What is a "Layer" Coin in Crypto?
In the crypto world, you might hear the term "Layer 1" or "Layer 2" coins. But what does that mean?
Layer 1 Coins are the main blockchains. They are the foundation of crypto networks and work on their own.
Examples:
Bitcoin ($BTC ) – Used for fast, peer-to-peer payments.
Ethereum ($ETH ) – Used for smart contracts and apps.
$BNB , Solana, $Cardano, Avalanche – Other strong Layer 1 projects.
These are like the kings of their own empires!
Layer 2 Coins are built on top of Layer 1 to make things faster and cheaper.
Examples:
Polygon (MATIC)
Arbitrum (ARB)
Optimism (OP)
They help improve Ethereum’s speed and reduce gas fees.
In short:
Layer 1 = Main blockchain
Layer 2 = Speed booster for Layer 1
Both are important in the future of crypto!
Follow for more simple crypto tips!