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💡 Key
→ Coins operate on their own independent blockchain
→ Tokens do not have their own blockchain
→ Coins can function as money
→ Tokens typically offer much more functionality than coins
→ Tokens are easier to create than coins
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Coin
- A coin is a cryptocurrency that is native to the blockchain it runs on.
- example → Bitcoin, Ethereum, XRP
Token
- A token is a digital unit of value that represents an asset or utility.
- Tokens are always created on existing blockchains. So there are token standards for each blockchain, which is a framework for creating tokens.
- example → Tether, USD Coin, Binance USD
- Security Tokens vs. Utility Tokens