Difference between a cryptocurrency Coin and a Token. For the purposes of this lesson, I will be talking about a coin versus a token as it applies to buying selling, and trading cryptocurrency the reason I’m saying I’m making that exception is because there are some people that define a coin strictly as a means of electronic payment. So a Bitcoin and a Light coin would be a Coin and a Token would be anything other than a coin that’s used for electronic payments.
But for the purposes of this lesson in this article, I’m going to focus specifically on how Coins and Tokens are defined when it comes to their valuation for buying selling, and trading. For those purposes, a coin is a cryptocurrency which operates independently of any other platform examples of coins are Bitcoin, Bitcoin Cash, and etherium and I will be showing you an example of where the coins and the tokens are listed so you can see how they are clearly separated between coins and tokens.
So for the purposes of this article, you see that Bitcoin, Bitcoin Cash, and etherium are coins when it comes to cryptocurrencies a token requires another platform such as an Etherium to exist and operate examples of tokens arugur, omisego and golem. These are tokens that are built on top of a Etherium now there are other platforms that you can build tokens upon not strictly a etherium there’s NXT there’s Omni there’s waves and I will show you exactly an example of these different coins and tokens. There is some coin price tracking website called coinmarketcap that tracks the cryptocurrency market it actually tracks all cryptocurrencies available and it is constantly updated as new cryptocurrencies are made available as at the moment of this recording there are 3327+ cryptocurrencies which are being tracked by coinmarketcap now as you can see the full list you’ll see the systems that we said we said there’s Bitcoin there’s a the orem there’s Bitcoin cash but there’s a definition between coins and when we go into tall coins what we see is that the ones that we define Bitcoin, etherium and Bitcoin cash are listed here. And yet when we go to tokens we find that it’s a completely different list we finally say go which we spoke about we talked about auger we talked about golem but you also see there’s a column called platform and what that means is that these tokens that you are seeing here are built upon these platforms as we specified sago is built on an etherium so augur sews golem built on Ethereum. But there are other tokens that are built on different platforms such as Omni and XT and you see others such as any o waves is another one. So the key point and lesson of this is that coins are standalone cryptocurrencies that do not require another platform to run. And tokens are actually built upon other platforms and they exist on that so when you hear about any type of offering of a new token that token is being created and launched on top of a platform such as a theory.