Keeping up with crypto news is mind-boggling. If you’ve been trying to get your way around, then you will have noticed that investors and traders use the term ‘cryptocurrency’ and ‘crypto tokens’.
They have got some fundamental differences. Here we discuss some of the primary differences.
What is Cryptocurrency?
Cryptocurrency coins act as a medium of exchange. Except these are issued by blockchains and are virtual. Your trading data of bitcoins are stored as a virtual ledger- public and transparent. It is virtually unhackable. Its safety and decentralized nature have made it a favorite of the Internet, and its stocks have risen and plummeted wildly.
What is a FUN Token?
Crypto tokens are used by companies that build on top of blockchains, and as such are guarded by various regulations and standards like ERC02. They are built from the Ethereum blockchain. Usually used by companies when they have to generate revenue, the process of creating FUN tokens is called ICO- Initial Coin Offering. Blockchain platforms have to undergo an ICO through which investors will buy up tokens. These tokens are linked to the company’s assets and utilities.
So, what’s the difference between them?
Cryptocurrency functions mainly as a medium of exchange and is used by individuals to trade over a peer-to-peer network. They are completely virtual and do not represent any kind of physical asset. Crypto tokens, on the other hand, can be programmed to represent a physical asset of a company such as real estate. Currencies have their networks, whereas tokens are built from existing networks.
Essentially, all cryptocurrencies are crypto tokens, but all crypto tokens aren’t a cryptocurrency.
To know more about FUN tokens, and get accurate predictions and news, check out fun token news.