This is 2021 and the evolution of Artificial Intelligence has taken us to the verge of another digital revolution. Those days are long gone when we used to make transactions in dollars, rupees, and other currencies. willing to know batter options in the crypto market “crypto token vs crypto coin”
Leading business tycoons like Microsoft, Tesla, Amazon, and Starbucks have started accepting payments through cryptocurrencies.
Such a boom in the growth of cryptocurrencies has made terms like “Which is Better in-between Crypto Coin vs crypto-token” common buzzwords among digital and trading enthusiasts.
In this blog, we’ll learn Why is Crypto Token Better than Crypto Coin. However, before diving into the further concepts, let’s start with some basics.
What is Crypto Coin?
Before understanding Crypto Token VS Crypto Coin, it is essential to understand what a crypto coin is.
A Crypto coin is a fragment of its cryptocurrency that operates independently without the involvement of any government or financial institution and it is only added to the blockchain after completion of certain protocols.
For an instance, a bitcoin transaction is only verified and added to the blockchain after getting mined by a miner. Without mining, it is impossible to validate a bitcoin transaction.
What is Crypto Token?
Now we understand the definition and working of bitcoin. However, to understand the difference Between a crypto coin Vs crypto token. It is essential to know about a crypto token.
A crypto token is a digital asset of cryptocurrency that relies on its own blockchain, it represents physical assets, utility, or service that allows the holder to utilize it for trading or investment objectives.
What is a Blockchain?
Blockchain is a digital ledger that records transactions of bitcoins, every cryptocurrency has its own blockchain.
Difference Between Crypto Coin And Crypto Token?
|Crypto Coin||Crypto Token|
|A Crypto Coin is a virtual currency similar to the physical currency.||A Crypto Token is a digital asset issued on a particular project.|
|A Crypto coin operates on the protocols of its own blockchain.||A crypto token doesn’t operate on its own blockchain. They’re issued on the Ethereum network.|
|Crypto Coins are only used as a source of finance and payment on a blockchain.||A Crypto Token has a far-ranging functionality than a Crypto Coin. We can use it to make investments, store value, or make payments.|
|Examples of Crypto Coins are Bitcoins, Etherum, Cardano, etc.||Examples of Crypto Tokens are Tether, Chainlink, Uniswap, etc.|
Now the difference between a crypto coin and a crypto token is like a piece of cake to understand. So, let’s break the ice and move forward to understand the pros of Crypto tokens over coins.
Types of Crypto Tokens
Crypto tokens are types of digital assets that feed on the blockchain, they are of four types:
- Payment tokens
- Utility tokens
- Security tokens
- Non-fungible tokens
Payment tokens are the most fundamental types of crypto tokens used to exchange, and store value. Popular cryptocurrencies like Bitcoin, ADACardano are examples of payment tokens.
Utility tokens are those types of crypto tokens that hold some value/ownership for a product or service available on the blockchain. Ethereum and Litecoin are the most common utility tokens.
For example, you can use Gas coins to subscribe to the NEO network.
Just like stocks in the share market, these types of crypto tokens hold some ownership right of a specific stakeholder on the blockchain.
A Non-fungible token is a type of crypto token that represents a specific digital asset without any unit value. As the name suggests, they are non-exchangeable and represent ownership rights and authenticity.
Why is Crypto Token Better than Crypto Coin?
As compared to Crypto Coins, a Crypto token boasts an extensive range of applications.
We can use a Crypto token to represent a digital asset as an investor’s share in some company or to hold some value like a legal tender.
Whereas, a crypto coin is only a medium of finance or transactions usable on its own blockchain.
Following are the benefits of using Crypto tokens over the Crypto Coins
Crypto tokens are the future of representing assets. A token offers easy trading and exchange of assets without the involvement of any intermediaries. Tokenization eradicates all of the middlemen from the market and makes the path to trading frictionless.
Even without dedicated standards and protocols, the blockchain integrates all of the token holders which was never possible in the stock market industry.
Evolution of Trading
The adoption of the latest terminologies such as Decentralised Finance (Defi), Initial Coin Offering (ICO), and Security Token Offering (STO) are increasing the growth of Crypto Tokens in the finance industry.
You can also make a strong foothold in crypto trading by investing in token development services.
Crypto tokens work independently on the Ethereum blockchain, it demarcates the presence of middlemen or any other financial institution. The penetration of Crypto tokens has started introducing direct trading opportunities in multiple industries.
You can also tokenize the assets of your organization with BR Softech Ethereum (ERC20) Token Development services.
Benefits of Creating Crypto Token for small and medium businesses
In this modern age of digitalization, everything gets popular within a second. Similarly, the boom in crypto trading is also catching waves. Various entrepreneurs are googling Token vs cryptocurrency to understand the benefits of using these digital assets.
Following are the benefits of using Crypto Token for small and medium businesses:
Crypto tokens are digital assets that central banks or any other governmental bodies cannot track. Small businesses can use this advantage to make their own digital assets according to the business requirements.
Having your own cryptocurrency development can eliminate various expenditures and increase customer engagement globally.
Crypto tokens are a trending topic among all digital enthusiasts. Various business tycoons like Microsoft, Tesla, Starbucks, and Amazon have introduced their own cryptocurrencies.
Jumping on the bandwagon will give you a stronghold against your competitors and it will also enhance the user acquisition and online engagement of your business.
Tokenization is emerging as a future of trading. A small company can use crypto tokens for the process of crowdfunding, it’ll help them to raise funds for a business idea or venture.
By using the concept of Initial Coin Offering (ICO), startups can reach out to more investors and fill the gaps of inadequate funding.
In today’s era, nothing is more secure than cryptocurrencies. Just like crypto coins, crypto tokens follow high-level encoding protocols which keep the value of these digital assets hackproof.
If a small business does international trading then As compared to Crypto Coins, a Crypto token boasts an extensive range of applications. ing crypto tokens can save them from unnecessary expenditures like taxes, etc.
Cost of Crypto Token Development?
When it comes to token vs cryptocurrency, crypto tokens take the first place with their wide range of functionalities and advantages.
Now you might be thinking about the cost to develop crypto ERC20 tokens, this section will guide you about the Cost of Crypto Token development.
The success ratio of tokenization is growing at a rapid pace because of several advantages like business expenditure on a global level, brand engagement, etc.
Being a small business owner, you can also develop your own crypto tokens at cost-effective rates. The starting cost of Crypto Token development is $2000 which goes higher than $6000 depending on the software features, client’s expectations, and the country of the token development company.
How to Hire a Token Development Company?
Hiring a reliable Token development company from the pool of google search results is always a daunting task.
To make this long story short, our crypto experts have handpicked a few tips that will help you to hire a Token Development Company.
Crypto development is not something that you can assign to anyone, it requires exceptional development skills, strong focus, and efficient problem-solving skills.
Hire a token development company having 5-10 years of industry experience because outsourcing your project to a newbie can put your funds in vain.
A Portfolio reflects the skills, achievements, and experiences of a software development company. If a bitcoin wallet development company has built below 100 apps then you should not hire them.
Crypto token development is not a one-man task, this technology encompasses various complex algorithms and protocols. You should hire an App development solutions provider for token development only if they have an experienced team of more than 20 Blockchain software developers.
The client testimonials of a crypto token software development company will help you to know about their actual feedback.
Check testimonials of the apps that they had built, check their brand value on social media channels. It will help you to perceive what people are actually talking about them.
Why choose BR Softech for crypto token development?
BR Softech is a leading crypto token development company with 10+ years of experience. We have a team of 50+ blockchain developers, they possess in-depth experience and knowledge about developing such platforms.
Our experts understand the gravity of your business idea. That’s why we believe in complete project transparency, real-time communication, and on-time project delivery.
We offer flexible token development plans through which you can hire our blockchain developers on an hourly, daily, or fixed basis.
BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2010 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, mobile/ software development and other digital marketing services intending to deliver outstanding digital outcomes.