In the context of cryptocurrencies, a “token” and a “coin” are often used interchangeably, but there are some technical differences between them.

A coin typically refers to a cryptocurrency that operates on its blockchain, has its network, and can be used as a means of payment or store of value. Examples of coins include Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).

On the other hand, a token refers to a type of cryptocurrency that is built on top of an existing blockchain, such as Ethereum’s blockchain. Tokens are created using smart contracts and are often used to represent assets or utilities within a specific application or ecosystem. Tokens do not have their blockchain but rely on the underlying blockchain for security and transaction processing. Examples of tokens include ERC-20 tokens such as USDT, UNI, and LINK.

In summary, coins are stand-alone cryptocurrencies that operate on their blockchain, while tokens are built on top of an existing blockchain and are used to represent assets or utilities within a specific application or ecosystem.

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