Are there any differences between digital currency and token? Of course there! Cryptocurrency is a virtual or digital currency that is derived from strong cryptography. It’s the same technology that made it immutable and secured. Majority of the cryptocurrencies are actually based on blockchain technology.
What about a Token/Coin?
As the name suggests, token or coins carry the same feature as money. Meaning to say, they are:
- Divisible and;
- Limited in supply
Having said that, cryptocurrency coins are designed to be like physical cash that can be used for making payments. But there are exceptions of course.
For instance in Ether; it may be carrying all attributes of a coin but its function is way beyond its monetary role. The reason is that, it is being used for facilitating transactions in Ethereum blockchain.
Also, there’s the so-called “altcoins”. It has acquired its title for having a resemblance to Bitcoin. Many of the altcoins are derived from Bitcoin and developed by using open-source protocol of the said cryptocurrency.
The Age of Crypto
On the other hand, even though these cryptocurrencies are being mined, take into mind that each of it has features that made them unique to each other.