The Difference Between a Token and a Coin... Simply and Without Complication!

We will not try to complicate matters... but to simplify it!

We agreed from the outset that the encyclopedia (CryptoPedia) will not enter into precise and complex scientific or technological details .. because its aim is to introduce readers to the most important cryptocurrencies (without giving the advice to buy, sell or invest, or bear any responsibility for that, as we agreed in my previous article).

Therefore, we will never try to complicate matters... Rather, we will try to simplify them constantly.

As for anyone who wants to complicate, delve into, and talk about the mechanisms of launching the currency, its technical stages, its technological basis, and so on... He will find what he wants in many specialized sites.

 The difference between Coin and Token:

What is the difference between coin and token? An important question that you must know, whether you are a beginner or a professional, to know the nature of the field that you are dealing with...

• Coin:

Simply put, it is an independent Blockchain-based digital currency of its own (Base) and is not interfered with by any control platform.

Of course, the closest to the mind of an example of Coin is Bitcoin... But you can know the matter simply from Coinmarketcap or similar sites... Once you look, you will know if what you are looking for is a coin or token.

• Token:

A token is also a currency... You can say that it is a currency without a Blockchain of its own (without its own foundation on which it is based) .. but it is based on an already existing network (Such as building a floor in an existing building), where the token is issued in a manner compatible with this network that is based To it like Blockchain or Ethereum.

We simplify further the difference between a Coin and a Token:

Has it become easy?

Let us simplify further the difference between a Coin and a Token.

When you want to build a house, you must lay a strong foundation for this house commensurate with its size... This is self-evident.

This house is the Coin .. and the basis is the network on which it is based .. Blockchain, Ethereum, or something else.

Suppose, for example, that you built your house from only two floors.. but you put a foundation for it ten more floors...

Now you want to add a new floor .. this floor is the Token.

It is - as you can see - based on the same foundation that you laid to build the house (Coin).

Which is better to invest... Token or Coin?

Does this question matter to you?

I think that the question is not important to beginners .. they often do not pay attention to this difference that we are talking about.

I will mention a number of currencies for you:

• Basic Attention Token (BAT)

• Loopring (LRC)

• Dai (DAI)

• Chainlink (LINK)

• Crypto.com Coin (CRO)

• Huobi Token (HT)

• BitTorrent (BTT)

What do you think of it? Isn't it all attractive to you?

Imagine that these currencies are all tokens!

I will not talk in a complicated way as we agreed ... I will give you an example of the difference between a coin and a token in terms of importance or investment...

Imagine, for example, that there is a football match between Barcelona and Liverpool... Each coach will start with only 11 players .. These are the rules of the game... But there are other players who will sit on the reserve seats... Are they less valuable than their colleagues who were chosen by the coach to perform the match as players essential ?!

Of course not... A reserve player may participate, turn the match around, and be the first star of the match and the reason for his team’s victory.

I will give you another example .. Imagine, for example, that Messi, Ronaldo, Mo Salah, or Neymar sat back-up in a match for their team... Does this mean they are the lowest level or worth of those who players essential?

This is the difference between Coin and Token .. Do not give this matter your attention, I am talking here for beginners.

Cover photo Source: By Paweł Czerwiński from Unsplash site for free photos.