Understanding Crypto: Coins vs. Tokens
In the realm of cryptocurrency, the terms "coins" and "tokens" are often used interchangeably, leading to confusion among newcomers and seasoned investors alike. While both represent digital assets in the broader cryptocurrency ecosystem, they serve different purposes and have distinct characteristics. Understanding the differences between coins and tokens is crucial for navigating the complex world of cryptocurrencies effectively. Coins: Cryptocurrency coins are native digital currencies that operate independently on their own blockchain networks. These coins are typically created as a form of digital cash or a medium of exchange. Bitcoin , the pioneering cryptocurrency created by Satoshi Nakamoto in 2009, is the most well-known example of a coin. Key characteristics of coins: Independent Blockchain: Coins have their own dedicated blockchain networks, which serve as decentralized ledgers to record all transactions. These blockchains operate autonomously and are