Many virtual currency platforms also have certain digital assets like “stocks” called tokens. Ethereum tokens are some of them running on the Ethereum blockchain. This makes it possible to develop the already existing Ethereum infrastructure, thereby further popularizing the platform, rather than coming up with a completely new separate blockchain system.
For comparison, we can take the example of the App Store, which is a platform for the development of applications for iOs. But at the same time, many gaming applications have their own unique currency that allows you to buy certain features.
Ethereum Tokens can serve very different purposes. They can be correlated with assets in the monetary sense, gold, securities. In each such unit, you can put a completely different meaning and meaning in which it will be applied. Within a closed system, tokens are often used as payment for network access or decentralized governance.
Ethereum exchange issues tokens on a crowdsale model. This means that at one point a certain amount of issued tokens goes on sale and, in exchange for Bitcoins or Ethers, they are sold between people.
To understand the profitability of tokens or the Ethereum currency itself – Ether, you need to understand its approximate cost. It changes quite quickly, since it directly depends on the numbers of the circulating supply. The Market Capitalization indicator will help to determine the cost, which can be found through a request for analytics services, for example, eth coinmarketcap .
The most famous markers Ethereum capitalization are Augur (REP) and Golem (GNT).
Augur is a decentralized platform for cryptocurrency rate predictions. Thanks to it, you can reduce risks in the event of a sharp decline in the exchange rate, making profitable bets for yourself on certain dates. The service also serves as protection against corruption of various kinds, since it does not have a centralized source that reports the results of bets.
· Golem is a project that aims to make computing power available to everyone. It works on the principle of renting excess capacity from one user to another. Ethereum tokens on this platform serve as payment for renting capacity, conducting internal operations.
The Ethereum exchange uses ERC20 sample tokens. This is one of the types of tokens that allows you to quickly carry out all operations if the partner has configured compatibility functions with this type.
Ether coin – ether (eth), a currency that runs on the Ethereum blockchain. Like Bitcoin, in recent years it has become the most popular and widespread, and after BTC it takes the 2nd place in terms of rate growth. The approximate cost of one Ether can always be viewed at Ethereum coinmarket . This service conducts analytical comparisons of the rates of various cryptocurrencies, tokens, and tells in detail about the features of various exchanges and their innovations.