Coin vs token. What is the difference?

Ethereum is not just a network that can be used as a digital currency system, it is also a platform where other applications can be built. There are two types of native digital assets within the Ethereum universe. Computers-participants use these assets to “pay” each other to perform operations. A “coin” — Ether — is used within the network and a “token” is used within the application.

What is ERC20 Token?

ERC20 is a set of standards created for applications built on the Ethereum network. To comply with ERC20, an application must have certain types of functions that would allow it to communicate with other applications. If a token application is a TV, ERC20 ensures that it (TV) has HDMI and other inputs/outputs compatible with other electronics.

How to get into the Token game…

Tokens cannot be bought directly with real world currency. To get tokens, you will have to exchange coins (Ether, Bitcoin, Ripple) for them. Below is a simple guide on how to acquire tokens.

First, you need to buy coins that can be used in trading such as Ether (ETH), Bitcoin (BTC) or Ripple (XMR). Here is a good article on how to get ETH or BTC from Coinbase. From here you have multiple options.

Option 1 (Bitrex, Poloniex, Bitfinex)

Create an account with one of the exchange services. Once you go through the required verification process, you will be able to deposit coins or real world currency into your account. To do that you will need to send them from your Coinbase account into your exchange account.