๐ In the world of crypto, many traders make a big mistake: confusing the coin and the token ๐ฎ
๐ฐ Coin:
A digital currency that has its own blockchain. For example:
BTC = Bitcoin network โ๏ธ
ETH= Ethereum network ๐ฅ
๐ท๏ธ Token:
Built on another network, and does not have its own blockchain. For example:
$USDT on Ethereum (ERC-20) or Binance (BEP-20) ๐ต
DeFi and NFTs projects ๐จ
โก๏ธ Why should you know the difference?
1. Coins are generally more secure and stable.
2. Tokens are rapidly developing and open up new investment opportunities.
3. Choosing the right network for the token (ERC-20 / BEP-20) makes a difference in fees and security.
โจ In short: Coin = the foundation ๐ โฆ Token = the construction on top of it ๐๏ธ.
Your knowledge of this difference could save you from costly mistakes while trading.
#CryptoTipsl #Blockchain101 #CryptoEducation #TradingSmart #DeFi $BTC
