Coins vs. Tokens
Coins
1. Native cryptocurrency: A coin is a native cryptocurrency, like Bitcoin or Ethereum, which has its own blockchain.
2. Independent: Coins operate independently, with their own consensus mechanisms and network architecture.
3. Limited functionality: Coins typically have limited functionality, focusing on peer-to-peer transactions and store of value.
Tokens
1. Built on existing blockchain: A token is a digital asset built on an existing blockchain, like Ethereum or Binance Smart Chain.
2. Dependent on underlying blockchain: Tokens rely on the underlying blockchain's consensus mechanism, network architecture, and security.
3. Varied functionality: Tokens can have a wide range of functionalities, such as governance, utility, or security tokens.
In summary, coins are native cryptocurrencies with their own blockchain, while tokens are digital assets built on existing blockchains.
When buying coins or tokens before a Binance listing, be sure to research the project thoroughly, understand the risks, and ensure you're dealing with reputable parties.
