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What is the difference between Coin and Token? (A simple but important question)
In the world of cryptocurrencies, many people confuse "coin" and "token".
Here’s the difference simply:
Coin: operates on its own blockchain, like $BTC on the Bitcoin network or $ETH on Ethereum.
Token: is created on an existing blockchain, like $SHIB and $PEPE which operate on the Ethereum network.
Why does it matter to know the difference?
Because coins are typically used as a means of payment or store of value, while tokens are used in applications, games, projects… etc.
A proper understanding helps you make smarter investment decisions!
#CryptoEducation #BinanceSquare #Bitcoin #Ethereum #SHIB #PEPE #BlockchainBasics #Web3