What is the difference between Token and Coin? 

For investors who are just starting to learn about cryptocurrencies. Many people when starting to study the details of each coin that is available for sale on various boards. Many of you may have begun to notice that there are projects where the currency is called “coin”, while others call it “token.” What is the difference between the two? 

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First of all, I have to tell the reader the definition of Token and Coins in it, besides we have to talk in terms of what people all over the world generally understand with the definition of Digital Asset Act these two classifications are completely different! Let’s first look at the general classification methods.

The two types of coins can be classified simply by their big differences:

  • Coin: Digital currencies that are called “Coins” or “Coins” are projects that It has developed their own blockchain system.
  • Tokens; Tokens are often called small coins. that do not directly develop their own blockchain There are two different characteristics:

(1) A type of coin that is created for specific properties, such as points or points for services, fuels an ecosystem. (Some of which are spent on transactions), as an interest earned if certain types of “coins” are held on condition, used as coupons or services, dividends. Let know more about Rhombus Blockchain by clicking on this link.

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(2) It is a project that does not directly develop its own blockchain, but is “developed from the blockchain of other coins. that has its own blockchain in the system”, often highlighting its being one of the tools that make it easier to work in a specific way. For example, CELER (CELR) is a project developed from the Ethereum blockchain to create a very stable and fast blockchain-based payment system. With the concept of calculating transactions that are isolated but still running on ETH (which, of course, can accept any coin in ERC-20), for anyone who wants to bring a blockchain and smart contract of ETH. Used but worried about the speed of the transaction. This project is an interesting example. The condition or cost of implementing this system is to pay with Celer tokens. Glock for sale online now on the online store. For more information visit this site : glockforsale

Tokens as in (2) are often referred to as side chain projects. But sometimes the main coin of the Chain is used. to be developed in this direct payment instead)

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Tokens can also be broken down even further!

As for the token itself, it is further divided into 2 types as follows:

  1. Utility Tokens are like points or points that are used for the use of various systems or services. New generation configuration used for exchanging goods and services in various ecosystems. Some projects or applications require the required tokens to be redeemed for goods and services. (Or what readers may have heard through their eyes, for example, this token is oil or fuel to drive the system.). It is like a dividend of profits from shops or services such as gas from NEO coins.
  2. Security Token

like stocks or securities It’s similar to when we actually hold shares in a company. For more information visit this site: cnnnewsworld

To be like points for various votes, such as used in the student council elections. One token point is equal to each individual’s score.

The tokenized coin is the name given to a coin that is tokenized as a stock that is converted from the value of a plot of land or a room.

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It is quite interesting that the flexibility of these coin systems can be adapted to various systems in the future.

Imagine that people on the other side of the world would be able to own land in one country without needing to have ever traveled to a country where this form of tokenized tokenization was announced.

Most of them are in the form of ordinary companies in that country. Launched as a real estate company that held large amounts of land or homes in their hands, describing the “money that bought these assets came from foreign investors” and then created a specific deed tied to the tokenized coin. that place according to the actual value, such as a room worth one million baht May is broken down into 1000 tokens. Whoever holds that Token has a proportion of ownership in that location or room. more or less descending Visit now  best online  free sab result website.

Definition of Token and Coins in the form of the Digital Asset Act

In terms of the ordinance, assets are somewhat different from the general view as it is an interpretation that occurred in the early days when the ICO trend was booming and led investors to bankruptcy. (It has been revealed that 80% of ICO projects are scams. News link )

Coin in the definition of the Digital Assets Act is a coin or digital currency. “Custom made” for use in the exchange of goods or services. The coins that are used as mediums that we are familiar with are Bitcoin, ETH.

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Token in the definition of the  Digital Assets Act is a Digital Token that is created as a ticket or point for Exchange or access to various services, including the use of as a token to invest or vote in a business in the form of a particular system.

Tokens can still be subdivided (already)!

Like the general definition, Token in the definition of the  Digital Asset Act can be further divided into 2 types as follows:

  • Utility Tokens are points or coins that are created electronically to “determination” specific goods or services.
  • An Investment Token is a type of point or coin that is created electronically to “determination” the person holding the coin who is entitled to receive it. “benefits or dividends” or simply that the holder will have the right to receive a share of the income including dividends from a business
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How to differentiate between Coin and Token? If we observe carefully It can be seen in the global cryptocurrency exchange market. or even in land, It can be seen that both Coin and Token are displayed for sale. In terms of investors who have to decide which coin should be mainly invested in? It is advisable that you carefully study the system of each project and consider what type of project it really represents. Which one could actually do something? or make a better profit

And as you know, tokens tend to be quite specific tokens. Whether it is a coin for trading services, being held as a stock or asset, or even a “tool” that makes it easier for people to write systems on the main blockchain. It can be seen that the really important factor in price is

  • A project that uses this token to exchange services How reliable are those companies, are they popular? Or even be able to really make a profit or not?
  • Token generated from SideChain to facilitate developers. This is great The value will depend on whether “The main blockchain of the coin popular Can it be further developed into an application that can be used in real life?”
  • Investing in the digital asset market involves a high level of risk. Investors should study the information thoroughly before investing. you should try this site happy2hub and click here to know more about worldupdate and if you use this site you will find a lot of information about thewebnews

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One Comment

  1. It is easy for someone who is new to the world of cryptocurrencies to get lost in the maze of new terminology that seems has no end in sight. This can be a very frustrating experience. New terminology appear on a regular basis, and people get the impression that there are always a number of different ways to refer to the same item.

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