Starting a New Cryptocurrency: Is It Right for Your Business?

Now you have a fairly good idea what a cryptocurrency is and how it is used. Now comes the question, does your business actually need cryptocurrency? Just answer the questions below, and you will get a clear picture:

·        Will your business be on the internet?

·        Does your revenue come more from digital payments than hard cash?

·        Will an online payment option increase your userbase?

·        Do you plan to stay in business for more than a couple of years?

Okay, the last question was a rhetorical one. If the answer to all these questions is “yes” then your business needs a integrate cryptocurrency.

Benefits of building your Own Cryptocurrency:

·        Eliminate Fraud Risk

·        Transaction Anonymity

·        Lower Operational Costs

·        Immediate Transactions

·        Access To New Customer base

·        Security For Funds

So What exactly is the difference between a Token and a Coin in Cryptocurrency?

The three main differences are:

1.  Coins are part of a single blockchain while tokens operate on the existing blockchains.

2.  Tokens are limited to a specific industry or community; coins can be used anywhere.

3.  Coins can buy tokens, but tokens can’t buy coins.

Let’s simplify using a real-life scenario. If you go to Starbucks regularly, then you may earn loyalty points for your frequent purchases. With these points, you can redeem a drink. These loyalty points are token that an establishment (in this case Starbucks) offers.

Now you can buy such loyalty points by giving money which in turn gives you free coffee. This money is the coin (in this case a real-life coin or bank note).

You can buy loyalty points using coins, but you can not get real money using loyalty points. So a crypto coin can be used to buy a business’s token, but you can’t buy a crypto coin using a token.