Cryptosphere is filled with many types of cryptocurrencies, coins, tokens, altcoins, etc . All these words are very common in the crypto world but if you are not aware of the differences in the technical jargons, you can end up confused.
Many a times, coins and tokens are used as synonymous to each other but that is not correct. There is a slight difference between the two. Nobody is responsible for this inaccurate usage of terms as the field is still new and people are still learning about all the terms and jargons.
What does a coin refer to in the Cryptosphere?
The term coin is used for coins which are created by making variations in the code of the blockchain. Examples of coins are Bitcoins, Namecoins, Litecoins etc. These coins are also referred to Ältcoins” since they were created as an alternative to Bitcoins with uses similar to Bitcoins.
The coins in the Cryptosphere is also known as cryptocurrencies or crypto coins.
Properties of Coins
The characteristics of these coins are similar to that of Bitcoins. Here are some of the major characteristics of coins:
- Acceptable: These coins are widely accepted as a mode of exchange
- Fungible and Uniform: In these coins, unit of one coin is equivalent to another. The same denomination has the same value.
- Divisible: The coins can be further divided into smaller values.
- 4. Portable: These coins can be exchanged and carried along.
- Limited Supply: The supply of the coins is limited and constant.
- 6. Durable: The coins can be used any number of times without any degradation in their value and worth.
The parent category of the coins is the cryptocurrency under which the subcategories are coins/ crypto coins and altcoins and the other sub category is tokens.
Bitcoins are the main coins in the cryptocurrencies. Other coins such as ETH (Ethereum) and Ripple are also considered in the coin category since they have their very own blockchain and have the same properties as Bitcoins. But they are not just used as a usecase for money but also for some other utilities.
Some other currencies which are not created on the Bitcoins code are also referred to as Coins in the crypto world as they have their own blockchain and have the same properties as that of the Bitcoins. One example of such coins is Monero (XMR).