Enterprising Investor in this blog explains the difference between Crypto Tokens and Crypto Coins and how each currency goes hand in hand, and what drives the performance of each in the Cryptocurrency world as seen today. A token is a sort of contract that is based on a blockchain and a crypto coin is a native token of a certain blockchain. What solely drives the performance of these coins and tokens are how well they are performing on the market and how much is totally invested in these coins and tokens.

Do I think this is a good idea worldwide? No, but I don’t see crypto currency as a harmful product to the already existential banking systems. It is solely based on how it performs through an entirely different market and it is not provided by the government. There is no incentive to purchase a coin or a token and it has no effect on your own monetary funds unless you buy but of course that is on you.

Purchasing coins or tokens both have their consequences but they are both obviously a gamble. For one, tokens that just start up, investors face what’s called an “information deficit.” Which basically means there’s little to no financial data on the underlying business for them to make an ethical decision on whether to invest. This is also correct for coins which both are driven by their utilization. “The price of coins, on the other hand, ought to depend on the number of transactions occurring on the existing blockchains.” (1). Lastly, the similarities between the two are popularity and how it is being utilized.