Cryptocurrencies are digital tokens that are created differently?

If you want to be aware of all the aspects of crypto trading, it’s important to find out why are digital tokens different from what is called cryptocurrency. Actually, the answer to this question isn’t supposed to impact the way you buy invest digital tokens. Nevertheless, you should know about the key peculiarities of your assets.

Introduction to digital assets

As we all know, a digital asset is a special trading instrument that is mined and traded via a specially designed decentralized system. Such assets are stored only in a digital form on blockchains. They increase value or lose it depending on their popularity.

In terms of execution or transactions, we can subdivide digital assets into two main types — cryptocurrencies and digital tokens. These terms are often interchangeable because the execution process doesn’t impact the performance of a trader and doesn’t increase value of assets.

The difference between cryptocurrencies and digital tokens 2022

In a nutshell, digital assets are stored on blockchains, and when the transferring process is about to be executed, the data is encoded. The difference is in the way this information is encoded. In the case of cryptocurrencies, software protocols of blockchain are used, whereas for digital tokens, the concept of smart contracts of applied. Smart contracts make the process automated.

How can I get digital tokens 2022

There are different ways to get digital tokens 2022 that gain value. These are the most common ways to do this:

1. Buy on exchange — create a trading account and buy profitable assets.
2. Mine — special equipment is required.

List of digital tokens 2022

If you want to main profits from crypto trading, you need to be familiar with the top digital tokens that will gain value this year. Here we have the list of digital tokens 2022 with the highest market capitalization:

1. Tether (USDT)
2. USD Coin (USDC)
3. Shiba Inu (SHIB)
4. Binance USD (BUSD)
5. Crypto.com Coin (CRO)
6. Chainlink (LINK)
7. Wrapped Bitcoin (WBTC)
8. Uniswap (UNI)
9. Dai (DAI)
10. FTX Token (FTT)

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