Learn what coin, tokens, and fiat currency really is in this video.
Transcript Below:
Hi there!
My name is Dani and I’m the founder of the simplest crypto dictionary beginner’s guide.
In this video series, I’m going to introduce the basic concepts surrounding cryptocurrency. We’re going to touch on:
– 13 very important and very common words you need to know
– Then I’m going to bring up 5 common categories of cryptocurrency
– And finally, the 8 crypto resources you need to be using right now
Before I go on, here’s a quick disclaimer: Nothing published by me or Decryptionary constitutes investment advice. Always do your own research before making an investment.
A coin is a unit of digital value and so is a token. However, while a coin is built using the bitcoin technology, they have no other value unlike tokens which have the potential of software being built with them.
Right now, many tokens have been built using Ethereum’s technology known as ERC-20. But there are some new tokens coming out that are built with NEO’s technology known as NEP-5. There are quite a few other cryptocurrencies such as NEM trying to become the major platform for people to build their tokens on.
Fiat currency is money that has been declared to be valuable by the government. Fiat currency doesn’t have any value by itself and it doesn’t represent anything valuable. Instead, fiat currency maintains its value because its users trust the government and banks that created them. US dollars are a type of fiat currency and are frequently used to get cryptocurrency.