How can I buy a token that is not available on centralized exchanges? Guide.

What are tokens and coins, and what is their difference?

Sometimes people mistakenly think that coins, altcoins, and tokens are synonymous. However, there are differences between these terms that relate to the specifics of their creation, receipt, and use.

What are coins in simple words?

A coin is a digital coin that represents a full-fledged cryptocurrency. Virtual money – electronic registers (blockchains) contain data on how much money a particular user has and where they transfer it.

Records about this are sent to all network participants, ensuring a high level of reliability and security. At the same time, the wallet does not contain any personal data about the user, so it remains anonymous.

The cryptocurrency got its name because Bitcoin code-based encryption is used to verify transactions, ensuring security.

Differences between a coin and a token.

The following criteria can distinguish these assets:

1) Separate blockchain.

Coins have their blockchain. They have a separate blockchain, transactions, and network. In addition, coins include cryptocurrencies developed from scratch and forks (branches from the main code as a new one).

You can create unique functions and implement innovative technological solutions thanks to your blockchain. Coin developers decide what area the project can move to, what technologies to support, and how to earn mining rewards (and whether it should be present at all).

Examples are Bitcoin and Bitcoin Cash. The initial blockchain split into two independent branches. Therefore, to develop a new coin, you can use the source code of any cryptocurrency.

Tokens do not have their blockchain. Instead, they operate on blockchains of other cryptocurrencies, so they are dependent. There are also crypto platforms where any user can develop a smart contract and launch their digital asset. All this will be counted as tokens.

For example, the Ethereum platform has different tokens in its blockchain. But the central unit is ETH, a full-fledged independent cryptocurrency coin. The remaining digital assets on the Ethereum blockchain are counted as tokens dependent on cryptocurrencies, which they belong to, function according to their rules, and are tied to their network. Therefore, if there are problems with the blockchain of ETH, they are immediately reflected on the other tokens working on their basis.

Stablecoins are prime examples of tokens. For example, the most popular USDT stablecoin is based on the Ethereum blockchain. Also, the acclaimed Shiba Inu project does not have its blockchain and is also launched on Ethereum.

Crypto enthusiasts often criticize this approach. Some believe that tokens are “parasites” on other people’s blockchains, which increase the load on the network and, at the same time, do not always have real value.

2) Development.

Cryptocurrency development requires time, knowledge, skills, and effort. And anyone can create a token, and quickly enough. To generate a token, you need just a couple of minutes to choose a platform that supports smart contracts (the identical Ethereum code) and a few more minutes to develop the smart contract itself (you can copy and change the options offered on the Internet).

3) Use of assets.

Coins are full-fledged “digital money” that can replace fiat rubles and dollars. Moreover, they are multifunctional – you can use them to pay for goods and services and transfer them to other users.

Tokens are digital tokens that perform a specific function. For example, some can be used to confirm ownership rights or to receive a particular service. An example is a token in the subway that opens the turnstile; however, you can’t use it to pay for an order in a cafe anymore.

Some tokens are backed by fiat currency and linked to their exchange rate – stablecoins. The goal is to replace fiat currency in crypto trading.

4) Mining of digital assets.

To get a coin, you can use mining, forging or staking. Sometimes developers don’t implement the mining option, but this is a particular case.

You can’t mine or get tokens in any other way. After all, they do not have their blockchain and network to support which miners would be transferred a reward. Usually, all available tokens are issued simultaneously. But in some cases, their additional release is possible due to some functions of smart contacts.

In other words, coins can be compared to a building located on the foundation (blockchain) and tokens with an add-on to it.

How to buy a token not available on a centralized exchange. User Guide.

Starting a decentralized wallet.

Let’s try installing the MetaMask wallet in the Chrome browser.
First, we go to the browser extension store then find MetaMask in the search.

I am installing the extension.

After installation, the welcome page opens. Click “Get started“.

Click on”Create a wallet“.

Next, choose an option.

Create a strong password → check the box → click”Create”.

We read essential information about the recovery phrase and click “Next”.

We reveal secret words.

Write down 12 words according to the recommendations above and click “Next”.

Creating a secret phrase, click”Confirm“.

Read the safety tips click”Completed”.

Ok. So you have a decentralized MetaMask wallet.

Now, if you click on the MetaMask extension icon, the working window of the wallet will open.

Since we have a wallet, we now need to top it up.

First is the token of the network in which we will conduct transactions. It is necessary to pay for network commissions.

Binance Smart Chain

We will be buying a Binance Smart Chain coin; hence we need some BNB.

But first, we need to add the Binance Smart Chain itself to the wallet, for which we need to perform the following sequence of actions::

• – Click “Network” and then “Custom RPC”.
• In открывшtheмся window that opens, enter the following data:

Network Name: Smart Chain.

New RPC URL: https://bsc-dataseed.binance.org/;

Network ID: 56.

Symbol: BNB.

URL of the block explorer: https://bscscan.com.

• And click “Save“.

It added the network to the list.

We have a wallet address to send any Binance Smart Chain tokens.

• Tap on the address to copy it to the clipboard.
• Transfer some BNB to it.

It is not part of the purpose of this instruction to describe in detail how to transfer money from centralized exchanges or others.

In general terms, it is done as follows: go to your spot wallet, → choose a token (in our case, this is BNB), → click “Withdraw”, → enter the wallet address to which you want to withdraw → confirm with codes from email, SMS and two-factor authentication. It done.

So, you also sentи some BNB to the above address, and now they are displayed in the wallet.
You can also send another BSC network token to this address, such as USDT.

Great! We have a ready-made MetaMask decentralized wallet with funds to purchase the desired token.

Buying a token.

We are reviewing the purchase of the TABOO TOKEN. The mechanics of buying all tokens are similar.

First, we need the address of the token contract.

It can find it on the coin market cap if the coin is present there.

If not can usually find the contract address on the official project website. In our case, taboo. community

The token page opens in the BSC network browser.

We see the contract address in the “Profile Summary” block.

Proceed to the purchase.

We go to a decentralized exchange, for example,
pancakes wap. finance

It connects to your wallet.

Click “Next” and then – “Connect”.

The wallet is connected to the exchange.

Now in the “Trade” tab, select “Exchange”.

The exchange’s working window appears.

Now we need to add the token that we want to buy.

Click “Select a currency“.

In the line that appears, enter the address of the token contract and click “Import”.

We read the risk warning, check the “I understand” box, and click” Import”.

Token added.

Now let’s exchange some BNB for TABOO.

Enter 0.019 BNB in the “From” column, approximately $10 (with the exchange rate of $530 for 1 BNB).

We are provided with information about the current terms of the transaction:

• Minimum received – the minimum number of tokens that you will receive.
• Price Impact – the amount of possible discrepancy between the stated price and the one at which the transaction will occur.
• Liquidity Provider Fee – commission for the liquidity provider.

Subject to the terms and conditions, click “Swap“.

In the window that appears, we once again approve the latest terms of the transaction (they change pretty quickly) and click “Confirm Swap”.

A wallet window will appear with information about the transaction, including network fees. If you agree, we confirm the transaction.

The transaction is confirmed.

Click “Add TABOO to Metamask” to add the token display in the wallet in the window that opens, then confirm that we want to add the token.

And TABOO is at our disposal!

Now we can own it, send it, and exchange it.

? Best Trading Robots for Performance

Relevant news