#Crypto coins and tokens are both digital assets, but they serve different purposes and have distinct characteristics.
*Crypto Coins*
1. *Independent blockchain*: Coins have their own blockchain, like #bitcoin ($BTC
) or Ethereum (ETH).
2. *Native currency*: Coins are used for transactions, payments, and as a store of value.
3. *Examples*: Bitcoin (BTC), Ethereum (ETH), Litecoin ($LTC
).
*Crypto Tokens*
1. *Built on existing blockchain*: Tokens are created on top of another blockchain, like #Ethereum or #Binance Smart Chain #BSC .
2. *Represent assets or utility*: Tokens can represent assets, rights, or utility within a specific project or ecosystem.
3. *Examples*: ERC-20 tokens (e.g., USDT, LINK, $BAT
) on the Ethereum blockchain.
Key differences:
1. *Blockchain dependency*: Coins have their own blockchain, while tokens rely on existing ones.
2. *Purpose*: Coins are often used as currency, while tokens have various use cases (e.g., governance, utility, security).
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