vantoken com What is a token and where to buy it
If everything is more or less obvious with the concept of a cryptocurrency unit, then what are tokens knows not every. When you are counting on making a profit in the field of playing on the crypto course and similar platforms, then you need to know the concept of tokens. A token is an analogue of shares on the exchange market, that is, it is a digital analogue of owning some asset, a particular unit of account.
To control currency token , to carry out operations to transfer it between different accounts, to purchase or sell, special applications are used. Tokens are managed using a smart contract.
The number of existing tokens, as well as their distribution scheme, is formed using the Ethereum Blockchain protocol.
How does a token differ from a cryptocurrency
· Centralized release and control that can be tracked and accounted for.
· Both verification and emission of tokens are carried out in a centralized or decentralized way, and in the case of a crypt, only a decentralized method works.
· Token price is formed according to a different scheme. If only the market affects the value of the cryptocurrency, then token price may be determined by the value of other assets , demand, supply, various economic and external factors.
· The crypt is launched only on its own blockchain, and tokens – on any.
Characteristics of tokens
A token is a specific unit that characterizes the share of ownership (number of shares) in an IT project, or it works in a specific area as a currency / reward. In closed IT systems, it is quite accepted to settle or pay for services with tokens, it is convenient and does not create unnecessary problems.
At the initial stage, any type of token is a unique currency only within one startup. However, when it goes to the wide market and exchanges, it can be converted into cryptocurrency to then be withdrawn into real physical money. In this case, the cryptocurrency becomes an intermediate link in the conversion of tokens into dollars or hryvnia. The most popular currencies are bitcoins or ethers.
Therefore, the specific cost of one token cannot be calculated in advance. Its final price will depend on several factors, including the characteristics and usefulness of the startup, the course of the cryptocurrency market, the development and value of the project.
What tokens can be
The type of this payment unit depends on the rights that it gives to its owner. For example, there can be tokens:
· Giving ownership of a certain share of an IT project;
· In the form of favorable conditions, game or temporary currency for use within the system;
· In the form of credit funds with a certain interest rate;
· As an alternative currency for exchange for real services of programmers, designers, any specialists in the required field.
How to buy tokens
Tokens can be purchased for their intended purpose and for the purpose of earning and resale, either a startup or a project. They can be bought on the company’s ICO or after they have been placed on a crypto-exchange.
In any case, you should carefully read the project to which these tokens correspond, its reliability, prospects and price. Quite often, tokens of fake “dead” projects may appear on the market, with which scammers are trying to earn money. Therefore, the initial check of the presentation of the project should come first in order for the purchase of tokens to be profitable and justified for the entrepreneur.