The most of the times in cryptocurrency area we use the terms Token and Coins. Those terms got lot of differences. That article will help beginners to understand the diferences
The most important difference is that the coin is using it’s own blockchain. On the other hand, token is using blockchain of another coin/platform.
To understand it easier I am giving the above example
- Ethereum is coin, KIN is token
- When you will buy Ethereum you will put it on your ethereum wallet
KIN is a token of Ethereum Blockchain. That means the KIN we will put it on an Ethereum Wallet and not at a KIN wallet. So in simple terms the steps to save your KIN token is the following.
- I buy KIN
- I put it on Ethereum wallet.
One more important are the fees when the transaction will be made.
In the case of Ethereum
- Transfering your ethereum to an other ethereum address
- The fee will get paid on Ethereum
In the case of KIN
- Transfering your KIN to an Ethereum address.
- The fees will get paid in Ethereum. If you don’t have available Ethereum you will not be able to transfer the KIN. Fees in ethereum you can find them with the term ”gas”
In the future we will explain you further more differences for the Coins and KINS. Those changes are the important which beginners needs to know