What is a digital currency (Coin)?

It is a currency that has its own private network.
Meaning it does not rely on anyone and has its own blockchain.

Examples:

  • Bitcoin (BTC): The first digital currency, and it has its own network.

    Ethereum (ETH): A currency and network on which thousands of projects operate.

    BNB: Currency of the BNB Chain network.

  • These currencies are used in:

Payment

Network operations
Transfer and transaction fees

🧾 What is a token (Token)?

The token is like a currency, but it doesn't have its own network.

It works on another network (like a guest being hosted by a house).

Examples:

  • USDT (Tether): Works on Ethereum and BNB Chain among others.

    CAKE: Works on the BNB Chain network.

    SHIBA: Created on the Ethereum network.

These tokens are used in:

Decentralized trading platforms

Decentralized Finance (DeFi) projects

Games, NFTs, Applications

👀 So why is this difference important?


Once you know the difference, you'll be able to distinguish:

  • The large project that built a complete network for itself (meaning stronger and independent)

    And the project that works on another network (meaning faster to launch, but less control)

🔑 A simple summary:

  • The currency (Coin): A private and independent network

    The token (Token): Works on another network – not independent

Think of it like:

The currency = your own house

The token = a rented apartment in someone else's building 😄


💬 What was the first coin or token you bought? Did you understand the difference back then? Share your thoughts 👇