Connect with us

Crypto

Which is better: token or coin?

Published

on

token or coin

Swapping coins for tokens can be a confusing decision, so here are some factors to consider when deciding the right choice. There are many benefits to using tokens over coins. They are worthless, fluctuate less in value, and can be traded with other cryptocurrency holders without subject to the high fees that exchanges charge on coins. Tokens also provide more liquidity than coins.

What is a token?

A token is an asset incorporated on the Ethereum blockchain. Tokens are used to pay transaction fees for services or goods rendered by that company or individual. Some examples are Digix, Augur, Golem, FirstBlood, ICONOMI, Melonport, SingularDTV. Most are ERC20 tokens built on the Ethereum platform.

Pros and cons

  • The pros of tokens are that they are worthless than coins, yet they can be used to buy goods. This means the price of the token will not change drastically or suddenly like that of a coin.
  • You can buy, sell, or exchange tokens for another cryptocurrency without worrying about high fees.
  • The token’s value is also more transparent since it represents a service or product rather than what the developer thinks it will be worth.
  • Tokens also provide more liquidity since you can trade them with other individuals who own Ethereum and cryptocurrencies to purchase goods and services from different companies without going through an exchange. The only drawback is that fewer companies are accepting them as payment compared to coins.
  • Since few companies are accepting them, your token might not have many places to spend it. This means the value of the token will also be less since it is not used as much.
  • Another problem is that you have to go through centralized intermediaries to exchange your tokens for cryptocurrency or vice versa.

What is a coin?

A coin is a cryptocurrency built on a separate blockchain network. Coins are typically mined with specialized hardware ASICs created for that purpose. They can be traded on exchanges or directly between holders using wallets outside the leading crypto trading platform needed for exchanges of tokens where you pay gas fees to trade with an exchange now.

Pros and cons

  • The pros of coins are that they are worth more than tokens, fluctuate less in value, and can be traded with different individuals without using an exchange.
  • The coin’s value is also more transparent since it represents an asset in itself rather than being associated with a specific token. Because it is on its blockchain, you can have complete control over your coins which does not apply with tokens.
  • Also, the coin comes with added security features that tokens do not have.
  • On another note, some people believe that coins will eventually replace tokens since so many coins are being developed on the Ethereum platform. These coins can also be traded on exchange platforms, but it does cost you gas fees to do so.

What is a Decentralized Application or Dapp?

A decentralized application (or a Dapp) is a web application that runs on its independent network and uses the Ethereum blockchain as the leading platform for operations. It does not interact with any central servers, and it can interact with other dapps present on the Ethereum network. This means that owners of tokens/coins will gain more value as they become famous as decentralized applications used by many individuals and companies as a value store for payment transactions.

How to choose the right coin or token?

If you want to invest in a company, you have to know how their tokens can purchase services from them. This means you have to see how the tokens are being used and whether they are worth investing in or not. Suppose you know a company’s website that simply shows an address for sending cryptocurrency. In that case, it is likely a token rather than a coin because most coins present on exchanges show market values and prices along with charts for tracking their costs over time. There might be some exceptions with some tokens showing price data on their website.

If you want to use tokens to purchase services, then go for it. If you wish to invest in a company, then choose coins over tokens.

What are the wallets for?

Most people in cryptocurrency use wallets to store, manage, and trade their cryptocurrency. Some good tips to remember when choosing the right wallet are:

  1. Try to find a wallet supporting multiple coins (if you want to swap cryptocurrencies) because it will make it easier to exchange one coin for another.
  2. Choose cold storage wallets hidden from access by outside people or programs that can access information on your computer or mobile phone without you knowing about it. This is especially crucial if there are hackers who are after your cryptocurrency wallet address. The safest storage option is paper wallets.
  3. Choose wallets with security features like two-factor authentication (2FA) and biometrics like facial recognition, fingerprint, or voice identification. Also, look for open-source wallet platforms to ensure that there are no backdoors present in the code.
  4. If you want maximum security, then use a cold storage hardware device that will cost you more but store your cryptocurrency offline so it cannot be exposed to hackers or your computer or smartphone.
  5. Keep in mind that the best way to store cryptocurrency is in cold storage hardware devices because it is offline and can be exposed to hackers much less than hot/online wallets where you have no control over your private key.

Conclusion

There are many coins and tokens to choose from, and they each have their pros and cons. It is essential to know what type of cryptocurrency you want before you make a decision.

Even though most coins seem like a scam, you should still invest if you believe in the developer who has put the work into making it happen. If you choose to buy a coin or token by accident, find out why it is used first before investing in it.

Continue Reading
Click to comment
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Crypto

Top 5 Performing Altcoins In2021

Published

on

Top 5 Performing Altcoins In2021

Alttcoins are an umbrella term used to refer to cryptocurrencies that serve no identifiable purpose in the crypto community. The value of any shitcoin is based solely on speculation and most of them turn out to be complete failures. Many developers create shitcoins for different reasons and publicize them in the hope that investors will buy into the vision for the company and purchase tokens in grooves but this is rarely the case. Most coins go to zero after the first price rally and some developers might even rug pull the project. It is important to know which shitcoins to invest in before placing your funds in any project. There are a few shitcoins that performed well in 2021 and we want to take a look at some of them in this article.

What Are The Top Five Performing Alttcoins In 2021?
Shiba Inu (SHIB)

Shiba Inu is the 11-largest cryptocurrency by market value and they gained this position in the space of one year. This meme coin tagged after a Japanese hunting dog has gained recognition from US gold buyers and other reputable investors. It witnessed a 5 million percent increase in the last few months and investors have speculated the value to rise even further in the next few years. Shiba Inu is listed across many centralized cryptocurrency platforms and this means you can trust the coin

Safe moon

Safe moon launched in March 2021 and it has a market capitalization of 1.3 billion dollars as of (September. 2021). Safe moon rose over 20,000 percent within the first few weeks of its release. However, it also lost 80 percent of its value shortly after this period. Safe moon is designed to be a medium of exchange like Bitcoin and the developers regularly control the price to keep it valuable. Safe moon is speculated to experience another bull run in the coming months.

Dogecoin

Dogecoin is a meme coin that gained recognition from Elon Musk in 2021. Since its popularity spiked in the market, investors poured more funds into the project and it has seen a steady increase ever since. The price of dogecoin has skyrocketed over 12,000% since January and speculators predict it could rise further in the coming months. It is currently priced at 27 cents (October 2021) and speculators say it could rise as high as 1 dollar by 2025.

Dogecoin is listed on Bitcoin loophole UK, Binance, Crypto.com, and other major cryptocurrency exchanges which makes it safe to trade and hold over the long term.

Redfox (RFOX)

The REDFOX Labs created RFOX to service Southeast Asian markets with scalable blockchain technology. It describes itself as the first blockchain venture builder in southeast Asia and it has witnessed significant acceptance in 2021. The current price of RFOX stands at 0.11 USD and it records over 3.5 million trading volume every day. It is listed on centralized exchanges which makes it a bit safer than other altcoins.

Wakanda Inu

Wakanda Inu is similar to the Shiba Inu project. It is an African meme token that has gained traction all over Africa and the world. The coin was launched in early November 2021 and its steady price increase and robust community make it a choice shitcoin to invest in. However, the price volatility has not played out and it is still early to tell if Wakanda Inu will be a success or not.

Summary

If you want to invest in altcoins, it is important to do your research and make sure the project has a higher chance of success than failure. Also, you need to invest only what you can afford to lose because shitcoins are volatile and their prices can easily drive down to zero.

Continue Reading

Crypto

Companies that are Embracing Cryptocurrency

Published

on

Companies that are Embracing Cryptocurrency

What started out as an internet experiment, only somewhat known in underground internet communities, has now blown up to become a huge cultural force. Bitcoin, and cryptocurrency in general, has taken the world of finance and investment by storm, becoming, by far, one of the most popular investment choices, especially among younger generations.

In surveys, 70 percent of the American population now claims that they are either investing, looking to invest, or interested in bitcoin, or cryptocurrency. Not to mention, 25% of millennial millionaires have a large sum of their earnings invested into bitcoin, and an even larger percent of millennial investors have most of their investments in bitcoin.

Bitcoin is also becoming much more popular among artists, and musicians, some of which have recently started to accept crypto payments for their art, music, concerts, etc. Even Hollywood is becoming open to cryptocurrency, with films being released who accept cryptocurrency in exchange for tickets.

The popularity of Bitcoin, and cryptocurrency, is largely thanks to the numerous crypto trading sites which have emerged all over the cybersphere. Sites that make investing easier than ever before, thanks to their user-friendly interface, and the investment tutorials many of them offer to new investors looking to get a piece of the pie. On top of that, sites like bitcoin-billionaire.net use state-of-the-art, military grade encryption technology to keep their users’ personal data and information safe. Most of these websites have open reviews, which will show tens of thousands of satisfied customers, so if you are curious to get into the world of crypto trading, head on over to one of these sites, look over their reviews and start your journey into the world of crypto.

But, of course, with cryptocurrency’s massive increase in popularity, companies are beginning to get wise to the future, and have started accepting crypto-based payments. Many believe that in the future, more and more companies will open their eyes to the potential of cryptocurrency. For now, the number of companies who have accepted crypto is respectable, and we are going to list just a few of them in this article.

Starbucks

Last year, Starbucks tested their first ever digital wallet and, to the surprise of many, it was a huge hit, with over 500 000 users accepting the prototype. Thanks to the success of the test, customers of the coffee chain can now use the Bakkt app to pay for any drinks, sweets, and any other goods Starbucks has to offer.

Tesla

Elon Musk, the CEO of Tesla, has been a long-time supporter of cryptocurrency, and Bitcoin especially. In February 2021, Tesla, as a company made a $1.5 billion investment in bitcoin, and announced that they will soon be accepting crypto-based payments for their vehicles. This decision has recently been thrown into question, however, as Elon Musk himself has stated that until miners find a way to use renewable energy in order to mine bitcoin, the company will put bitcoin transactions on hold. Since efforts have been made by bitcoin miners to go green with bitcoin mining, the promise by Elon Musk seems to be coming to fruition sooner, rather than later.

Microsoft

There is no bigger commendation for cryptocurrency than the fact that the biggest tech company in the world is accepting bitcoin payments. Not only can Microsoft users use bitcoin to purchase a number of services from the company, such as Xbox Live, Skype, etc., but the company has also launched ION. ION is a authentication platform launched in March 2021, on the Bitcoin network, which serves to create digital IDs in order to authenticate the identities of online bitcoin users.

Continue Reading

Crypto

What are the Main Benefits of Using Ethereum for Your Enterprise?

Published

on

What are the Main Benefits of Using Ethereum for Your Enterprise

If you have a business, the world is wild, and you must innovate or perish. There are no two ways about this. One of the best ways of keeping the wheel of innovation running is adopting the latest blockchain technology, which has a very high potential to solve most of the challenges businesses face. A good example is instant payments, which imply that your clients do not have to wait for days, the way it happens with bank transfers. However, there is a challenge in selecting the preferred blockchain because they are so many.

In this post, we will look at one of the high-potential blockchains, Ethereum, and highlight the main benefits that you should anticipate for adopting it in your enterprise.

Important Facts about Ethereum

Ethereum was launched in 2015, about six years after the pioneer blockchain, Bitcoin, was started. At the time of launch, it looked like an extendable and more performance-based model of crypto compared to Bitcoin. It was designed to address the shortcomings of Bitcoin.

What makes Ethereum outstanding is its programmability, especially agreements that make it possible for transactions to self-execute. These digital agreements, commonly referred to as “smart contracts,” allow for limitless conditions, formats and can even call other contracts. This means that Ethereum, unlike Bitcoin, is not just a means of payment, but can be applied in a wide range of enterprise operations, including supply chains, trade finance, government registries, real estate, and energy grid.

When it was established, Ethereum was using proof of work (POW) protocol, but this model has come under sharp criticism, making Ethereum to look for an alternative. Now, the blockchain is in the process of moving to a proof of stake (POS) consensus system, which requires one to only have some stake on the network to qualify to confirm transactions and vote in the network.

What are the Benefits of Using Ethereum?

What are the Benefits of Using Ethereum

Ethereum was designed to be a low-cost and flexible platform for cooperation between different parties. When it comes to operations, Ethereum works as a public ledger, but it features additional layers that businesses can use to plug their operations for greater efficiency. Here are some of the main capabilities and benefits of using Ethereum.

●        Private Transactions: Your enterprise can achieve high levels of privacy in Ethereum by embedding its operations on the blockchain layers. Even when your standard operations, perhaps in a financial transaction, require the use of know your customer (KYC) protocol; the information is not shared by network participants.

●        Scalability: With time, you want to see your business grow, right? The new proof of stake (POS) targeted by Ethereum, custom block size, and gas limits make it easy to grow because it can handle hundreds to thousands of transactions per second. Newer technologies such as sharding and off-chain operations on the blockchain also give additional room for enterprise scaling to higher numbers of transactions.

●        Tokenization is Easy: Your Enterprise can tokenize any asset, from works of art to real estate, and make the tokens a commodity for sale. This means that you can break down otherwise monolithic assets to grow your line of products. In March 2021, Mike Winkelmann, commonly known as Beeple, sold a print for US $69 million as a non-fungible token. Another case of successful tokenization is the first tweet on Twitter, which Dorsey sold for US $2.9 million. You, too, can use this avenue to raise millions of dollars for your business.

As you can see, Ethereum is a blockchain and crypto on a steady growth mode and you have so much to benefit from it. Remember that for your business to implement it; you will need to understand how the blockchain works, have the right wallet, and a clear strategy. You might also want to adopt ETH for use in all services/ products or just a few. No matter the way you prefer, it will be a great idea to consider working with experts when adopting Ethereum.

Continue Reading

Title

Games9 hours ago

Different powerful weapons introduced in Destiny 2

Destiny 2 has gained popularity not just because of its amazing graphics and storyline, but mainly due to its wide...

Business14 hours ago

An In-Depth Analysis of Emergency Locksmith Services

Lock-related hassles are pretty standard, especially when everything you handle is going digital now. But, sometimes, it gets tiring to...

Games1 day ago

Why Satta King Online game is famous in India?

What is the fact of the Satta king game? Many people have different opinions concerning the Satta king online game....

Most Important Characteristics of Successful Marketing Managers Most Important Characteristics of Successful Marketing Managers
Business2 days ago

Best Marketing Ideas For A Shopify Store

If you have a Shopify store and are looking for unique ways to get your hands on a market share,...

How to Enter the CBD Industry With These 10 Steps. How to Enter the CBD Industry With These 10 Steps.
CBD3 days ago

How to Enter the CBD Industry With These 10 Steps.

Did you know that 64 percent of adults in the United States of America are familiar with CBD? That is...

Top 5 Performing Altcoins In2021 Top 5 Performing Altcoins In2021
Crypto3 days ago

Top 5 Performing Altcoins In2021

Alttcoins are an umbrella term used to refer to cryptocurrencies that serve no identifiable purpose in the crypto community. The...

Why Does Your Partnership Firm Need a Corporate Attorney Why Does Your Partnership Firm Need a Corporate Attorney
Law3 days ago

Why Does Your Partnership Firm Need a Corporate Attorney?

Most people start a partnership firm with the expectation of a longer life. But most partnerships are prey to disputes...

What is the Dirty Truth Behind our Trash What is the Dirty Truth Behind our Trash
Home Improvement4 days ago

What is the Dirty Truth Behind our Trash? How to Reuse, Recycle, and Reduce Waste?

There is a finite number of resources nearby us and it is hard to conserve them all because of the...

Golden Visa in Greece Opens the Door to Greek Residency Golden Visa in Greece Opens the Door to Greek Residency
Travel4 days ago

Golden Visa in Greece Opens the Door to Greek Residency

Greece Golden Visa Program has provided Greek residency for more than 9,300 investors worldwide. Including their family members, the number...

4 Signs To Look For In Your Personal Injury Attorney 4 Signs To Look For In Your Personal Injury Attorney
Law4 days ago

4 Signs To Look For In Your Personal Injury Attorney

If you were recently involved in an accident that occurred due to someone else’s error, seek compensation. You have the...

Categories

Title

Trending

0
Would love your thoughts, please comment.x
()
x