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What these terms mean?


What these terms mean: coins, tokens?

While I have definitely joined the crypto frenzy, I cannot help but noticing that the cryptoverse is not exactly user-friendly. As a proof, not too long ago, someone on a social media crypto group, was asking this plain question...

"Can somebody tell me what these terms means?

1. Token
2. Coin
3. Alt Coin
It is a very legit question, here is my best answer. 

It is common to split cryptocurrencies into 3 categories: the Coins, the alt coins and the tokens

The Coins

These cryptocurrencies  are the main cryptos like Bitcoin (BTC) or Ethereum (ETH). They are the elder crypto currencies.
They can be bought with legal or so called fiat currencies  (USD, EUR...) on exchanges that support fiat (legal currency) deposits like Bitstamp, Coinbase.

The AltCoins 

Growing parallel to the above main coins, Alt coins have flourished. 
Most were built as an alternative or a spin-off to one of the main coins. For example, Litecoin (LTC) was created with the idea of becoming a lighter Bitcoin.

As of today (September 2018) there are almost 2000 altcoins. 

The Alt Coin group is further extended with the appearance of successful ICO coins: the tokens.

The tokens

Tokens can be defined as a 'cryptocurrency in raising', that is a crypto in the process of an Initial Coin Offering (ICO).
 
Not all ICOs succeed in raising capital but if they do, their next step is to become listed on an exchange  (market) so that they can be 'publicly' traded. 

This will allow early ICO investors to cash out and others to take positions on this new crypto. In a way, it is the Venture arm of Crypto investing.

Once a token is listed, it is no longer a token, it joins the pack of the Alt coins ...


Hope it helps

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