📚 What’s the Difference Between a Token and a Coin? (And Why It Matters!) 🤔💡

Most new traders don’t even realize there’s a BIG difference between coins and tokens — and it could save you from bad investments.

Here’s the breakdown:

🪙 Coins = Native to Their Own Blockchain

Examples: $BTC , $ETH , $SOL , $ADA

– These are layer 1 assets
– Used for gas fees, security, and core network functions

🔗 Tokens = Built ON a Blockchain (Like Apps)

Examples: $PEPE (on ETH), $WIF (on Solana), $SHIB (on ETH)

– They use existing chains to function
– Easier to create (which means more scams too)

⚠️ Why It Matters:

– Coins tend to have more stability + long-term growth potential
– Tokens can 100x faster, but also crash harder
– ALWAYS check what network a token runs on before you buy it

✅ Pro Tip: Use sites like CoinMarketCap to check if it’s a coin or a token + which chain it's on before trading.