Despite being used to describe all varieties of digital or cryptocurrency, the term "cryptocurrencies" is frequently used interchangeably with "coins." They are frequently considered as such even though a majority of them—aside from Bitcoin—do not function as a unit of account, a store of value, or a medium of exchange.
Coins can be distinguished from altcoins, though. In addition to Bitcoin, all other cryptocurrencies that are viewed as alternatives to Bitcoin are referred to as altcoins.
Coins: Since coins are built on their own blockchain, they can be distinguished from altcoins. They serve as both the native token and the fuel or gas payment token on such a blockchain, while a blockchain might have the gas paid in a an alternative cryptocurrency Bitcoin on the Bitcoin blockchain and Ether, or ETH, on the Ethereum blockchain are two good models.
Building or creating a cryptocurrency begins with or follows the creation of a blockchain.
Altcoins: While these can technically be considered coins, they are all thought of as alternatives to Bitcoin, the original cryptocurrency. Apart from Ethereum, the majority of the original ones, also referred to as "shitcoins," were forked from Bitcoin. These include Auroracoin, Litecoin, Dogecoin, Peercoin, Namecoin, and Peercoin.
Nevertheless, other cryptocurrencies have their own blockchains, including Ethereum, Ripple, Omni, and NEO. some do not.
Tokens: In a blockchain, a token is a digital representation of a certain asset or utility. All tokens can be referred to as "altcoins," although they differ by existing on not being native to the blockchain on which they reside, but rather sitting on top of another blockchain.
We can move some of them from one chain to another because they are programmed to support smart contracts on blockchain networks like Ethereum. The tokens can run independently of a third-party platform since they are integrated into self-executing computer programs or algorithms. They can also be traded and are fungible. They can serve as a representation for commodities, rewards points, and even other cryptocurrencies.
The developer will need to adhere to a predetermined template while creating or coding a token. The blockchain does not need to be completely rewritten in code by the developer. All they need to do is adhere to a pre-established standard template. The process of creating a token is quicker.
Initial Coin Offerings, also known as ICOs and IEOs, were once the main ways to distribute and raise money for companies that were creating tokens. They can, however, be released without IEO or ICOs.
