To buy cryptocurrencies such as Etherium in India has become very easy and accessible with the availability of platforms like Plena Finance. For newly interested people in cryptos, there is a need to understand the difference between coins and tokens. The below will work as a guide for them to understand about it.

Where and How to Purchase Ethereum in India

1.      Choose a Cryptocurrency Exchange: To invest in Ethereum in India, there is a need to choose the right cryptocurrency exchange first. The following are some of the most preferred; among them, many prefer using Plena Finance.

  1. Create an Account: After joining an exchange, you’ll be required to open an account. It usually entails entering an email address, and a password, and going through a KYC (Know Your Customer) to confirm your details. The account verification of the App is used to take documents such as the Aadhaar card, PAN card, and a photo-selfie for identity confirmation.
  2. Deposit Funds: Once you register your account and it is confirmed, it is time to transfer money into the accounts. Platforms like Plena Finance provide the user with multiple choices where he/she can invest money, such as bank transfers, UPI, and debit/credit cards.
  3. Buy Ethereum: With this, it is now possible for you to gain Ethereum using the funds in your exchange account. Move to the Ethereum segment of the exchange and submit an order. Plena Finance offers you adequate information on the market to make a logical decision.
  4. Store Your Ethereum: A key aspect that once you acquire Ethereum it is important to ensure it is kept safely. However, when you leave them in the exchange’s wallet, it may be more vulnerable to hacking and other malicious activities. The most recommended cold storage wallets are the hardware wallets which include Ledger and Trezor.

The difference between coins and tokens are:

Coins: Coins are tokens based on their own independent blockchains and embody digital money. The most popular example is Bitcoin which operates on the Bitcoin platform referred to as the blockchain. Another example of a Dapp is Ethereum, which operates on the Ethereum blockchain. Coins perform general economic functions, including money, a means of payment, a measure of value, and a storage of value. Their consensus mechanisms are what will determine whether they can be mined or staked. Coins are utilised for exchange and are recognized by an expanding number of sellers globally.

Tokens: Tokens, on the other hand, are tokens which are developed on pre-existing blockchains. The most frequently used blockchain for generation tokens is Ethereum, utilizing the ERC-20 system. Tokens are not like coins and they display certain value or utility. It can be used to indicate a stake in a particular product, provide clients with privileges to certain options or widgets, or mean actual tangible items like houses or shares. For example, in most decentralized finance (DeFi) projects, utility tokens grant their holders voting rights, staking benefits, or a cut from the respective project’s revenue.

Realizing how to buy Ethereum in India with such platforms as Plena Finance and realizing the distinctions between coins and tokens allows enhancing your knowledge about the world of cryptocurrency and make better decisions when investing in these assets.