For most of those who are new to cryptocurrency, it is very difficult to understand the difference between cryptocurrency coins and tokens.
The terms 'coins' and 'tokens' are confusing and are interpreted differently by different individuals.This article aims to help the new-comers understand the difference between cryptocurrency coins and tokens.
Coins and Tokens
Coin is a Cryptocurrency which operates independently of any other platform.
For eg. Bitcoin, Dash and Litecoin.
Token is a cryptocurrency which requires another platform, such as Ethereum, to exist and operate.
For eg. OmiseGo, Golem, TenX, Tether & Gas.
There are many tokens built on top of Ethereum platform like Augur, Status, Golem, OmiseGO, TenX & Kyber Network. Ethereum is not the only platform out there.
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There are a number of other platforms available, for the Tokens to be built upon, i.e. Nxt, Omni, NEO, Waves, Qtum, Counterparty, Bitshares, Ubiq & Burst.
Coins and Tokens Categorized in Coinmarketcap
If we see coinmarketcap, the website that tracks all the cryptocurrencies in the world, we will find that they have categorized the cryptocurrencies in two groups, Coins and Tokens.
In the category of Token, there is an additional column called platform to identify the platform used to build the token.