Quote from: bitbitP on August 29, 2018, 08:01:23 AM

All coins and tokens are considered cryptocurrencies, irrespective of their function as currency or medium of exchange. Therefore, you often read of cryptocurrency coins or cryptocurrency tokens. Often, coins are also referred to as altcoins (alternative cryptocurrency coins) to name digital currencies that are an alternative to Bitcoin. So, what's the difference?

Function vs. Structure

The purpose of a coin is to act like money and become a means of payment while storing value over time. Most known and popular coins take the form of Bitcoin-derived blockchain tokens like Bitcoin, Litecoin, and Monero. A coin, Bitcoin, aims to be a cash replacement, so the function is solely to denominate value in an exchange of goods or services. Their value in fiat money proves their likelihood to become popular as they can become a liquid form of money eventually.

Tokens purpose is far more focused. They are created on existing blockchains (for example Ethereum) to activate features of the application they were designed for. Blockchain tokens have value, yet they are not seen as actual money the same way coins are considered. Tokens can be considered a type of instrument that creates the environment for a better circulation of value between businesses and their customers you fund a smart contract with the underlying coin and investors receive tokens from the company running the offering. This way, customers are incentivized to interact with a business through a crowdfunding and with no large financial commitments as often acquiring one token only is enough to be included in the project.

While there is a blurry line between what coins and tokens are defined as there are certain aspects on which the crypto community agrees. Coins are considered methods of payment while tokens give access to a product and unfold many other functions of a specific project. Coins are used for purchasing and selling goods or tokens as the first operates independently and the latter has value mostly within a projects ecosystem. Often tokens are given to crowdfunding supporters to spend on their favorite services and products, and this is a great opportunity for businesses to deliver a significant amount of value for their projects idea.

In the end, a coin like Bitcoin has been trying to break into the payment sector based on its claims of swift transactions, while tokens have already taken over the market and the tokenization model is delivering great results. Read more : https://pumapay.io/coin-vs-token-whats-the-difference/

Firstly, I thank you for this informative writing.

I prefer coins generally, instead of tokens. Of course I have some tokens, but the prices of the coins have already low prices, and if you are a holder, I believe that you can have good profit by choosing profitable coins.

nobetci

Posts

Merits