HitBTC Token

Many beginners and even experts believe that concepts such as &#34;coin&#34; and &#34;token&#34; are very close in meaning and almost identical. But this is a mistake because these terms mean different things both from the functional and technical sides.CoinsCoins are a cryptocurrency that runs on their blockchain, which confirms transactions and ensures their reliability. Coins can be exchanged for each other, sent to other people, and received, and they are also divisible: 0.001 coins or less is a very real amount. Sometimes the issue (issue) of coins is limited by their creators. This is exactly the case, for example, with bitcoin (BTC) — there cannot be more than 21 million of them, and today more than 90% of the total volume has already been mined. Another example of a coin is the well—known Ethereum (ETH) or Bitcoin fork, Bitcoin Cash. Their main task is to fulfill the role of a digital currency.What is a tokenTokens are crypto assets that are created based on existing blockchain technology. They cannot be mined, but they can be received and transferred or bought if the last two if it’s provided by their creators.This is a non-crypto currency accounting unit designed to represent a digital balance in some assets. The token will become a currency only if it gets, for example, on a crypto exchange.In simple words, tokens are a unit of account with a function in the digital world — something like a digital receipt from the creator of the token that he undertakes to give you something.It can be compared to a token in an amusement park: you can ride a roller coaster or eat cotton candy with it, but no one needs it outside the park. Only, in reality, such a park can be, say, a cloud data storage with special functions, where the more tokens you have, the more disk space is available.Unlike coins, tokens are not able to work independently, therefore they are placed on top of the created crypto network and are managed through smart contracts. Special software is usually required to access tokens.According to their purpose, the following types of tokens are distinguished as:Payment tokens. They are used as a means for calculations.Service tokens. They are issued as a unit of calculation within a certain community (platform).Exchange tokens. They are used as fuel for conducting exchange operations and bring additional bonuses, discounts, and dividends to traders.DeFi tokens are an independent financial ecosystem where users can interact without the involvement of a third party.Application Tokens (App Coins).Stablecoins.Non-interchangeable tokens.For example, the <a href="https://hitbtc.com/hit" rel="noopener noreferrer nofollow">HitBTC token</a> (HIT) is a service token of the crypto trading platform. Its holders receive discounts on trading fees, low commissions for trading pairs on the exchange, and other benefits.In addition to the fact that the HitBTC crypto exchange has its own token, there are more than 800 exchange pairs - tokens and coins of all kinds, which we have listed above.Tokens do not have their platform, but function on the blockchains of other cryptocurrencies, therefore they are dependent. For example, a large number of tokens work on the Ethereum blockchain: <a href="https://hitbtc.com/omg-to-btc" rel="noopener noreferrer nofollow">OMG</a>, <a href="https://hitbtc.com/ppt-to-btc" rel="noopener noreferrer nofollow">PPT</a>, <a href="https://hitbtc.com/gala-to-btc" rel="noopener noreferrer nofollow">GALA</a>, as well as many others.Let&#39;s summarizeThe main difference between coins and tokens is that coins work on their own blockchain, whereas tokens are created based on an existing one.Most tokens are created to gain access to smart contracts and dApps, but they can also be used as shares, votes, and ownership certificates. They are usually generated during crowdfunding (ICO/ST). Crypto coins are a digital means of payment and are generated through mining or staking.<a href="https://twitter.com/hitbtc" rel="noopener noreferrer nofollow">Twitter HitBTC</a><a href="https://t.me/HitBTC_channel" rel="noopener noreferrer nofollow">Telegram HitBTC</a>

Token vs coin

HitBTC EXCHANGE

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