Topic: Some mistakes most people (especially Newbies) about coins and tokens. (Read 329 times)

I was only able to distinguish tokens and coins recently. because before I thought it was the same thing.

although the difference is clear. but for beginners like me, things like the difference between tokens and coins are sometimes confusing when you first enter the crypto world. topics like this I think are more useful for beginners. because beginners need to learn something starting from basic knowledge.

In my case, I profited more on coins than tokens because creating tokens is easy than coins. There are lots of bounty projects that are offering tokens as rewards but they really worth nothing compared to bounty project that offers coins where about 90% of them are legit based on my experience. Now, I don't know the case and if you have those two choices, it's better to choose rewarded by coin than token.

Looks like I don't know something. It is possible that non-cryptocurrency tokens have some other definitions, but as far as I know, it is precisely cryptocurrencies that are made on smart contracts that are called tokens. If a cryptocurrency has its own blockchain, it is called a coin. As far as I know, there are no exceptions to this. However, if I am wrong, I would appreciate if you could give some examples.

It still depends, coin or token, it depends on the value of the project itself. You can't say that a coin is always more valuable than a token. Because there are tokens that are valuable than a lot of coins. Just look at the top 10 in market cap, how can you consider BNB in this category? It is identified as token here. Whether, coin or token, their value depends on how the project is performing in the market and how they are influencing the crypto community via its scope and usage.

this is kinda right, so many newbies seems misunderstand the difference of altcoins and token like you have already mentioned, but putting aside the fact that altcoin and token in itself differs, these misunderstanding coming from the fact that even
if the definition of coins and tokens isn’t the same, they are still being called altcoins regardless, in category of investment these two things stands in the equal standing and most of the newbies doesn’t really care regarding the technicality of their investment.
the only things that they did care is that the project brings good potential of great ROI in the long term and no more, and just my 2 cents, thinking coins and tokens as the same entity is quite fine if the only thing that they did is just investing.

That's a good knowledge about the different between coin and token. I'm sure that not so many newbies in the crypto intend to learn about the different between both.
People may not understand the different between both but this mistake was not so big caused by even when people called a coin as a token and a coin will always be a coin. it doesn't matter whether they have called this as token and coin but this may give people the new knowledge about the different between token and coin. I'm sure that people will be aware about this after seeing your thread.
This must be also made in the beginner section as well.

Simply put, a token represents what a person owns, while a coin denotes what they're capable to own. Additionally, everyone has used a token at least once in their life even if not in this form. For example, your car title is a token.
Tokens can eventually become coins when the project develops its own blockchain and migrate their tokens to the new blockchain as a coin. Successful migration cases include Binance Coin (BNB), Tron (TRX), Zilliqa (ZIL) which previously existed as tokens on the Ethereum blockchain.

Actually, this is not very necessary information, but knowledge doesn't hurt. Everyone can be hesitant about this subject, and in this respect, it is a very good sharing. I don't care about these concepts, but others may pay close attention 

From here you can see the difference between the two. Coins run on networks and blockchains that have been created, for example Bitcoin and Ethereum, these are coins that have different networks, one cannot send Bitcoin to an ethereum wallet address.

Different with Tokens, tokens created on the Ethereum network, for example, with the ERC20 standard, users can send tokens according to the standard token in a wallet address that is compatible with the token standard.

The distinction between coin and token is blurred and definitions are constantly evolving, the name token may be a misnomer as many often use the term 'coin', so careful evaluation of a token or coin is necessary before dealing with it or buying it.
for those who have been in this industry for a long time, everything starts from beginners and like beginners now can't tell the difference between coins and tokens, and over time we all realize the difference because any language in this forum we must know the intent and purpose so that we can bring beginners to be smart.

One of the things for which a new project or reliable tokens should be trusted is that it has a thread here in bitcointalk, if the project has a thread, it is easy to deduce if it can turn out to be a scam or not, also with the simple fact of putting a note in the reputation is enough to trust or not in a project.

Currently there are many projects, some pass the KYC requirements, which is something that can be the order of the day and can be achieved by tricking the system, other investigation options can also be clouded by the things they say or do, if the project does not has no type of regulation or that at least its token can be listed on an exchange like Binance, it is not trustworthy, at least for me.

But, I believe to become more knowledgeable, it should start in small things like the one we are discussing now. If you know the differences between a token and a coin, you will be more familiar with the coins that you are going to pick and that can help you win your trades or investments.

It is okay for a newbie to make a mistake because they are still a newbie but it would be funny if we old people in crypto still did not know these simple things? A newbie can laugh at us once they figured this things out. It is okay to make a mistake but what is not okay is that if you let those mistake happen when you know that you can do something to correct it.

it's also good if you can provide detailed examples which are tokens and coins? so that the more clear and detailed the information you provide
it is true that there are coins / tokens beginners often call it the same but maybe with an explanation from you beginners can better understand and know the basic characteristics of crypto currency

Learning is important and we shouldn’t skip the basics, they are as much important as the advanced or secondary part of whatever that we are learning.

I believe that lots of newbies wouldn’t know about this, and would need someone to clear them that coins and tokens are two different things in the market, and not the same as most of them would think. That way when they are making a post, they would know which to use, and same thing as when they are reading a post and they see any of the words being used, they would be able to know that both of the words have different meanings.

Actually I don't really know the exact difference between coin and Token, but this explanation was not clear enough to make me understand, in fact I am totally confused and u really want to know more about this. Pls can shade more light?

This happened to me some time ago because I am still quite new to crypto so it really confused me and there was one time when I sent my BNB from one wallet to another because I wanted to buy a token there which I should have sent BEP20 but I even sent BEP2 there which made me have to pay extra even though it wasn't too big because it was only a small nominal but for a beginner like me, this kind of thing of course makes a loss
As long as this is useful for continuity why not
At least with things like this I can add to my insight because I often read, especially in this forum, many people often say that beginners usually only follow and this is what makes them wrong, at least by learning from the beginning I will not be like those who participate in the wrong thing because I've studied before

Yes, it's good to know the difference as someone in the industry but it's not necessarily a big deal not bearing it in mind. To be honest with you, misplacing their meanings or not won't make anyone a better trader. It reminds me of a story I heard of a wealthy man who owned several cars but couldn't differentiate which was which. He didn't know what model or make of cars he drove. One day his driver said to him – You own all these cars and you don't even know their names? Shouldn't that bother you?" He proudly responded, –" Well, it doesn't matter provided I can buy them and you can drive them." Knowing how to trade those tokens or coins is more important than merely knowing which is which, and I guess that's why a lot of people necessarily don't pay much attention to the difference. 

Even if this doesn't mean so much for people but at least you do tell the newbies about the knowledge that you had known. You must believe as an educational thread that your thread was not totally useless at all and you give some newbies new knowledge about the differences between coin and token. The newbies keep calling coin token caused by they are very familiar with a token instead of coins. They even call ethereum a token but this may be some not for all.
Sometimes people are using the thing that makes them all feel confident with it. that's why token or coin didn't matter a lot.

Not bad that you took out your time to point out the mistake that a lot of people have been making in this forum, at least it wouldn’t be bad for those who don’t know it to learn today and avoid making such a mistake, no knowledge is a waste. I do notice that a some of the people do make that error when they are making a post in the forum, they would be talking about an asset and they would say a ‘coin’ and on the same post they would also refer to that same asset as a ‘token’.

I believe that the mistake is because they don’t understand yet that the both of them are different. I do come across it and ignore, but it's good that you pointed it out for those of them to learn. Example of tokens are the ERC-20 tokens .

I see now a lot of metaverse meme projects with anonymous teams of course they are one of the scams with current market trends I will not make investments that are not clear because no matter what the risk of course we are in charge, we can simply avoid the project that is not clear.
I've seen a growing number of successful metaverse projects listed on Coinmarketcap and every time I see their team is anonymous with a cartoon image that doesn't include a profile.

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