What is the difference between a Coin and a Token

Coins and Tokens are digital assets used in the realm of cryptocurrencies and blockchain technology.

Coins operate on their own independent blockchain networks and function primarily as digital currencies. Examples include Bitcoin and Ethereum.

Tokens, on the other hand, rely on existing blockchain platforms, like Ethereum or Binance Smart Chain, and represent various assets, utilities, or functionalities within specific projects or ecosystems.

Tokens can be created through smart contracts and are used in ICOs, DApps, and blockchain projects.
While coins have their own blockchain infrastructure, tokens leverage existing blockchains.

Coins are designed for exchange purposes, while tokens serve multiple functions.

Coins are created through mining, while tokens are created through smart contracts.
Coins are generally not interoperable, while tokens can be transferred between platforms that support the same blockchain standard.

The distinction between coins and tokens can sometimes be blurred, and the cryptocurrency space continues to evolve with new concepts and terms.

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