As you begin to explore the investment potential of the blockchain, it can be challenging trying to sort through all the jargon within the industry. However, you need to spend time and effort understanding such terminology so you can make smarter decisions on where to invest your hard-earned money. One of the most common sources of confusion is the difference between Bitcoin and utility tokens. A brand ambassador for blockchain companies explains the basic differences between the two, and how you can start investing in both.
What is Bitcoin?
For many novice investors, the glamour of Bitcoin and its dizzying payoff is what attracted them to the blockchain market in the first place. Bitcoin is one of the first cryptocurrencies and remains one of the top cryptocurrencies today.
As a cryptocurrency, you can use Bitcoin in financial transactions. Unlike traditional currencies, you can send, receive, and transact Bitcoins within the blockchain. That gives it an unparalleled level of security and transparency never seen in conventional currencies.
What are utility tokens?
Unlike Bitcoin and other cryptocurrencies, utility tokens have no financial value. You cannot mine utility tokens; you can only receive them from a company that offers such tokens during their ICO.
Initial coin offerings, aka ICOs, are done by blockchain companies to raise money for their projects. If you decide to invest in their ICO, you’ll typically receive a certain amount of utility tokens in exchange for your investment.
These utility tokens function much like vouchers. If, for example, you got utility tokens from a digital asset management company, it entitles you to use their products and services in the future.
Is Bitcoin a utility token?
Bitcoins are a cryptocurrency, and thus hold monetary value. On the other hand, utility tokens entitle you to a certain product or service from the company whose ICO you invested in. Therefore, no, they are not the same.
However, each one has a place in a strong blockchain investment portfolio. Much like traditional investments, it’s a good idea to diversify your investments, and this includes investing in both utility tokens and cryptocurrency.
To help you determine which utility tokens and Bitcoins to invest in, consider working with a brand ambassador for blockchain companies from the very start of your investment journey.
Invest in the Blockchain with Key Coin Assets
Here at Key Coin Assets, we believe that the future is in the blockchain. That’s why we’ve already established deep roots in the industry from its early stages. To date, we invested in around 37 ICOs, and have helped many investors take their first step towards blockchain investment.
New to the blockchain? We understand how complex and overwhelming this fantastic technology can be. Key Coin Assets can help you:
Learn more about the blockchain and how investments work in the space
- Stay updated on cryptocurrency news
- Discover ICOs with impressive profit potential
- Determine how much is a practical amount for you to begin investing
- Diversify your investment portfolio
- And more
Ready to open the door to greater wealth? Let Key Coin Assets guide you towards making smart decisions in the blockchain space. Contact us NOW at +44(0) 843 886 9547 and start to invest in yourself!