In the cryptocurrency landscape, people get confused between a token and a coin. At the basic level, token and coin are the same. They represent value and process payments. Besides, you can swap tokens for coins and vice versa. The key difference is its utility. Some markets don’t accept tokens but coins and vice versa. It is just like the key difference between traders and investors. All traders are investors, but all investors are not traders. Many cryptocurrency investors own tokens and coins.
The major difference between Dogecoin and Tether is that the former is a crypto coin, while the latter is a crypto token. To store crypto you will need a specific wallet like USDT [Tether] wallet, BTC wallet, or Dogecoin wallet. Different crypto wallets can be obtained from ZenGo X platform.
What is Dogecoin?
Dogecoin was designed as low stake, funny alternative for Bitcoin. Unlike BTC, it is calculated to be resistant and scarce to inflation. Abundant DOGE was created and this has attracted investors. Its current price is 0.0835 and the transaction speed is 33 seconds.
Dogecoin has been performing great and is regarded as the best crypto under $1. It revealed some bullish momentum last year and has the potential to reach an all-time high at the end of 2021.
What is Tether?
Tether was designed as a digital asset with a stable valuation. It is pegged with the US dollar. In theory, it is unaffected by crypto market volatility. It is a stablecoin and Ethereum token. Its current price is 0.9990 and the transaction speed is 30 seconds.
Investors looking to avoid volatility can invest in stablecoin and store it in their Tether wallet. It offers investors’ portfolio flexibility and stability. As Tether is secured with the US dollar, there are exchanges, platforms, and wallets that will offer a high-interest rate for storing USDT [Tether] on their platform.
What is a crypto coin?
Bitcoin is the first cryptocurrency that set a standard for coins. You can define a coin with the following characteristics.
- Operates on its specific blockchain.
- Acts as money.
- Can be mined.
What is a crypto token?
Crypto tokens don’t have a blockchain they operate on other crypto coins’ blockchains. Tether and other stable coins operate on Ethereum. Blockchain handles crypto coin transactions, while tokens depend on smart contracts. Tokens are a set of random numbers and alphabets that allow payments or trades to happen between users. Every blockchain applies a specific smart contract.
Crypto coins versus crypto tokens
- When Crypto coins are spent they don’t move but your wallet balance changes. When the token is spent there is physical movement, for example – in NFT [nonfungible token] trading the ownership change is handled manually. NFTs carry artistic or sentimental value, so they are just like utility tokens.
- Crypto coins represent digital currency, while tokens symbolize deeds or assets.
- Tokens can be purchased with coins but some tokens carry more value like an enterprise’s share. There are some limitations to spending a token. It lacks the liquidity that a coin offers.
Do some research on ZenGo X and gain knowledge about cryptocurrencies!
