Coins and Tokens Simplified

First, what is a coin?

  1. Serves as money: The central idea behind coins is that they will be able to work in place of traditional currencies like the dollar, rand or euro. Today, you can buy anything from merchandise to services and artwork using crypto coins. Bitcoin is even a legal tender in El Salvador alongside the U.S. dollar.
  2. It operates on a dedicated blockchain: Coins are best described as cryptocurrencies that run on their dedicated blockchain. Bitcoin for example is built on the Bitcoin blockchain. In contrast, Shiba Inu is a token since it runs on a borrowed blockchain, “Ethereum”.

Types of tokens

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