Cryptocurrency Token is an asset or any utility that resides on top of another Blockchain. The Cryptocurrency Token is a representation of an asset that is tradable, but in fact exists on others’ platform like Ethereum, or NEO. Created over the Initial Coin Offerings, the launch of the Crypto Tokens is much easier and during the initial stages is offered to the investors in lieu of small Cryptocurrency Coins through the ICO Offerings.
Crypto Coin vs Token:
The purpose of a Cryptocurrency Coin can is to serve as the coin. They act like money, while the Cryptocurrency Token cannot be regarded as the form of money, in the same way as the Cryptocurrency coins are.
– The Coins are based on their own platform, for example, the Bitcoin is based on Bitcoin Blockchain, while the Ethereum is based on the Ethereum Blockchain, while the NEO is based on the NEO Blockchain. But, the Cryptocurrency tokens are built and based on other’s platform; the most famous one is the Ethereum platform, which is ERC-20 platform.
– The Cryptocurrency Coins need miners to verify the purpose of the transaction and to carry out operations, while the Cryptocurrency tokens require no such miners to verification and transaction purpose.
In general cases, the line between Cryptocurrency Coins and Cryptocurrency tokens is not clear and most often the tokens are also regarded as the Cryptocurrency Coins. The clarity over the terms, coins, and tokens aren’t prevalent, and it may take some time when the people will get a clear insight what’s actually a Cryptocurrency Coin and what a token is!