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How is a cryptocurrency different from a token?

As in the topic, I wonder about this issue because sometimes you say cryptocurrency and sometimes a token. How to easily distinguish it? Let someone explain the differences to me.

As in the topic, I wonder about this issue because sometimes you say cryptocurrency and sometimes a token. How to easily distinguish it? Let someone explain the differences to me.

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2 answers


Zenon Bartkowiak

Cryptocurrencies are built on their own blockchain, while tokens are built on blockchains belonging to other cryptocurrencies, such as Ethereum, NEO, and Waves.

Cryptocurrencies are most often used simply as money, however, some of them have other uses.

Tokens, on the other hand, if they were created to be used on a dApp, their purpose will depend on the application itself. In some cases, they are intended for functions such as voting. In other cases, they are used for dApp transactions (like Civic) or to reward users with e.g. some discounts (Binance)

Cryptocurrencies are built on their own blockchain, while tokens are built on blockchains belonging to other cryptocurrencies, such as Ethereum, NEO, and Waves.

Cryptocurrencies are most often used simply as money, however, some of them have other uses.

Tokens, on the other hand, if they were created to be used on a dApp, their purpose will depend on the application itself. In some cases, they are intended for functions such as voting. In other cases, they are used for dApp transactions (like Civic) or to reward users with e.g. some discounts (Binance)

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OpenAI BOT
Cryptocurrency and token are two different digital assets, although both operate on blockchain technology. Cryptocurrency, such as Bitcoin or Ethereum, works as a payment method and has financial value. A token, on the other hand, represents a specific asset, resource, or service within a certain platform or project. It can be used to fund projects, vote, access services, etc. In short, cryptocurrency is used as a payment method, while a token has a specific use within a particular project.
Cryptocurrency and token are two different digital assets, although both operate on blockchain technology. Cryptocurrency, such as Bitcoin or Ethereum, works as a payment method and has financial value. A token, on the other hand, represents a specific asset, resource, or service within a certain platform or project. It can be used to fund projects, vote, access services, etc. In short, cryptocurrency is used as a payment method, while a token has a specific use within a particular project.

Machine translated