Basic Term in Crypto World Part 1 :-
1. Difference between Coins & Tokens:-
Coins basically act as fait money in crypto world. You can do normal trade with it. Coins work independently. To understand we can say that different cryptocurrency in crypto world resembles to different fait currency of world.
Token represent any asset ranging from some kind of points to power to vote. For example in a company they can represent shares, in a casino they can represent casino token etc. Token need a platform to work. We can't trade token in market like a coin. But we can trade them in particular organisation or company which authorise it.
2. Altcoins
Altcoins is very familiar world in crypto world. Altcoins is combination of two words Altcoin & Coin. Altcoins represent all coins other than Bitcoin.
Fact:- First altcoin was Namecoin created on april 2011.
3. Market Capitalisation
Market Capitalisation is measure of realtive size of Cryptocurrency. Market Capitalisation is product of two things quantity of coins in circulation & value of coin
Market Capitalisation = Circulating Supply * Price
4. Circulating supply
Circulating supply is quantity of coin in circulation in market at an instant of time.
5. Total supply
Total supply is total amount of coins in existence at an instant of time.
6. Max supply
Max supply is maximum amount of coins that will ever exist in a life of cryptocurrency.
