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Although many cryptocurrencies share an infrastructure based on blockchain technology, there are significant differences between them. Broadly speaking, cryptocurrencies can be grouped into two categories: coins and tokens.
A coin is any cryptocurrency that uses its own independent blockchain. For example, Bitcoin is considered a currency because it runs on its own infrastructure. Likewise, Ether operates through the Ethereum blockchain.
The term altcoin is used to refer to any currency other than Bitcoin. Many altcoins work in a similar way to Bitcoin. However, others, like Dogecoin, are quite different. For example, Doge offers an unlimited supply of coins, compared to Bitcoin's 21 million coin limit.
Like coins, tokens are also digital assets that can be bought and sold. However, tokens are a non-native asset, which means that they use the infrastructure of another blockchain. These include Tether, which is hosted on the Ethereum blockchain, and others like Chainlink, Uniswap, and Polygon.
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