Cryptocurrencies have their own protocols. They have their own networks. They have their own immutable ledgers. They don’t rely on other blockchains to work or exist.
Cryptocurrencies derives their value because of supply and demand. It is people wanting to have a particular Cryptocurrency that gives it its value.
Tokens are the currency for the platform that it is associated with.
Developer tools are needed to create tokens on top of the protocol layer.
The most popular protocol for tokens is the Ethereum protocol. These are called ERC20 tokens.ERC20 tokens are created using smart contracts, These tokens run on top of the Ethereum protocol Layer and require the Ethereum protocol layer for their existence.
Tokens represent value within the platform they are currency for. The token should fill out the value of what the product/service is worth.
For example if your application is selling pizza and the pizza is $10 then the token should have the value of around $10.
At the moment a lot of tokens have not found their real value as in many cases the platform is not fully functional and adoption is also low.
In summary coins are accepted as payment or used as a store of value whereas tokens are utilized on a platform and can be traded for coins.
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