What is the primary difference between altcoins and tokens?

[parikhan]

Altcoins are cryptocurrencies other than Bitcoin, typically with their own blockchain, like Ethereum or Litecoin. Tokens, on the other hand, are digital assets that rely on an existing blockchain, such as ERC-20 tokens built on the Ethereum network. Understanding the distinction helps investors identify whether they are dealing with an independent cryptocurrency or an asset created within another blockchain ecosystem.

 

[Daruk]

Altcoins operate on their own blockchain, while tokens are built on existing networks, like ERC-20 tokens on Ethereum, offering distinct utilities within their ecosystems. This differentiation guides investors in assessing the asset's foundation and potential use cases.

 

[Lotus]

Altcoins are cryptocurrencies other than Bitcoin, typically with their own blockchain, like Ethereum or Litecoin. Tokens, on the other hand, are digital assets that rely on an existing blockchain, such as ERC-20 tokens built on the Ethereum network. Understanding the distinction helps investors identify whether they are dealing with an independent cryptocurrency or an asset created within another blockchain ecosystem.

Understanding the difference between altcoins and tokens is key for investors, as it distinguishes independent cryptocurrencies from assets built on existing blockchain platforms!