In the world of cryptocurrencies, we often hear the terms Coin and Token, but many new traders confuse them.
✔ Understanding the difference between Coin and Token gives you clearer insights and greater opportunities for successful investment in the market.
🔹 Here is the difference between Coin and Token:
First: Coin:
(Coin) is the basic digital currency that operates on its own blockchain.
Examples include: Bitcoin (BTC), Ethereum (ETH), and BNB.
They are usually used as a means of storage, payment, and transfer within their network.
✅ In short: any currency with an independent blockchain is considered a Coin.
Second: Token:
(Token) is a digital asset created on an already existing blockchain.
For example, currencies like USDT or Shiba Inu operate on the Ethereum network.
These tokens can be linked to products, services, games, or even DeFi projects.
✅ In short: a token is a flexible tool for building projects on blockchain platforms.
🔹 The essential difference:
✅ Coin = Infrastructure (native currency + private blockchain).
✅ Token = Project or application that operates on the Coin's infrastructure.
⁉ Why is it important for you to know the difference between Coin and Token as an investor?
✔ Investing in Coin often reflects confidence in the underlying infrastructure of the network.
✔ Investing in Token gives you the opportunity to participate in innovative projects that may achieve massive growth in a short time.
📎 Summary:
If you want a solid foundation, turn to Coins, but if you are looking for rising opportunities and diverse projects, Tokens are your world.
