When you start exploring the world of cryptocurrencies, you will encounter two very important terms:
**"Coin" (currency)** and **"Token" (symbol)**
Although the two words seem similar, there is an important difference between them.
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🟢 First: What is a Coin?
A Coin is a digital currency that has its **own network** or what is called "its own blockchain."
🔹 **Examples of Coins:**
* **$BTC ** – operates on its own Bitcoin network.
* **$ETH ** – has its own blockchain.
* **$BNB (Binance currency)** – operates on the BNB Chain.
📌 **Summary:** Each currency has an independent network built upon which applications are built and transactions are sent.
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🟠 Secondly: What is a Token?
A Token is a digital currency **created on an already existing network**.
Does not have its own blockchain, but relies on another network like Ethereum or BNB.
🔹 **Examples of Tokens:**
* **USDT (Tether)** – a token that operates on several networks like Ethereum and BNB.
* **SHIBA INU (SHIB)** – a token on the Ethereum network.
* **PEPE** – a token launched on Ethereum.
📌 **Summary:** A token is like a guest living in someone else's house (another network).
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🧠 A simple example for clarification:
* Imagine that every Coin is a **completely independent building**.
* Each Token is a **unit within an already existing building**.
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⚙️ Who uses Coin and who uses Token?
* **Coins** are mainly used as a means of payment, or as a primary asset on the network.
* As for **Tokens**, they are used for various purposes such as:
* Payment within a specific application
* Governance and voting
* Access to special services
* Representation of ownership of something (like NFT)
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⚠️ Notes for beginners:
* Do not assume that everything you see in the market is a "real currency" (Coin) – most are Tokens.
* Every Coin is a currency, but **not every Token is a Coin**.
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📌 In conclusion:
Your understanding of the difference between Coin and Token is very important to understand the currency project and assess its strength.
Projects that build their own network (Coin) require more effort and resources, while tokens are quicker to launch but rely on others' infrastructure.
