What is the difference between alt coins and tokens?

in cryptocurrency •  3 years ago 

difference between alt coins and tokens.png

🪙Coins are any cryptocurrency that is independent or has a standalone blockchain. One good example of a coin is Bitcoin (BTC).

📊Bitcoin has been a success then came Ethereum's Ether coins(ETH). Based on Bitcoin's codes that were modified, Ethereum was created to fill in the gaps or faults and correct these as its general purpose is to run on a decentralized blockchain. Now this blockchain covers from games to social media.

💰Now, altcoins are any alternative coin to Bitcoin that aims to develop, improve and find more efficient ways to complete a transaction on the internet.

💵Tokens represent an asset created on an existing blockchain. These assets range from commodities that could be exchanged to cryptocurrencies, as these are tradable or fungible. The most popular token platform is still Ethereum, where all tokens created on this platform are called ERC-20 tokens.

📌Type of tokens:
1⃣Security tokens
2⃣Equity tokens
3⃣Payment tokens
4⃣Utility tokens

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