What is Cryptocurrency? A unit of measure, a store of value, and a medium of exchange are all functions of cryptocurrency. A cryptocurrency is administered presently by the blockchain protocol where it moves, that's why it is called the blockchain’s native currency.
In numerous circumstances, cryptocurrencies are not only utilized to pay exchange fees on the network but also encourage users to hold the cryptocurrency’s network Protected.
What is a Crypto Token?
Tokens are a type of currency that is stored on a blockchain and may be moved from one account to another, much like cryptocurrencies. Implementations of smart contracts have an impact on their behavior. Implementations of smart contracts have an impact on their behavior.
Key Points ● Tokens do not have their own blockchain or distributed ledger. Rather, they depend on other crypto currencies' blockchains, such as Ethereum. BAT, BNT, Tether, and numerous stablecoins like the USDC are some of the most popular tokens on Ethereum.
● A token is physically moved from one location to another when it is exchanged. The greatest example to understand this is non-fungible tokens or NFTs. They act as proof of ownership. As a result, the ownership transfer is done manually.
How is cryptocurrency differ from tokens?
Cryptocurrency
Cryptocurrency has its own blockchain or distributed ledger Cryptocurrencies are digital representations of money. Blockchain handles cryptocurrency transactions A cryptocurrency is a digital currency that is used to exchange and store value on a blockchain. Token denotes what the holder possesses When transferring cryptocurrency, transaction fees (or gas) are lower
Token
Tokens do not have their own blockchain or distributed ledger Tokens can represent assets or deeds Smart contracts handle token transactions A token is similar to a coin, only it usually uses the blockchain of another coin. A coin denotes what the bearer is capable of having or can own When transferring tokens, transaction fees (or gas) are higher