Understanding Crypto Tokens – Course Overview
Establish a general understanding of the nature of the most popular crypto tokens; including Nano, Ontology, ICON, Binance Coin, Qtum, Ethereum Classic, Zcash, Bitcoin Gold, IOTA, and Populous.
1. What is the difference between crypto coins and tokens? Crypto coins are the native asset of a Blockchain like Bitcoin or Ethereum, whereas crypto tokens are created by platforms and applications that are built on top of an existing Blockchain.
A Blockchain can only have one native asset (coin), whereas it can have hundreds of tokens built on top of it.
2. TOKENS are digital assets defined by a project or smart contract and built on a specific blockchain and often used for trading. Tokens can be classified as UTILITY TOKENS or SECURITY TOKENS. UTILITY TOKENS are also called consumer or incentive token.
Created through an initial coin offering, (ICO) crypto tokens are often used to raise funds for crowd sales.
3. Crypto tokens can represent an investor's stake in the company or they can serve an economic purpose, just like legal tender. This means token holders can use them to make purchases or they can trade tokens just like other securities to make a profit. The Understanding Crypto Tokens course will start you on the path to mastering crypto token knowledge.
Cryptocurrency can gain value on exchange platforms. It increases in value based on supply and demand. The supply of a cryptocurrency depends on how many new coins are being mined and how many current owners want to sell their coins.