What's the difference between a COIN and a TOKEN and why should you care?

COINS are the big shots in the crypto space, they have their own Blockchains and act as digital currencies.

Think of Bitcoin and Ethereum, these are the backbone of the crypto market.They don't rely on anyone else's infrastructure, they have their own.

Now TOKENS are a bit different, they don't have their own Blockchain. Instead, they live on top of another blockchain. Usually Ethereum, but sometimes Binance Smart-Chain or Solana.

So, while coins are stand-alone currencies, tokens are like apps that run on someone else's system.

TOKENS serve all sorts of purposes. They can represent assets, give voting rights, be used in decentralized finance, DeFi platforms or even represent ownership in NFTs

But here's the kicker- Just because it's called a token doesn't mean all tokens are thesame, they can be used for different things. And some have real value based on their platform or project, while others might just be speculated hypes.

So why should you care? Knowing whether you're dealing with a coin or a token helps you understand its role in the market.

Coins are more about Long-term storage of value like Bitcoin, while Tokens on the other hand are often more dynamic and serve specific functions within platforms and networks. But tokens can also be riskier because their value is tied to the success of the platform they are built on.

When you're deciding where to put your money it's important to understand the difference. Coins are like solid real estate in the crypto world. Tokens are more like the potential of new flashy startups. Some might make it big and others could flop.

Understanding the difference helps you navigate the space and make smarter investment decisions.