Apparently, crypto assets can be divided into several classifications, especially Coin and Tokens. So, what distinguishes each crypto asset?
What makes each crypto asset different?
Coin is a crypto asset that functions independently of other platforms, which means it has its own blockchain technology or system (for example Bitcoin, Bitcoin Cash, etc.).
Token is a blockchain project that uses a pre-existing blockchain platform or is created on another blockchain, for example USD Tether that uses the Ethereum blockchain platform.
To see examples of Coin and Tokens, you can open CoinMarketCap.com, click Cryptocurrencies and click Top 100 Coins Only. You can see the coins that are in the Top 100. For Tokens, you can click Cryptocurrencies again, and click Top 100 Tokens Only to see the tokens that are in the Top 100.
For Coin there are 2 common types
Surely you are familiar with Bitcoin? Of course, it is the first crypto asset found in the world.
Altcoin or alternative coins
Altcoins comes from an alternative version of Bitcoin with a few changes, but some are far different from Bitcoin.
Tokens and Coins, in addition to prices based on supply and demand from the holders of its crypto assets, there are also tablets that process the price formation based on different ways! Namely, the formation of supply and demand which is pegged to certain physical commodities. For example, DigiX and PaxGold are traded on Indodax. Each token is based on a gold commodity owned by the Token company. Thus, the price of Digix and PaxGold is worth the price of real gold. This is a new and easy way to invest in gold and is available at Indodax.
Furthermore, there are also crypto assets based on fiat currencies. In the Indodax marketplace, there are USDT and USDC based on dollar banknotes or Euro Static based on the Euro currency. Thus, the price of the token moves with the price of the guarantor’s paper currency.