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← Tokens and ICOs
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Question
What is the difference between a coin and a token in the cryptocurrency context?
1
Coins have higher market capitalisations while tokens are smaller altcoins with lower liquidity
2
Coins are regulated financial instruments while tokens are unregulated and only traded on decentralised exchanges
3
Coins use proof-of-work consensus while tokens use proof-of-stake
4
Coins are the native currencies of their own blockchain (like BTC on Bitcoin, ETH on Ethereum); tokens are created on top of an existing blockchain using smart contracts and do not require their own network infrastructure
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