One of the most talked about investment instruments of recent years. crypto assetsWith the rising trend of Bitcoin, it is again on everyone’s lips. Citizens, especially those who do not want to lose money in the face of inflation, often invest in crypto assets they hear from friends. But many do not even know exactly what they are investing in. he does not know.

Let’s put it this way, the things we invest in even your name We’re not sure. That is, crypto-assets, which today are thousands of species for many people, are often referred to as “crypto money”. However, this is a huge challenge for the cryptocurrency community. wrong. Because everything you buy and sell is not actually cryptocurrency.

Cryptocurrency (coin) and token are not the same.

Some things traded on exchanges like Binance are cryptocurrencies, while others actually are is sign. In the community, these terms are often used together. Actually this is not wrong. Cryptocurrency and tokens are very close assets, but they are also very close. they are far away. Let’s take a closer look at the features of cryptocurrencies and tokens.

Characteristics of cryptocurrencies:

• especially for them They have blockchain networks.
• a barter, that is like money They are used.
• on it’s own they are assets. They do not represent any other assets or services.
• To ensure system security to cryptography (encryption).
• It does not depend on any authority. with codes they are managed.

Yes, Bitcoin is indeed a cryptocurrency.

The features we left above, if you’re paying attention actually bitcoindescribes the . Therefore, we can accept Bitcoin as a real cryptocurrency. With this, Ethereum Like Bitcoin, it is a cryptocurrency.

Characteristics of tokens:

• They do not have their own blockchain networks. to another network they are connected.
• Playing games not only for money, but also on the platforms on which they are located, open access to services or they can be used to complete DeFi procedures.
• Cryptographic functions like in Bitcoin or Ethereum there is no.
• They can be managed by a private individual or a foundation. If you want today you can also create a token.
• to the lower classes They can also leave.

Most tokens are built on the Ethereum network.

Ethereum, the second largest cryptocurrency in the world by volume, is an invaluable asset to tokens due to its structure. is a blessing. Aware of this, teams prefer Ethereum when they want to develop tokens. For example, fan tokens from football clubs. FC Barcelona Fan Token (BAR)is a token linked to the Chiliz chain, one of the sub-chains of the Ethereum network. All the features we mentioned above are actually among those offered by FC Barcelona Fan Token (BAR).

How do we know if a crypto asset is a cryptocurrency or a token?

Suppose you want to invest in a cryptocurrency, but first want to know if it is a cryptocurrency or a token. The simplest thing you can do is access that crypto asset’s website, browse your whitepaper will be. If it says the crypto asset has its own network, it is a cryptocurrency. It is a token if it is connected to another network. That’s it to understand it’s that easy.

White paper which administrator?

If you are interested in the cryptocurrency community, you should get used to reading. The white paper, also referred to as “white paper” in some places, is the is the technical document. You know, if you buy an electronic device and there are brochures with pages of text in them, that’s what a white paper is. All the details about the respective project are written here. So what you invest in what is it you understand correctly.

• Editor’s Note: If you want to invest in a crypto asset, it is a good idea to read the whitepaper first. If you read the document very carefully and really understand what the team is going to do, you can easily find out whether the project is promising or not, even if you are not an expert. For example, you can participate in pre-sale programs or make long-term investments. One of the best investment advice that can be given in this community is to read the white paper.