What are CoinPot tokens?
On March 28, 2018, CoinPot announced the creation of Coinpot Tokens, a new added value for CoinPot users. A new type of exclusive “asset” of this Microwallet that appears in the existing currencies, Bitcoin (Core / Cash), Litecoin, Dogecoin, and Dash. But to realize what Coinpot Tokens actually represent, it is essential to be able to distinguish the real differences between Tokens and crypto-coins.
Cryptocurrencies – Altcoins and Tokens what’s the difference?
Coin / Altcoin
A cryptocurrency, let us use Bitcoin as an example, is a type of cryptographic currency that operates independently of any other platform, that is, it operates in its own Blockchain. There is no difference between cryptos or altcoin. The term Altcoin is applied to all cryptocurrencies that represent an alternative to Bitcoin. Most altcoins are Bitcoin variants, built using Bitcoin’s original open-source platform with a few changes (Forks) in their underlying codes, thus creating a new currency with a different set of features.
Examples of altcoins: Litecoin and Dogecoin. There are also other altcoins that do not derive from Bitcoin’s Open Source protocol. Instead, it has created its own blockchain and protocol that supports the native currency. For example; Ethereum and Ripple. If you have questions, you can always check in Coin Market Cap the list of cryptos and their platforms.
Tokens
Unlike the altcoins or Bitcoin operating in their own Blockchain, the tokens operate on an existing blockchain that belongs to another currency, such as Bitcoin or Ethereum. Tokens provide a way to define a protocol, and also to finance the operating expenses necessary to host it as a service. Bitcoin and Ethereum have tens of thousands of servers around the world, the miners, who run their networks. Tokens, in turn, cover hosting costs with integrated mechanisms, which automatically distribute the mining rewards to the home network computers.
Tokens provide a template for creating shared computing resources, such as databases, computing, and file storage. At the same time, they keep track of these decentralized resources (and without requiring an organization to maintain them). This is one of the many inherent features of blockchain technology, which allows shared data to be stored in a decentralized network.
The different types of Tokens
There are several types of token, and they can differ in their functions and attributes. A token can fulfill one or more of the following functions:
Cryptocurrency used as a payment method between participants of a platform;
Cryptocurrency used as a payment method for participating in a given platform (Start-Ups, Airdrops …);
A digital asset (Actions / Vests of a given platform);
A way to count values (number of API calls, the volume of torrent uploads…);
A way to prevent attacks and create smart contracts;
How can I get CoinPot tokens?
There are several features that allow you to acquire and increase your CoinPot Tokens balance.
FAUCETS
Use any of the faucets supported by CoinPot – for each claim you make on an individual faucet, you will earn 3 CoinPot Tokens, and for each claim made by any of your referrals, you will earn 1 CoinPot Token.
Use any of the faucets supported by CoinPot – for each claim you make on an individual faucet, you will earn 3 CoinPot Tokens, and for each claim made by any of your referrals, you will earn 1 CoinPot Token.
MINING
You can mine CoinPot Tokens exactly the same way you can mine any of the other crypto coins directly in your browser.
CONVERSION
Use Coinpot’s custom conversion system to convert your crypto coins to CoinPot Tokens – the exchange rate will fluctuate in a similar way to other crypto coins.
How to use Coinpot Tokens?
There are several ways to use your Tokens.
CONVERSION
You can use Coinpot’s usual conversion system to convert your Tokens to any of the others Crypto Coins, namely Dogecoins, Litecoins, Bitcoin Core and Cash and DASH coin – the exchange rate will fluctuate similarly to that of other currencies.
LOTTERY
At Coinpot there is a lottery that raffles Coinpot Tokens and you can participate using your token balance. Prizes are drawn every hour and include all tokens used to buy tickets, plus 1,000 tokens donated by CoinPot for each extraction! Coinpot in the future intends to increase the ways of using your tokens for gifts and gift cards exchange, and more games like the lottery!
How to make the most of your Coinpot Tokens
When the value of the cryptos decreases, the value of tokens increases, and vice versa. We can say that the fluctuation of the token value is opposite to the fluctuation of the value of crypto. Therefore, starting from this principle it’s more profitable to convert the tokens when the value of a cryptocurrency is smaller. To understand these trends, simply follow the markets and see when, for example, Bitcoin loses or gains value. Although gains in faucets are low, Token Coinpot comes as an opportunity to increase profits. For each claim, the user receives 3 tokens that gradually accumulate and later can be converted for crypto of choice.
CoinPot Faucet List
