Topic: Some mistakes most people (especially Newbies) about coins and tokens. - page 2. (Read 332 times)

Yes, I agree with you.
That's what it should be and every learning that everyone takes is a good thing to have. Whether it's a serious thing or not, still it's a gained knowledge that every newbie must have.
There goes the technicalities and there goes the basic ones that you have addressed. It's relatable when we're also there as newbies before.

This is a good advice not to fall on any fake projects, no matter what it is a coin or a token if they fall for this three category you should be more careful and analyze properly before investing. Scammers will take advantage of the trend in this market, so consider the new project as risky one since they still have no reputation and they can be a scam, look out for bsc network because there are so many scam tokens there.

I have my own definition to make sense of it all to which I have added some characteristics of the DeFi ecosystem. This is very important especially in the DeFi space and cross-chain world to make sure that you keep track of all the fees and costs and what you need to pay the fees and in what you need to pay the fees. I normally look in both the Altcoin announcements and Token threads to keep track of what's new and what projects people are working on. These are split along the lines of the formal forum definitions. For me when I look at them I say if the item is reliant on an underlying platform it is a token. Something on ETH = token, something on Poly = token etc. Some are hard to tell but if you think about it, a game or NFT related item is most probably closer to a token because it is reliant on the underlying platform to function.  Also, if you need to pay fees in the denomination of the underlying platform it is a token. If the item requires a token on an underlying platform it is a token. If the item is reliant on itself to propel the blockchain it is a coin eg. Doge, BTC, ETH.

You and me may know the difference because we have been here for a while and that is fine. However, there are some newbies that do not know the difference and because of that they may end up making wrong decisions. It does matter because in one of them you spend the coin whereas on the other it is the coin itself. Knowing the difference would mean that you could save some money when you are a newbie.

Like spending your first ever money on a token at ERC20 would mean that you would be spending a ton of money on the transaction fee and as your first ever investment, you should not do that. This is just an example and it could be expanded to other things, just knowing these two and how they are different could save newbies a ton of money.

Hmmm.... maybe this is not so important for people but i really appreciate the way you wanna try to tell this knowledge to the newbies who didn't know about this. Basically, it's not a big problem to call something a token or coin but as long as he understood the context. I see that some people may not know about the difference between coin and token. The only thing that newbies don't know about is how they must call something that builds on its own chain or become an asset. This may help for some members here and that's good to see your thread exists right now as an educational thread.

I think it's good to have conversations like this since it will help people understand the basic better. In those days there are a lot of scam and fake stuff so coming and discovering the basic is a must.

It is important to know the difference between a token and a coin because you should always know the project that you are planning to invest in. What are they doing, what is the team, what are they trying to achieve, how are they trying to achieve those things, how are the tokenomics, how defined and thought through is the road map and so on. I also have to say though that it is not always true that a project that is making their own project and therefore also their own coin is automatically better or more ambitious than a project that creates "only" a token. It' definitely true though that alle meme-coins (aka shit-coins) are only tokens because they are just trying to make some quick money with zero effort.

Good introduction for newbies, but actually newbies haven't reached that point yet, mostly they just see the growth rate of coin/token asset in the marketcap and they are ready to dive in. Only when they are in the crypto world for a while will they learn more about the type of coin or token they are after. By the way, good information by the OP, thank you for writing here.

It's not that easy to trust a new crypto project this day so it's a must for newbies to do deep research, scam projects have different ways to achieve their goals that's why we need to be careful.

1. Make sure the project you are into is audited
2. Be extremely careful around projects with anonymous teams.
3. Also metaverse and meme coins are the most popular right now that's why you need to be careful with new meme and metaverse projects.

     This is good knowledge but not something that would kill a person in this industry to not know. Great job though for pointing this out since I seem to have struggled a lot in explaining to my peers about the difference between the two when they ask me about it. Lol. Kind of embarrassing to think that I have been in this industry for quite a long time but just found out about this. Still though, I stick with the thought that this is good knowledge but not vital. Anyway, knowledge is good regardless of significance.

Newbies will not care so much about this and i believe it but at least your thread very useful as an educational thread for the newbies. The differentiate between token and coin can be seen from whether it's using its own network or not. Some people who have been active in the crypto known about the different but it seems like newbies are still confusing about this. Sometimes the developers didn't even know about this too.

I just realized this and with this sentence I actually got dizzy with the right answer for it
But indeed their characteristics are now more calling it a coin but indeed if we look at the format of their wallet it still looks like the ethereum erc20 network it can be said to be a token.
I will find something new about this

True, But on the other hand this knowledge must remain if they really want to be in crypto because of course learning must come from the bottom first before leading to more serious ones.

Well thank you for the clarification, because to be honest that token and coin is actually a very common words especially when someone wants to address a project around the space.

But surely people will still used the same way in my personal opinion, wherein its either from the platform or in the blockchain because both words seem there's no big difference and has one meaning only when it comes to addressing a crypto project..  

Yes actually its like that. But there are some who still uses erc20 version of those Ive mentioned on let say some dex on eth network means they can address their project as token yet until they literally used the native network of the upgraded project. Right?

It's like in general discussion whether you call it a token or a coin, they're both considered altcoins. And that's what the majority is pointing out whenever we're talking about a coin or a token.

It's true, still an additional knowledge for those that don't know it yet. But there's no issue whether you call it either way as long as you're pointing them out as an altcoin.

I guess we can already consider them as coins because they already have their own network, the project will run on their own network not on another network, for me that's the basic definition and therefore it's easy to determine the difference between a coin and a token.

For example, BNB was an er20 token before, now they are already a coin because they have their own network.

How about those tokens that are erc20 before but got their own native network now. Confuse if they are considered as coin now but the format of their wallet still looks erc20 of ethereum network. Perfect example of this are fantom and polygon. Since their supported wallet can be your eth wallet as well. Unlike avalanche which have own chain since their wallet start with avax-1 bla bla. But they supportrd the c chain of ethereum for expansion but they can interchanged it via their platform. So again, are these still can be called coins or tokens?

I learn about token with this post: https://bitcointalksearch.org/topic/definition-of-tokens-2251834
That explain more for me. short, dense and clear.

Sometimes in some cases in the discussion of a project sometimes I am always confused by the mention of some people about coins and tokens, Actually it is not really a problem but indeed when things like this are not fixed from the start then things like this can cause misunderstandings and I I also initially started to misunderstand about these coins and tokens.

COIN
There are several things that I found but so far I can conclude that the coins are actually built by the blockchain protocol because of that coins are still called native because they are genuine crypto assets in the blockchain network.
The functions of these coins are of several kinds, including as a medium for payment, besides that they are also used as investment/trade tools and as a guardian of the sustainability of the blockchain network that they stretcher.

TOKEN
They are assets that are built on the blockchain network belonging to other parties (I call them entrants because in the previous coins I referred to coins as native assets). Simply put, this token comes from a platform that was founded on a blockchain network that is more intended for ownership of an asset.

Actually, things like this may not mean much but it's not wrong to know things like this so that we don't mispronounce coins and tokens