What is the difference between coins and tokens in the crypto industry?

1 answers

• Dec 26, 2021 · 3 years ago
  In the crypto industry, coins and tokens are often used interchangeably, but they do have distinct differences. Coins, like Bitcoin and Litecoin, are typically used as a form of digital currency. They have their own blockchain networks and operate independently. On the other hand, tokens are created on existing blockchain platforms, such as Ethereum or Binance Smart Chain, and represent a specific asset or utility within a project or ecosystem. Tokens can have various functions, such as enabling access to certain services, participating in governance, or representing ownership of a physical or digital asset. So, while both coins and tokens are digital assets, coins are standalone currencies, while tokens are more versatile and can represent different things within a specific blockchain ecosystem. I hope this clarifies the difference between coins and tokens in the crypto industry.
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