News > Know your cryptocurrency lingo — Crypto coins and tokens are not the same thing

Know your cryptocurrency lingo — Crypto coins and tokens are not the same thing

Business Insider | 27/09/2021 07:41 PM | Click to read full article

Decentralised blockchains are the foundation of almost all cryptocurrencies, coins and tokens. Coins are meant to be used directly for transactions, similar to conventional money. Tokens make use of the same foundations laid by coins, but represent digital files and function as tradable assets.

For an investor choosing between hundreds of different cryptocurrencies to invest in, the difference between each of them is not immediately visible — but it exists nonetheless.