Get brief details about Cryptocurrency, Altcoin And Token

What is Cryptocurrency?

Cryptocurrency is a medium of exchange values just like ordinary money. It exists in digital world that makes more secure your transaction. In other words, it is an alternative option of payment to cash, credit card and checks. If you are required to send ordinary money to someone then you have to visit bank. But the technology behind it allows you to send it directly to second party without visiting any social bank or third party. If we open it more clearly then you can also understand it in this way that cryptocurrency is like virtual accounting systems. It keeps a record of all transactions. If you are living in other country then you can send money to your family without incurring hefty international fees. You are absolutely not worry about payment fraud or invalid check.

Let’s get to know about cryptocurrency and its future

What Is Altcoin?

An altcoin is a term that is alternative to bitcoin, is any digital cryptocurrency similar to bitcoin. It is used to describe any cryptocurrency which is not a bitcoin. Altcoins are those that are developed by diverging the fundamental rules of bitcoin or we can say that it is a new development of cryptocurrency from scratch. Generally, there are many bitcoins use the similar fundamental building blocks same as bitcoin. It is a free, open source platform that’s the reason they are easy to approach. There are some altcoins that have different monetary policy rules of building currency so that treatment and uses of currency can become in easy way. An altcoin is also able to store different metadata regarding the previous transaction of a particular coin or may allow the coin to be repurposed as an alternate asset. There are some examples of altcoins such as Litecoin, Dogecoin, Blackcoin, Freicoin, Peercoin, Vericoin, Myriad, NXT.

What Is Token?

In blockchain, there is use typically tokenized transactions and those tokens are called as cryptocurriences. In other words, we can say that a cryptocurrency token is a store of asset value and asset may be widely depends on the blockchain. There are projects such as NEO and GAS are known as are dual-token blockchains, where NEO is a digital security token, while GAS is used to power tokenized transactions on the NEO network. There are also many blockchains such as Ethereum support development of additional cryptocurrency tokens and projects likes Tron, EOS, and VeChain Thor were started as Ethereum-based tokens. The term “token” is used to describe proprietary tokens hosted on third-party blockchains.

Difference Between Coins, Tokens And Altcoins
Coins Tokens Altcoins
Coins are digital money that are also called as alternative cryptocurrency coins. Tokens are digital assets that are used as a method of payment issue by the project. Altcoins are generally defined as everything else, infact Ethereum is also an altcoin.
The value of coins increases Tokens perform similar to coins There are 1500 other
with the time and we can consider as digital equivalent of money. but the main difference is it also gives the same authority to holder for participating in the network. coins out there are considered “alts.”
The best example of coins is bitcoins. You may consider best example of token is real life token that you can use certain time at certain places. There are many examples of altcoin like clones of bitcoin, like Bitcoin Cash, Litecoin, etc.

Shailly Kashyap

I am a freelance blockchain writer. Having 4 years of experience in blockchain industry, I have written many articles and blogs on cryptocurrency. My goal is to work with dedication, deliver accurate and transparent information that helps to companies and users to grow.

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