- Most people confuse cryptocurrencies with crypto tokens
- Cryptocurrencies have their own blockchain, whereas crypto tokens dont
- Tether is a crypto token built on top of open blockchain technologies
As more people across the world are warming up to investing in cryptocurrency, it is important to keep oneself abreast of the various terms that define the ecosystem. Given that cryptocurrency is a relatively new mode of financial transactions, it is easy to get confused with constantly emerging information about digital assets. One common error that most people make is confusing cryptocurrency with crypto tokens. While they may appear similar and are an intrinsic part of the crypto markets, they are different from each other. Both are digital assets, however, cryptocurrencies have their own blockchain. Meanwhile, crypto tokens are built on an existing blockchain.
Here are some popular crypto tokens that you should know about:
Tether is a crypto token that is “built on top of open blockchain technologies.” By doing so, it leverages the security and transparency that open blockchain technology provides. It converts cash into digital currency and is a stablecoin. Stablecoins are linked to an asset, most popularly the U.S. dollar, which are not volatile in nature.
2. U.S. Dollar Coin
U.S. Dollar Coin (USDC) is an Ethereum-based stablecoin. The