6. What is the Difference Between a Coin and a Token? 🪙🔗
In the world of cryptocurrency, coins and tokens are both digital assets — but they serve different purposes and work in different ways.
🪙 What is a Coin?
A coin is a cryptocurrency that runs on its own independent blockchain. It is mainly used as a digital currency or a store of value.
✅ Examples of Coins:
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Bitcoin (BTC) – runs on the Bitcoin blockchain
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Ethereum (ETH) – runs on the Ethereum blockchain
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Litecoin (LTC) – has its own blockchain
Coins are usually used for:
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Payments
-
Storing value
-
Mining or staking rewards
🪙🔖 What is a Token?
A token is built on top of another blockchain. It does not have its own blockchain, and relies on platforms like Ethereum, BNB Chain, or Solana.
✅ Examples of Tokens:
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Shiba Inu (SHIB) – built on Ethereum
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PancakeSwap (CAKE) – built on BNB Chain
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USDT (Tether) – exists on multiple chains
Tokens can represent:
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Utility (used in apps like games, exchanges)
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Governance (used for voting in DAOs)
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Stablecoins (like USDT or USDC)
🔍 Summary:
| Feature | Coin | Token |
|---|---|---|
| Own Blockchain | ✅ Yes | ❌ No |
| Example | BTC, ETH, LTC | SHIB, USDT, CAKE |
| Use Case | Payments, value storage | Utility, access, governance |
