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Author: Admin | 2025-04-28
Used to participate in the governance of a decentralized protocol or platform. They give holders the ability to vote on proposals, make decisions, and influence the direction of the protocol.Platform Token: Platform tokens access and use specific blockchain platforms or ecosystems such as Ethereum or Cardano. These tokens are used to pay transaction fees on the blockchain network. Popular platform tokens are Ethereum (ETH), Cardano (ADA), and Polygon (MATIC).Transactional Tokens: These types of cryptocurrencies are used for transaction purposes within a specific blockchain ecosystem. This type is used for peer-to-peer transactions and payments. Some of the most popular well-known cryptos are Ripple (XRP) and Stellar Lumens (XLM).Payment Token: these tokens are used as a means of payment for goods and services and are often fast and efficient, with low transaction fees. Examples of payment tokens are Bitcoin (BTC), Litecoin (LTC), and Bitcoin Cash (BCH).Exchange Token: Exchange tokens are created or issued by cryptocurrency exchanges and can be used to access features and benefits on the exchange platform, such as reduced trading fees or enhanced trading tools. Popular crypto exchange tokens are Binance Coin (BNB) and FTX Token (FTT).Crypto Coins vs TokensBelow are some of the differences between crypto coins and tokens:ParameterCoinsTokensDefinitionDigital currencies that operate on their blockchain.Digital assets are created and managed on existing blockchains.Purpose of useUsed for payments to buy products and to exchange money.Used for specific services or applications as programmable assets.ValueA coin’s value is determined by supply and demand.Tokens value is determined by the underlying asset or
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