A coin is a digital currency created by a blockchain protocol and used to facilitate transactions, incentivize network security, or support decentralized applications (dApps) on its platform.
Coin
What Is a Coin in Cryptocurrency?
A cryptocurrency coin is a digital currency created by a blockchain protocol and used to facilitate transactions, incentivize network security, or support decentralized applications (dApps) on its platform.
Examples of well-known coins include:
- Bitcoin (BTC) – Native coin of the Bitcoin blockchain.
- Ethereum (ETH) – Native coin of the Ethereum blockchain.
- Solana (SOL) – Native coin of the Solana blockchain.
- BNB – Native coin of BNB Smart Chain.
These coins are essential for paying transaction fees (gas), staking, governance participation, and network rewards.
Coin vs Token: What’s the Difference?
In the world of cryptocurrency, a coin refers to a digital asset that operates on its own native blockchain. Coins are used primarily as a medium of exchange, a store of value, or a unit of account within their respective ecosystems. Unlike tokens, which rely on external blockchains, coins are native to the blockchain networks they support.
Tokens rely on the infrastructure of a coin's blockchain to function. For example, Uniswap (UNI) is an Ethereum-based token that cannot exist independently without Ethereum.
Why Understanding Coins Matters in Crypto
Recognizing the difference between coins and tokens is fundamental for anyone involved in crypto investing, blockchain development, or DeFi participation. Coins often represent the core security and utility layer of a blockchain ecosystem, whereas tokens serve more specific or application-level roles.
