What is the difference between cryptocurrencies and tokens?

The first point of difference between cryptocurrencies and tokens obviously points towards their definitions. Cryptocurrencies are the native currency of a blockchain network issued by the main blockchain protocol itself. The best example of a cryptocurrency is Bitcoin.

What is the difference between cryptocurrencies and digital assets?

The primary difference between the two digital assets in crypto space is that cryptocurrencies are native assets on blockchain networks. For example, BTC on the Bitcoin blockchain or ETH on the Ethereum blockchain is cryptocurrencies.

How are cryptocurrencies created?

One common way cryptocurrencies are created is through a process known as mining, which is used by Bitcoin. Bitcoin mining can be an energy-intensive process in which computers solve complex puzzles in order to verify the authenticity of transactions on the network.

What are blockchain tokens and how do they work?

Tokens — which can also be referred to as crypto tokens — are units of value that blockchain-based organizations or projects develop on top of existing blockchain networks. While they often share deep compatibility with the cryptocurrencies of that network, they are a wholly different digital asset class.