Coin or token, Which is better?
The types of cryptocurrencies available in the crypto market can be divided into two. One is a coin and the other is a token. In today's article I will discuss which are coins and which are tokens. The difference between a coin and a token and how you know which is a coin and which is a token. I will also discuss which of the two is better.
Simply put, coins are those that have their own blockchain and they run on that blockchain and tokens are those that do not have their own blockchain. That is, they run on another blockchain and call it a token. If I say bitcoin is a coin then bitcoin has its own blockchain. The same is true of Ethereum . Ethereum has its own blockchain and runs on that blockchain. But USDT is not like that. USDT runs on Etherium Blockchain, solona Blockchain, Bitcoin Blockchain etc.
How to recognize ....
If you want to know about a currency that runs on its own blockchain, select that currency. For example, here I have selected "Holo Coin", "Nem Coin". After selecting, when you click on the currency, it will take you to another page. At the bottom of the page you can see the currency tokens or coins. You can also see which blockchain it runs on . look at the picture below.
However, if you see any currency running on the Cosmos blockchain, you will assume that it is a coin. Because the currencies that run on the Cosmos blockchain are called coins. Example... Scrt coin.
Which is better ...
Now let's see which one is better. Coins or tokens. If we think of BNB as an example, we see that BNB was once a token. The price was around 20 dollers. when it was a token. But only when it created its own blockchain we see the huge amount of pumps in it. There are many more coins that have pumped a good amount after creating their own blockchain. so if we talk about USDT here, that is, if USDT creates its own blockchain, we will not be able to use it in other blockchains. As of now we can use USDT in Ethereum blockchain or Salona blockchain. If USDT builds its blockchain then we will not be able to use it in all blockchains like this. If we can't use it in other blockchains then it is a loss for USDT . So they run on another blockchain.
Then if we think of Shiba Innu, we see that it runs on Ethereum blockchain . The reason for running on Ethereum is that if you want to make a token in Ethereum blockchain, you can only make one if you have 100-200 dollars. If you want to create a blockchain you have to spend multi million dollars. Moreover, it is a matter of time. So it is difficult to create a blockchain for small coins. For example, Mana (Decentraland), they are busy to creating their own metaverse. If they can run metaverse, their coins will pump a huge amount of money. It is very difficult to run a metaverse. If they are busy building blockchain then they will not be able to run Metaverse. So these little coins run on other blockchains and organize themselves. Which currency will run on which blockchain is stated in their project.
Bitcoin is the oldest coin. In fact, it is the first coin and the first blockchain . It was not a pre mining coin. The amount of bitcoin we see in the market has been completely mined.
The blockchain of the first row coins is designed so that other coins can run in these blockchains. Without this facility, they would have to create their own blockchain before launching into any coin market. It is very expensive and time consuming.
In the end, it can be say that coin are the best for security. And if you think about profit, then I think Token will be better..