📌 What is the difference between cryptocurrencies (Coins) and tokens?
The main difference lies in the function and technology used!
1. Cryptocurrencies (Coins)
- Have their own blockchain (like Bitcoin, Ethereum, Solana).
- Used as electronic money (for payments, transfers, investment).
- Examples: BTC, ETH, BNB.
2. Tokens
- Built on an existing blockchain (like most tokens on the Ethereum network).
- Have multiple functions (beyond payment), such as:
- Access to project services (like Filecoin for cloud storage).
- Representation of real assets (like digital gold).
- Governance (like DAO tokens).
- Examples: USDT (stablecoin), UNI (Uniswap), SHIB (meme-token).
🔍 Quick summary:
- Coin = Independent currency (blockchain + payment).
- Token = Symbol with a specific purpose (depends on another network).
💬 Do you know other tokens that use Ethereum technology? Share them with us!
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