A recent survey by investment firm Alto revealed that millennials falling in the age group of 25-40 years are looking at crypto assets as an instrument for long-term savings. Crypto coins have a major share in this segment. These are digital assets having their own or separate blockchain. In addition to bitcoin, crypto coins include Ethereum, Solana, and Polygon. These can be exchanged for other coins. Their market value is also high. These coins have better security as they are encrypted and secured on blockchain networks. Information about this is available only to the sender and the receiver.
Crypto tokens originated from already existing blockchain networks. It is a sub-category of digital assets. For example, the Ether blockchain is the native cryptocurrency of Ethereum. In addition DAI, LINK and COMP are also crypto tokens created on the Ethereum network. Crypto tokens can be used as funds for transactions. Along with this, they can also be used to buy goods or pay gas fees. These are used to activate features on decentralized applications (dApps).
It is important for investors to understand the difference between crypto coins and crypto tokens, which can help them in making investment decisions in these digital assets. The decline in the crypto market over the past few months has had a major impact on the prices of both crypto coins and crypto tokens. An example of this is bitcoin. Bitcoin touched a high of around $69,000 in November last year. Its price has dropped to a little over $20,000. The decline in the crypto market has been due to the Federal Reserve in the US and the Central Bank in some other countries raising interest rates and some other reasons.
Cryptocurrency prices in Indian exchanges
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