Learn more about crypto with this collection
Understanding the basics of cryptocurrency
How to store cryptocurrency securely
Risks and benefits of investing in cryptocurrency
Digital coin uses
Digital coins are generally used the same way as real-life money in your wallet. For example, Bitcoin can be used to pay for goods and services all over the internet and often in real-world places too. You can store it for a long time or swap it for something of equal value.
Other digital coins, such as Ether, NEO, and DASH, can be used in different ways than just as a form of money. For example, Ether (ETH) is used for transactions on the Ethereum network. It is needed to send a token and fund the mining costs.
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Tokens
Token are not digital coins. Tokens are created on existing blockchains. The most common blockchain token platform is Ethereum and tokens from this platform are known as ERC-20 tokens.
There are also other tokens such as NEO, Waves, Lisk, and Stratis.
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Understanding how tokens work
Tokens are used to interact with decentralised applications that are built on top of different blockchains.
For example, Civic (CVC) is an application that keeps track of encrypted identities on the Ethereum blockchain. If you were to go on a foreign holiday, you'd need...
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Security Token, Equity Token, or Utility Token
- Security Tokens. Most tokens issued by Initial Coin Offerings (ICO) are security tokens. This is because the buyer invests their money in the ICO expecting a profit.
- Equity Tokens. It represents some stock or equity in the company that issues it.
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How tokens are created
Creating a token takes little technical ability, but it requires the developer to spend some native coins to the blockchain on which the token is being created.
For example, a creator will need to spend some Ether to create a token on Ethereum. This is used to get the miner...
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The purpose of tokens
Most tokens are used with decentralised applications (dApps). When developers create their tokens, they can be used to activate features of the application they were designed for.
Some tokens are created to represent a physical thing. If you want to sell yo...
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Digital coin definition and examples
A digital coin is an asset native to its own blockchain. For example, Bitcoin exists on the Bitcoin blockchain, Ether operates and functions on the Ethereum blockchain, etc.
Digital coins don't move physically when you send and receive them. They exist as data on a ...
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People who are new to cryptocurrency often confuse the term "token" and "coin". This guide defines the two terms and provides some examples for a better understanding.
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How do I buy cryptocurrency?
While some cryptocurrencies, including Bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoins or another cryptocurrency.
To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on ...
HOW DO YOU BUY CRYPTO ART?
- The NFTs used to buy crypto art are built on blockchain technology.
- Blockchain technology is also used for cryptocurrencies like Bitcoin, Etherium, and yes, even DOGE coins. The blockchain offers a secure, digital record of transactions.
- The...
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