Every day, we learn more and more about how cryptocurrencies work. However, this technology advances so much and has so many aspects that it takes time to keep up the pace. You may have noticed by now that people use different terms to talk about cryptocurrencies, with some referring to them as tokens. Other commonly used terms are coins or altcoins, but do they represent the same thing?
You might be surprised to hear this, but tokens and cryptocurrencies differ entirely. If you need clarification, we cannot blame you. Worry not, as this article will give you an idea of the difference between cryptocurrencies and tokens and which are the best ones to invest in right now in Australia. Let’s have a closer look.
Crypto Tokens vs. Cryptocurrencies
Every cryptocurrency is built on a blockchain, where the main difference between coins and tokens comes from. If a crypto uses another crypto’s blockchain, it is a token.
Let’s make an example here, so you have a better picture. Ethereum is a blockchain, and it has a native cryptocurrency called Ether – which is a crypto coin.
New cryptocurrencies that are programmed into the Ethereum blockchain instead of their ones are crypto tokens. The exciting thing is that Bitcoin doesn’t have this capability, arguably one of the main reasons Ethereum is so popular these days.
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The Importance of Tokens
It is much easier to create a crypto token rather than a new coin, so there are tons of interesting ones that you can invest in. Tokens will allow you to create a cryptocurrency without building an entire blockchain. As you may imagine, this is a big deal, as developing cryptocurrencies is more straightforward and less expensive.
What Cryptocurrencies and Tokens Can Australians Invest In?
Now that you know precisely how crypto tokens and cryptocurrencies work, it is time to get into the other important part. Australians seem to always be up-to-date with all technology trends, as they often join random sites to play their favourite games – pokies, and make deposits and withdrawals using cryptocurrencies. If you are entirely new to the crypto world, we can walk you through which tokens and cryptocurrencies you can invest in.
Tether Crypto: USDT
We begin with Tether, which is a stablecoin launched back in 2014. We describe it as a stablecoin initially designed to cost $1. So, unlike most cryptocurrencies, Tether has a stable value and is backed by fiat currencies. This means that its value is more consistent, so if you want to avoid the potentially extreme volatility of other cryptocurrencies, Tether is your choice.
USD Coin Crypto: USDC
Up next, we have another stablecoin, or as some call it – a digital dollar. USD Coin is pegged to another asset – which in this case is the US Dollar. Therefore, USDC always maintains a value of $1, so you can expect some generous rates on it. An interesting fact about USD Coin is that it became the first crypto token that allowed VISA transactions.
Shiba Inu Crypto: SHIB
You might have heard of Dogecoin, but there is competition for it right now. Shiba Inu is arguably one of the best investments you can make as an Australian nowadays if you add a collection of meme coins to your portfolio. The rise of Shiba Inu is nothing short of impressive. It was only launched in 2020, but it shortly became a big player in the crypto world. Even more impressively, Shiba Inu seeks to be more than just a meme crypto coin – it has already built its own Metaverse world.
LINK Crypto: Chainlink
Now, we can take a look at Chainlink and its LINK token. The token is built on the Ethereum platform, and as such, it complies with all Ethereum protocols. You can use all Ethereum tokens for various purchases and even pay miners for operating on the Ethereum network. The headquarters of Chainlink are in the Cayman Islands, and it was founded back in 2014 as an open-source protocol.
Uniswap Crypto: UNI
Finally, we finish this list with Uniswap – a decentralised crypto exchange also built on the Ethereum network. Of course, it offers trading without any central authority in between, with it also being one of the most attractive propositions among Australians.
The Verdict: Plenty of Choice at Your Disposal
Overall, one thing is sure – you are spoiled with choice when it comes to cryptocurrencies and tokens to invest in. The world of cryptocurrencies never seems to stop surprising us – all regarding its value, popularity, and innovations.
All the crypto mentioned above tokens are arguably the largest ones when you look at the market cap, but that doesn’t mean they are the only ones available.
Any experienced crypto enthusiast will tell you that thousands of tokens and cryptocurrencies can be a good investment. After all, it is best to do your research and even follow your gut feeling sometimes.
However, be cautious, as since developing tokens is a relatively simple procedure, tons of developers do just that in hopes of earning quick money. That way, you will not get the chance to profit in the long term, so fraud is always possible.
If you are interested in investing in cryptocurrency, then it is essential you understand how they operate precisely – that is the bare minimum. You will undoubtedly encounter interesting ones along the way, and you need all the information possible to make a good decision.
This article will be a good starting point for you. With this knowledge, you can continue your research and invest in cryptocurrencies. Who knows, maybe you will make a great fortune out of it!
