Topic: Altcoins vs Tokens (Read 461 times)

Yes, I agree. Coins are standalone cryptocurrencies that do not require another platform to run, whereas Tokens are actually built on other platforms and they exist on that platform.

It can be easily understood the difference between altcoin and token: the platform.
Coin is a Cryptocurrency which operates independently of any other platform. For eg. Bitcoin, Dash and Litecoin.
Token is a cryptocurrency which requires another platform, such as Ethereum, to exist and operate. For eg. OmiseGo, Golem, TenX, Tether & Gas.

I have a question regarding the reliability of tokens: is the investment in tokens as safe as that in coins? Looking for experts comments. Thank you in advance.

It would be more correct to divide into different means  "tokens" and  "currencies" . Both of them could be named "altcoins", but currencies are used primarily for payments, while tokens - are the "fuel" for operating of certain projects systems/networks.

Coins with own chain from my point of view look much better than tokens from a technical point of view. However Tokens are like stocks and they are very difficult to compare with coins, because by and large this is something else.

I’m new to crypto but I was able to understand the basic differences between coins and tokens. If I bought tokens what exactly am I getting! Am I giving the developers money to build their product, hopefully succeed. But what am I really getting for my money. Right now it seems like a lottery ticket. Maybe I'll win a lot of money and maybe I won't.

In terms of the purposes of these two types, coins actually function via block chain tech while tokens function on top of whatever technology or business the business is running. With actual ""coins"" they are the business per say. A coin is attached to its blockchain. Tokens are just sold on top of tech as shares.

A special feature that all altcoins have is that they each possess their own independent blockchain, where transactions relating to their native coins occur in. Whilst, tokens are created and distributed to the public through an Initial Coin Offering (ICO), which is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development.

Coin, for instance Bitcoin, is a crytocurrency type which operates independently of any other platform. In other words a coin has its own platform which is called blockchain.
Tokens require another platform such as Ethereum or Omni to exist and operate.

A crypto coin is just that: a coin, or means of payment, whilst a token has wider functionality.
The express purpose of a coin is to act like money, storing value over time and enabling businesses to account and pay for services.
Blockchain tokens do have value, but they cannot be considered money in quite the same way that a straightforward coin can. Tokens are generally hosted on another blockchain, like Ethereum or Waves: 2.0 protocols that allow users to create them using the core coin (e.g. ETH or WAVES — though there’s some debate about whether ETH and WAVES, both of which act like ‘fuel’ for their systems, are coins in the same way that BTC acts as a simple currency).
Tokens offer functionality over and above that of digital cash. They may deliver value to investors, beyond speculative returns. They may be used to hold votes by the community on key business decisions, or even technical changes to the platform.

You said it right. One more thing is that many tokens are actually utilities and will come under way strict regulations once governments start regulating them.  Many coins are opensource projects that dont belong to anyone ike Bitcoin or Monero.  Most tokens are issued by private companies with sole reason to make profit.


I miss more options to group different crypto on coinmarketcap. I am sure we will soon see a strong coinmarketcap competitor and that will force coinmarketcap to push further to offer us even more informations.

I'm not very strong at programming, but how really do the blockchain of the token and coins differ? I only know that coins’ chains are unique for each coin.

The main difference between altcoins and tokens is in their structure. Altcoins are separate currencies with their own separate blockchain. Tokens operate on top of blockchain that facilitates the creation of decentralized applications.

I trade mostly with coins, but tokens have a nice feature they are more volatile and I was happy to make a big profit on them.

To be honest, I do not know much about tokens and I'm not particularly interested in them because I do not invest in them, I think it's risky. It’s only for experienced traders.

     There is a small difference between tokens and altcoins. When it comes to tokens, it is about the initial currency offer, while altcoins are used as an alternative to Bitcoin investments, being on the market for a long time. Also, altcoins are separate, autonomous coins with a separate blockchain, while the tokens operate on a blockchain that can hierarchize them according to certain criteria,

Yes it is really a big difference between altcoin and tokens because altcoin is an alternative cryptocurrency as alligned the list of bitcoin in coinmarketcap.Altcoin also is kind of crypto coins that the value of it started to grow with maximum value.For tokens I would say most of an ICO  was rewarded of it once  the ICO Project was done succesfully.They differ its other but they are all tbe best cryptocurrency that held for online earnings.

Personally, I'm for altkoins. They are more trustworthy to me than tokens. And I think I'm not the only one. Just tokens are very similar to the pitiful resemblance of coins.

These things do not need to be opposed. They have very different purposes! Coins are created as a universal means of payment, tokens are needed for internal circulation of individual projects, or they can be replaced.

Tokens and Altcoins are almost same although i am bit inclined towards Tokens as we can buy them cheap and earn sometime from bounty.

There are different types of tokens, beginning with those that exist only for payment of services as an internal currency of the resource and end with those that are in the exchangers.

I think a couple people in here have given viable explanations to the difference between altcoins and tokens but, if I am honest, I think it is another term which the crypto community is just throwing around willy nilly.

Airdrops is another one. . .

The main difference between coins and tokens in their structure: coins are separate currencies with their own separate block, while tokens act on top of the block, which facilitates the creation of decentralized applications.  The main purpose of the koin is to fulfill the role of money: to be a unit of calculation, a store of value and a means of transfer.  Tokens offer functionality exceeding digital money.  They can be used to conduct community voting on key business decisions or even technical changes on the platform.  Crypto-currency helps to transfer value in the accepted way (like physical money), while tokens can be used to solve tasks in a blockchain...

That is a terrible way of copy-pasting.Reported.

@kaeluxdeuz : You gave a very nice explanation which is understandable without getting into too much complex stuff.I have one doubt (if you get the pleasure of answering). Can I fork other chains from a forked chain ? For instance,I have derived a token (smart contract ) from ETH and I wish to further start a new chain from my derived chain,how feasible is this ? Technically,I'm not running on my own chain so I must not be able to derive chains right ?

We are on the same page except that tokens can also called altcoin. Better differentiate it to COIN and TOKEN so you will not be confuse the difference of the two categorization.

Altcoin and tokens both are similar, just the difference is about hierarchy . Altcoin has their own separate block chains while tokens are working on a single block chain platform. Both are convertible to other crypto currencies. Also, prices of both coins and tokens are fluctuated as per the rise and fall of market

Atcoins and token are mistakenly used  interchangeably by most people but there is a difference between the two crypto currencies .The main difference between them is in their structure altcoins are separate currencies with their own separate blockchain while tokens operate on top of blockchain that facilitates the creation of decentralized applications. All cyrpto currencies other than bitcoin are alternative to it.

When you see the money you will understand differences Just trust in tokens , follow Altcoins.

you can treat all of them as cryptocurrencies.

tokens are the ones that apply on another blockchain like NEO, ETH LSK etc which are alts since they have their own Blockchain.

no matter what the difference between the two is the most important is where we can take a good gap to be invested then it will be fine..

yes, I guess this is just your opinion. basically the altcoin and token are the same. the basic equation is derived from crypto.
there are many different opinions, I do not bother with the choice of people to say it.

yes coins is really different from token, the thing is, Altcoins is not only coins, it can also be a token because Altcoins means Alternative Coin which mean All coins/token which we use beside bitcoin. That's why in this forum, its only compose of Altcoin Section and Bitcoin Section.

Never thought that the two are really different. I consider Altcoin as those coins other than Bitcoin and Token are those coins that are used in ICO's or coins that are not in the market or exchangers yet. Thank you for making this thread, its quite informative for someone like me.

Tokens and altcoins are both cryptocurrencies that used digitally . Phenotypically they seem to be identical, but in fact there something differs from one to another :
Altcoins ( which are alternatives to BTC ) use their own blockchain which has been derived from BTC blockchain ( which is open source code )
Tokens use other's coin blockchain ( such as Eth, OmiseGo...) Which is translated by the simplicity of their creations ( no need to costumes a given protocol )

You have a point.For me they differ for the groups and which is might be more directed to bitcoin.In the group altcoin was nearly been apart from bitcoin in terms ofranking.Then the tokens was a next level of grouping bit they bought interesting as a crypto world process.

The main difference between Alt coins and tokens lies on their structure. alt coins are separate currencies with their own separate blockchains while tokens operate on top of a block chain. modifying codes from a particular protocol is not needed when creating tokens while Alt coin creation goes through a complicated coding process

The main difference is the way they are structured. They have a few difference which i will mention below.

Altcoins are a digital currency similar to Bitcoin, and the term stands for alternative to Bitcoin. altcoins are created by diverging from Bitcoin consensus rules or by developing a new cryptocurrency from scratch. Most popular altcoins use the same fundamental building blocks as Bitcoin. This approach is relatively easy to carry out because Bitcoin is a free, open source platform. When an altcoin forks at the blockchain level, an alternate system of consensus rules must be used and the coin will have an entirely different distributed ledger. The same is true for altcoins built from scratch. Some altcoins have different monetary policy rules built into the currency to encourage different uses and treatment. Policies such as minimum spend, or positive or negative interest on coins stored, can encourage or discourage hoarding. Policies for coin mining may function differently from Bitcoin, as may the number of coins paid out per new block mined. While some altcoins can be attempts to enrich founders and offer little new, many have found niches because of way their differences encouraged new miners and uses. Since Bitcoin's inception there have been upwards of 500 altcoins created. Litecoin, Dogecoin, Blackcoin, Freicoin, Peercoin, Vericoin, Myriad, NXT are just a few examples of altcoins.

Tokens are a representation of a particular asset or utility, that usually resides on top of another blockchain. Tokens can represent basically any assets that are fungible and tradeable, from commodities to loyalty points to even other cryptocurrencies. Creating tokens is a much easier process as you do not have to modify the codes from a particular protocol or create a blockchain from scratch. All you have to do is follow a standard template on the blockchain - such as on the Ethereum or Waves platform - that allows you to create your own tokens. This functionality of creating your own tokens is made possible through the use of smart contracts; programmable computer codes that are self-executing and do not need any third-parties to operate. Tokens are created and distributed to the public through an Initial Coin Offering (ICO), which is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development.

A token is a molecule of all crypto market. It is an asset unit that acts within its own blockchain or as an add-on for an existing one. A token can act as a full-fledged means of payment, in other words, be an altcoin, and an asset that provides some functionality within the network.
Altoquine is any token except bitcoin, which uses its own blockchain or a fork of an active blockchain.

The main difference between altcoins and tokens is in their structure; Altcoins are separate currencies with separate blockchain, while Tokens operate on a blockchain that facilitates the construction of hierarchical applications.

I think that the markets of coins and tokens are now very much correlated. When everything falls, there are no growing coins or tokens.

competition between them I think follow the token etherium and bitcoin
if both are down then everything will go down too but if both go up then everything will go up.
but that is seen from the movement between the two.

There isn't much difference between the word altcoins and tokens. Altcoins are those which can be used as an alternative to bitcoin whereas the word token is often used when talking about the initial coin offering of certain coins until they are not used on any exchange site so you can call tokens a preliminary version of altcoins.

I just want to verify if all of us are on the same page about the difference of altcoins/coins and tokens. If you are using https://coinmarketcap.com/coins/ as a reference you will be able to observe that cryptocurrencies are actually divided into two, coins and tokens. Leading coins that we have are of course Bitcoin, ETH, Ripple, etc while the leading tokens are EOS, TRON, tether and Vechain. Though these cryptos could be converted to another, they are different in a sense that coins do have their own blockchain while tokens are derived from a platform(ETH, Omni, NEO)