What are the Differences between Crypto Money and Tokens?

One of the most discussed investment instruments of recent years. crypto assetsWith the rising trend of Bitcoin, it is on everyone’s lips again. Citizens, especially those who want not to lose money in the face of inflation, often invest in crypto assets that they hear from friends. But many don’t even know exactly what they’re actually investing in. he does not know.

Let’s explain it this way, the things we invest in even your name We don’t know properly. That is to say, crypto assets, which are thousands of types for many people today, are often referred to as “crypto money”. However, this is a huge challenge for the cryptocurrency community. wrong. Because everything you buy and sell is not actually cryptocurrency.

Cryptocurrency (coin) and token are not the same thing.

Some of the things traded on exchanges like Binance are cryptocurrencies, while others are actually is token. In the community, these terms are often used together. Actually, this is not wrong. Cryptocurrency and tokens are very close assets, but they are also very close. they are far away. Let’s take a closer look at the features of cryptocurrencies and tokens.

Features of cryptocurrencies:

• special for them They have blockchain networks.
• a barter, that is as money they are used.
• on its own they are assets. They do not represent any other assets or services.
• To ensure system security to cryptography (encryption).
• It is not dependent on any authority. with codes they are managed.

Yes, Bitcoin is indeed a cryptocurrency.

The features we left above, if you pay attention, actually bitcoindescribes the . That’s why we can accept Bitcoin as a real cryptocurrency. With this, Ethereum It is a cryptocurrency just like Bitcoin.

Features of Tokens:

• They do not have their own blockchain networks. to another network they are connected.
• Playing games not only for money, but also on the platforms where they are established, open access to services or they can be used to complete DeFi procedures.
• Cryptographic features like in Bitcoin or Ethereum there is no.
• They can be managed by an individual or a foundation. If you want today you can also create a token.
• to the lower classes They can also leave.

Most of the tokens are built on the Ethereum network.

Ethereum, the world’s second largest cryptocurrency by volume, is an invaluable asset for tokens due to its structure. is a blessing. Aware of this, teams prefer Ethereum the most when they want to develop tokens. For example, fan tokens belonging to football clubs. FC Barcelona Fan Token (BAR)is a token linked to the Chiliz chain, one of the sub-chains of the Ethereum network. All of the features we have mentioned above are actually among the features offered by FC Barcelona Fan Token (BAR).

How do we know if a crypto asset is a cryptocurrency or a token?

Let’s say you want to invest in any crypto asset, but first you want to find out if it’s a cryptocurrency or a token. The easiest thing you can do is access that crypto asset’s website, browse your whitepaper will be. If it says there that the crypto asset has its own network, it is a cryptocurrency. It is a token if it is connected to another network. That’s it to understand it’s that easy.

Whitepaper what admin?

If you are interested in the cryptocurrency community, you should get used to reading. The whitepaper, also referred to as a “white paper” in some places, is the is the technical document. You know, when you buy an electronic device and there are brochures with pages of text in it, that’s what a whitepaper is. All details about the project in question are written here. Thus, what you invest in what is it you understand well.

• Editor Note: If you want to invest in a crypto asset, it is a good idea to read its whitepaper first. If you read the document very carefully and really understand what the team will do, you can easily figure out whether the project is promising or not, even if you are not an expert. Thus, you can participate in pre-sale programs or make long-term investments. One of the best investment advice that can be given in this community is the advice to read the whitepaper.