Categorization of Cryptocurrencies

By CIOReview Team

Categorization of Cryptocurrencies

Well, when talking about the cryptocurrencies, bitcoin is quite a popular name comes to each and everyone's mind. But let me tell you that, there are many more currencies which exist even prior to the bitcoins. But the bitcoins creation has changed the milestone of the digital currencies.

Also, the creation of bitcoin precipitated a more diverse ecosystem, and the cryptocurrencies were further categorized into two parts, the coin as well as the token. Well, today we are going to study the Categorization of Cryptocurrencies in detail. So, let's take a further look at the categorization of cryptocurrencies, the coin as well as the token.

The most important factor to know before moving further is that all the coins, as well as the token,comes under cryptocurrencies. even though, most of the coins are there who are not considered as the medium of exchange as well. So, now let's take a look at the comparison of the coin and the token.

Coin v/s Token

There can be thousands of tokens built on a single blockchain but there can only be a coin of its own. For instance, the most prevalent coin is Ethereum, this can have many of its fork or tokens.

Following are the five most famous crypto coins:-

-> Ethereum
-> Bitcoin
-> NEO
-> Monero
-> Ripple

So, these coins can have many tokens of their own.

Deciding between coins and tokens, you must consider two important aspects - Time & Cost. This should be kept in mind that starting your own blockchain is very much costly and time-consuming, requiring lots of technical expertise and knowledge. Creating a Bitcoin fork also requires technical know-how but its comparatively less complicated than starting of a coin. Also, I will recommend that if you are still planning to create a crypto coin, you should hire someone who has years of experience in this field for a successful start. You can know more about the coins and tokens on 1k Daily Profit and to access the knowledge base, you need to login here/Register.

My suggestion to you is to go with bitcoin fork or blockchain of any of the well-known cryptocurrencies such as Ethereum or NEO if you don’t have technical knowledge.

Conclusion

The main difference you get to see between the coins, as well as tokens, is their structure. See, basically, the coins are separate currencies which have their own separate blockchains. Whereas, the tokens operates on top of thos blockchains itself. But the thing is that a majority of digital currency available are the tokens (Around 80%).

As it is much easier and simple to create a token as compared to a coin. So, that's all about it, these are the categorization of cryptocurrencies, the coins, and the tokens. And I am really very sure that now, you must have understood the difference between them.

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