The paradoxical appeal of transparency and anonymity inspired the creation of other altcoins, including Ethereum, Solana, Cardano and many more. All other use cases of token evolved with time. Crypto coins were a money replica: The sole purpose to launch Bitcoin was to replace fiat currency, which neither have been possible so far, nor the future is bright for this purpose. Each blockchain will have one associated coin and hence coins in general are a few, Subburaj said. All transactions of the coin are recorded in the blockchain and there are generally ways to mine coins based on the consensus algorithm. When you make a transaction with Ether, it is done on Ethereum blockchain, whereas Bitcoin transactions are done on its own blockchain. "Both are digital assets, and both have their uses," he added. Edul Patel, CEO and Co-founder of Mudrex said that crypto coins have their own blockchains, but tokens are built on already existing blockchains.
"They represent a utility whose growth and adoption will drive the price of the coin or token in future." Market experts said that if an investor wants to buy a product, coins are best and if it's a service then utility tokens can be used. Vikram Subburaj, Co-Founder and CEO Giottus Cryptocurrency Exchange, said that for an investor, both crypto coins and tokens behave the same way. On the contrary, some platforms may accept coins but may refuse to entertain tokens. There are certain things that tokens allow the holder to do, whereas the coins do not give the same freedom to the holder. At the basic level, the key difference between the two is merely based on their utility. Interestingly, a lot of users do not know even if they are buying crypto tokens or crypto coins.
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