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The universe of cryptocurrency is enormous and in a state of constant change. The most prevalent misunderstanding for new users is the difference between coins and tokens. Although they may appear the same, they have distinct functions within the blockchain world.
Let’s learn what coins and tokens are, how they function, and why knowing their differences is important. Whether you’re an investor, a developer, or a crypto enthusiast, this article will give you clear-cut information to help you navigate the crypto world.
A coin is an independent digital asset that runs on its blockchain. It is a virtual form of money used for payment, transactions, and store of value.
Coins
Has its blockchain — Coins run independently on their blockchains.
Used for transactions — Largely meant for payments and transfers.
Can be mined or staked — Most coins employ mining (Proof of Work) or staking (Proof of Stake) for verification.
Supports blockchain operations — Some blockchains use native coins to execute smart contracts.
Examples of Coins
- Bitcoin (BTC) — The original and most expensive cryptocurrency, known as “digital gold.”
English (US) ·