$BTC
✍️The difference between cryptocurrency (Coin) and digital token (Token) is important in the world of blockchain, and it lies in the underlying structure and use:
- Cryptocurrency:
It is a standalone digital currency.
It operates on its own independent blockchain.
It is used as a medium of exchange, store of value, or unit of account.
- Examples:
Bitcoin (BTC) – operates on the Bitcoin network.
Ethereum (ETH) – operates on the Ethereum network.
Solana (SOL) – operates on the Solana network.
- Digital Token:
- Does not have its own blockchain.
- It is created on another cryptocurrency's blockchain.
- It can be used in multiple applications: such as decentralized finance (DeFi), gaming, digital ownership, and more.
- Examples:
USDT (Tether) – a token on the Ethereum blockchain and other blockchains.
UNI (Uniswap) – a token used on the Uniswap platform, operates on the Ethereum network.
APE (Apecoin) – a token built on Ethereum.
✍️ A simple analogy:
Cryptocurrency is like the main road (the blockchain), and the car that drives on it (the currency).
A digital token is like the trucks or bicycles using this road — they differ in functions but do not have their own road.
