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Coins vs Tokens: What’s the Real Difference in Crypto?

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Coins vs Tokens: What’s the Real Difference in Crypto?

Crypto isn’t just about Bitcoin anymore. As the digital asset space grows, understanding the difference between coins and tokens is key to navigating the blockchain universe like a pro. 🔹 What is a Coin? A coin is a cryptocurrency that operates on its own blockchain. ✅ Used as digital money ✅ Pays for transaction fees ✅ Stores and transfers value Examples: Bitcoin (BTC) – Bitcoin blockchain Ethereum (ETH) – Ethereum blockchain Litecoin (LTC) – Litecoin blockchain In short: Coins are the foundation of their own networks. 🔸 What is a Token? A token is a cryptocurrency that is built on top of another blockchain, like Ethereum or BNB Chain. ✅ Powers apps, platforms, and services ✅ Can represent assets, voting rights, or access ✅ Doesn’t have its own blockchain Examples: USDT (Tether) – runs on Ethereum & others UNI (Uniswap) – used in DeFi governance MATIC (Polygon) – started as a token on Ethereum Tokens fuel ecosystems and platforms — not entire blockchains. 🚀 Why It Matters Understanding coins vs tokens helps you: 🔍 Make smarter crypto investments 🧠 Choose the right projects to follow 🌐 Navigate Web3 and DeFi platforms confidently So next time you're evaluating a crypto project, ask: Is it a coin or a token? The difference can change everything.

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