What is the difference between cryptocurrencies (Coins) and tokens?
In the blockchain world, there is a clear distinction between:
🔹 Cryptocurrencies (Coins):
These are assets that operate on their own network.
The most famous examples:
– Bitcoin (BTC)
– Ethereum (ETH)
– Cardano (ADA$)
These currencies are used as a means of payment or store of value, and they have an independent blockchain.
🔸 Tokens:
These are built on top of other blockchain networks, such as the Ethereum network or Binance Smart Chain.
They are used in decentralized applications, such as NFTs, games, finance, and more.
Example:
– USDT (Token on Ethereum)
– SAND (Token on Polygon)
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✅ Summary:
📌 Coins have independent networks like ADA$, while tokens rely on an existing network.
📌 Understanding this difference is essential before investing or transferring assets.