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How is a Crypto Token different from Crypto Coin?

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Cryptocurrency tokens and coins are two different forms of digital assets, both having distinct characteristics with varied associated usages. Both are valuable tools in the increasingly popular cryptocurrency industry but serve very different purposes.

What is a crypto token?

A token is a digital representation of value, be it an asset or utility. Although many tokens are based on the Ethereum blockchain, they may also reside on other platforms. They can represent anything from raw materials to currencies to loyalty points and more.

Tokens are used for a variety of purposes such as access control, rewards, or voting in a decentralized system. Tokens are generally created by projects that wish to raise money through token sales, or Initial Coin Offerings (ICOs).

Here are the top tokens you can find on the crypto market:

  • ERC20 tokens: These tokens are created on the Ethereum blockchain and are compliant with the ERC-20 protocol standard. They offer a wide range of functionalities such as representing digital assets, application access, voting power, or loyalty rewards.
  • Non-fungible tokens (NFTs): Unlike other crypto tokens, Non-Fungible Tokens are unique and individual tokens that represent real-world assets. They can be used to create digital collectibles, like art, music, or even virtual lands in gaming worlds.
  • Tether-Tether is a stablecoin that is pegged to the US Dollar. Its purpose is to provide users with a token that will always be worth 1 USD, no matter what happens in the crypto market. This ensures stability and confidence for its holders.
  • USD Coin-USD Coin (USDC) is a digital dollar issued by the CENTRE Consortium and controlled by Coinbase, offering the same benefits as physical cash. It’s used to facilitate global payments with low fees and can be exchanged for other major crypto assets.
  • Binance USD-Binance USD (BUSD) is a stablecoin issued by the Paxos Trust Company and regulated by the New York State Department of Financial Services. It was designed to be used for trading and payments, giving users access to secure digital money with low fees.
  • LEO Token-LEO Token (LEO) is the native token of iFinex, the parent company of Bitfinex. It provides holders with access to exclusive features on their platforms and gives them a share in the platform’s profits.
  • Shiba Inu-Shiba Inu (SHIB) is a decentralized finance (Defi) token created as a parody of Dogecoin. It’s intended to be used for tipping, rewarding content creators, and other similar purposes.
  • Lido Staked Ether-Lido Staked Ether (LST) is a token that represents staked Ethereum. It gives holders the ability to earn rewards from their ETH deposits while keeping it liquid and making it easier to use for Defi applications.
  • FTX Token-FTX Token (FTT) is the native token of the FTX exchange. It gives holders access to discounted trading fees, airdrops, and other benefits on the platform.
  • Chainlink-Chainlink (LINK) is a decentralized oracle network that connects smart contracts with real-world data. It’s designed to bridge the gap between on-chain and off-chain information, providing reliable inputs for smart contracts.


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