Coins & tokens. What is the difference?

The words “coin” and “token” are often used interchangeably. However, there is a big difference between them.

Coins:

✔️ operate on their own blockchains;

✔️ function as virtual money.

Examples: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC).

Tokens:

✔️ do not have their own blockchains;

✔️ provide access to the company services (utility tokens) or serve as digital versions of financial securities (security tokens).

Examples: Tether (USDT), Uniswap (UNI), Chainlink (LINK), Froge Finance (FROGE).

WhiteBIT Team