Is token same as crypto?

Cryptocurrencies can be broadly categorized into two types: coins and tokens. The fundamental distinction lies in their underlying technology and intended purpose.

Crypto tokens, on the other hand, are more versatile. They can represent a wide range of assets, including equities, commodities, or even digital art. By tokenizing these assets, they enable fractional ownership, increased liquidity, and streamlined transactions on the blockchain.

Crypto coins possess their own dedicated blockchain, a decentralized digital ledger that records all transactions. This autonomy enables coins to function as a standalone currency, offering users a secure and transparent means of exchange.

In contrast, crypto tokens are created within an existing blockchain ecosystem. They do not have their own blockchain but instead leverage the infrastructure of a parent blockchain to facilitate transactions and represent ownership of digital assets or services.

The purpose of crypto coins is straightforward: to serve as a medium of exchange. They are designed to mimic traditional currencies, providing users with a decentralized and potentially more efficient alternative to fiat money.