A coin represents a digital form of a currency designed to exchange goods. It is based on a cryptographical mechanism, which is strictly relied on the public ledger, registering all the information in a financial database. Digital coins, such as Bitcoin, Ethereum, Litecoin, are native to their own blockchains.
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.
Altcoins are the alternative cryptocurrencies launched after the success of Bitcoin. Generally, they project themselves as better substitutes to Bitcoin. The success of Bitcoin as the first peer-to-peer digital currency paved the way for many to follow. As the term ‘altcoins’ means all cryptocurrencies which are not Bitcoin, there are hundreds of altcoins.
Crypto tokens represent a particular fungible and tradable asset or a utility that is often found on a blockchain. Terms like cryptocurrency, altcoins, and crypto tokens are often erroneously used interchangeably in the virtual currency world.