S4B CRYPTO CONTEST - SEASON 11
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Good day my dear steemians, hope you all doing great by the grace of God, I want to take part in this contest which was organized by @waqarahmadshah in STEEM4BLOGGERS Community, hope you all find it useful and enjoy as you read through.
WHAT IS THE MAIN DIFFERENCE BETWEEN A CRYPTO TOKENS AND A CRYPTO COINS |
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For us to indicate the difference between this two digital assets, we have to know what the are and what the are used for, let start with crypto tokens.
CRYPTO TOKENS
Crypto tokens are currencies which are supported by a specific blockchain but the are not the main network coin, when ever a developer want to create a cryptocurrency tokens makes the process much faster, less expensive and simply and without the need to build a Blockchain for that cryptocurrency.
They are stored in Blockchain wallet and can be traded, bought transferred e.t.c.CRYPTO COINS
Any cryptocurrency that has a standalone blockchain, or let say any cryptocurrency that runs on it's own Blockchain, is a crypto coin. Crypto coin is also referred to as a digital currency which is an alternative form of payment, created using encryption technologies and you need a cryptocurrency wallet in other to use them.
Now what is the main difference between a crypto tokens and crypto coin? Here they are ;
| CRYPTO TOKENS | CRYPTO COINS |
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| Are digital assets which are built on an existing Blockchain for a decentralized project | Is a form of digital currency that's native to it's Blockchain and also store values . |
| Offers holders certain platform-specific features | Can be mined through proot of work, or earned through a proof of stake. |
| Tokens example; Uniswap (UNI), Cronos (CRO) | Example; Ether (ETH), Bitcoin (BTC). |
CAN CRYPTO TOKENS REPRESENT ASSETS OTHER THAN CRYPTO COINS |
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Not really as crypto tokens are just a representation of an assets that can be tokenized on an existing cryptocurrency's Blockchain they may have many similarities but cryptocurrencies are the native assets of a Blockchain, crypto tokens can only represent a unit of value.
IS BITCOIN CONSIDERED A CRYPTO COIN OR A CRYPTO TOKEN |
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 PIXABAY |
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Bitcoin is the most recognized cryptocurrency created with a Blockchain technology. It is designed to portray as a money and form of payment outside the control of any one person with the absence of trusted third-party involvement like bank
It's was introduced to the public in 2009 by an anonymous or group of developers using the name Satoshi nakamoto. Bitcoin has become the most popular and largest cryptocurrency in the world and with such popularity inspiring the development of many other cryptocurrencies.
ARE CRYPTO TOKENS MORE VOLATILE THAN CRYPTO COINS |
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Actually different tokens can be unpredictable in several ways and some tokens are more volatile than coins.
It's important to note that several factors can brings a great impacts to tokens volatility such as development, news limited supply and others also the major holders of a token can also affect it's by deciding to trade the token in large quantities which can lead to volatility.
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_I wanna place my humble invite to my friends to take part in this contest, if they haven't.
@shiftitamanna
@nanidi
@jasa107
MY REGARDS @JEWEL005 |
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This post have been promoted on X
https://twitter.com/JoelUdobang/status/1801660847787278472?t=YIPWkf2ELJnx8xrPCUB0lg&s=19
Hey hey you got my attention. It is a subject of my interest
Tokens and cryptocurrencies, a really interesting topic. thanks for mentioning me, I will participate for sure !!!!
I know you will like it sir, can't wait to see your interesting entry
You've explained the difference between token and coins in the best way and it really attracted me. Furthermore, in my opinion, both coins and tokens can be volatile.
Thanks, that's also true