of token known as commodity tokens. Commodity tokens are backed by assets that have an independent value. They can be tied to the price of the US dollar, gold, or even oil. The two largest stablecoins, Tether and USD Coin, are built on the Ethereum network.<\/p>\n<p>Security tokens are one other type of token. They are similar to stocks except they are based on a blockchain. Security tokens represent ownership of an asset. This asset could be a company, real estate, or even a car. Security tokens eliminate the delays and fees that are typical of brokerages.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Tokens_Today\"><\/span>Tokens Today<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tokens are one of the most creative innovations that have risen out of the evolution of cryptocurrencies. They fill the gaps most blockchains leave behind. As blockchain and cryptocurrency use cases progress, tokens will as well.<\/p>\n<p>Because it is fairly simple to create a token, there are tens of thousands of tokens. Many serve extremely useful functions. However, there are even more that lack any real purpose. Most of the memecoins that have come out in the last few years are technically tokens. Be cautious and always research any token before purchasing.<\/p>\n<\/div>\n<p><script>\n setTimeout(function(){\n  !function(f,b,e,v,n,t,s)\n  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n  n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n  n.queue=[];t=b.createElement(e);t.async=!0;\n  t.src=v;s=b.getElementsByTagName(e)[0];\n  s.parentNode.insertBefore(t,s) } (window, document,'script',\n  'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n   fbq('init', '335401813750447');\n   fbq('track', 'PageView');\n  },3000);\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.howtogeek.com\/799927\/crypto-token-vs.-coin-whats-the-difference\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Crypto Token vs. Coin: What\u2019s the Difference?&#8221; Avi Rozen\/Shutterstock.com Tokens and coins are similar. The difference between a coin or a token may be a technicality, but understanding the difference can help you better understand how blockchains and cryptocurrencies function. Token vs. Coin: Similarities and Differences Coins and tokens are very similar in most regards&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":448114,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/04\/shutterstock_2065222178.png?height=200p&trim=2,2,2,2","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-448113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/448113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=448113"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/448113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/448114"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=448113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=448113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=448113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}