A coin (from Coin) is a unit of cryptocurrency that has its own independent blockchain. It is precisely the presence of its own network that distinguishes a coin from a token, which is issued on top of someone else's blockchain. The word "coin" is traditionally part of the names of many cryptocurrencies, reflecting their payment nature.
How a coin differs from a token
This is one of the basic distinctions that is important for a newcomer to understand. A coin functions as an independent currency of its own network, whereas a token depends on the infrastructure of the host platform.
- a coin has its own blockchain and issuance rules;
- a coin is usually used to pay fees in its own network;
- a token is issued on a ready-made platform according to its standards.
Coins serve as a means of settlement, a store of value, and a reward for participants who support the network. Understanding the difference between a coin and a token helps one navigate the structure of the market more competently and assess the purpose of a specific asset.
