The main difference between coins and tokens is that coins are always based on their own standalone blockchain. Tokens are built on top of other blockchains, such as Ethereum, NEO, TRON, etc.
While the main function of coins is to work as digital money, tokens bear utility functions set by their hosting chains. For example, NEO tokens work as fuel for the NEO network. Also, tokens allow their holders to participate in the network. At the same time, tokens have monetary value and can be used as a method of payment just like coins. Coins and tokens are not interchangeable.
Some examples of coins supported by our apps are Bitcoin (BTC), Neo (NEO), Dash (DASH), Monero (XMR), Stellar (XLM).
Some examples of tokens supported by Freewallet would be Aeternity (AE), USD Coin (USDC), Matchpool (GUP).
The most popular tokens are built upon Ethereum and have an ERC20 standard (while other Ethereum tokens have ERC20, ERC-223, ERC-721, and ERC-777 standards).
Besides, tokens can pertain to other networks, such as NEO, TRX, EOS.
Freewallet is known for supporting a wide range of ERC-20 tokens (the full list can be found here). However, we also list two EOS tokens, such as EOSDT and NUT.
How not confuse token addresses for coin addresses and vice versa?
In most cases, coins and tokens have different wallet addresses. But sometimes these addresses look very much alike, which creates confusion and leads to mistakes. Also, one project can host coins and tokens on two different blockchains. While sharing the same name, assets from different chains have different addresses.
Oftentimes, a project launches and distributes ERC-20 tokens, using a faster and more universal framework for start. Then, to adjust it to its needs and ideas, this project prepares a swap to its proprietary mainnet. If addresses of both networks are technically compatible, as in the case with THETA, it’s easy to send coins to the token address and vice-versa.
If there is a mistake, the wallet platform won’t be able to reflect your transaction on wallet balance and will undertake a series of financial operations to retrieve your money.
There are a few ways to prevent a possible mistake.
1. Do your own research
Find if the app supports the asset you plan to send. Check up with our list of supported tokens or run through all assets available in the app.
2. Check with the support team prior to sending a transaction.
3. Deposit ERC-20 tokens to their own deposit address.
If you plan to transfer funds to Freewallet, it’s always wise to generate a respective address for the asset of your choice. It can be done via the ‘Receive’ button.