What is Token and What is Coin in Cryptocurrency

In this article I will help you distinguish the difference between the two in a much simple way.

First, let’s examine the common term for both which I also knew the reason why you are here. According to Wikipedia, “In computer science, a cryptocurrency, crypto-currency, or crypto is a digital currency that does not rely on any central authority to uphold or maintain it. Instead, transaction and ownership data is stored in a digital ledger using distributed ledger technology, typically a blockchain.

Both can be used enterchangeably when discussing about cryptocurrency but when it comes to a more technical coversation you must be able to defferentiate the difference between the two.

Let’s start our differentiation using the following question and will discuss further later the answers.

  1. What do you use to pay for gas fees during your crypto transaction?
  2. Can you perform a crypto transaction within the network without holding the amount of Coin of that network?
  3. Can there be a multiple Coin within the network?
  4. Can there be a multiple Token within the network?
  5. Which one is defined by smart contract?
  6. Does Bitcoin have token?

Let’s get one-by-one.

What do you use to pay for gas fees during your crypto transaction? Answer: Coin.

Coin is a native asset of specific blockchain network.

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