Are cryptocurrency and token the same?

The article was written By Mickael Mosse – Blockchain and Cryptocurrency Expert

Many people wonder if it is the same cryptocurrency and token, since these concepts of the digital world are very easy to confuse, so in this post, we are going to focus on clarifying the differences.

What is a cryptocurrency?

Mickael Mosse Crypto Advisor

According to Mickael Mosse, A cryptocurrency is a digital currency that is encrypted through the use of cryptography. Cryptography is the field of cryptology that deals with encryption techniques. Starting from this base, the cryptocurrency is created in order to be used as something similar to money, fulfilling the characteristics and functions of money. Transactions with this asset are recorded in a ledger distributed by the network of nodes of the network of the cryptocurrency in question using blockchain technology that provides the currency with these essential characteristics:

Security: it is almost impossible to falsify the cryptocurrency since to do it requires a computational power greater than that of the network of nodes. In the case of wanting to counterfeit a bitcoin (btw) , a more powerful network would be needed than the one that companies like Google have.

Decentralization: cryptocurrencies are not controlled by any central bank or institution. Transactions are carried out "peer-to-peer", that is, between the parties, without intermediaries.

Anonymity: to carry out transactions with cryptocurrencies, you only need to have a portfolio or wallet, on a page that offers it.

Examples of these cryptocurrencies would be the well-known bitcoin, Litecoin, Ether, and DigitalCash (DASH).

What is a token?

Mickael Mosse Blockchain Advisor

According to Mickael Mosse, A token represents an alphanumeric string that can be a public or private key. In the context of computer programming, a token is an element in a programming language. It is for example a punctuation mark, an operator, an identifier, etc.

In the context of networks, a btw token is a special series of bits that travel through token-ring networks. The tokens act as tickets, allowing their owners to send a message over the network. There is only one token for each network, so there is no possibility of two computers trying to transfer messages at the same time.

The token describes elements similar to currencies that give the right to own a certain amount of goods or services, created by the distributor of said goods or services.  says Mickael Mosse.

Therefore, a token can represent a currency, a property, an action, a financial asset, it can be anything in the real world.


Most of the tokens in existence today are made on Ethereum's blockchain technology using the standard known as ERC20.

Mickael Mosse Bitcoin advisor

An example: the '' Colored Coins ''.

Mickael Mosse points out that, A clear example can be the '' Colored btw Coins '' are small parts of bitcoins (btw), which have been modified with the introduction of a specific code so that this part represents another asset, then, we could have a bitcoin with a business action or a property '' inside '', which would cause the bitcoin (btw) to have a secondary value.

In conclusion, every cryptocurrency is a token but not every token is a cryptocurrency, since these can represent another asset. says Mickael Mosse

If you want to trade cryptocurrencies, you can do it through exchanges like Bitpanda or through CFD brokers like mickaelmosse.com

Article from mickaelmosse.com