New: Wallet recovery made easy with Ledger Recover, provided by Coincover

Get started

Up your Web3 game

Ledger Academy Quests

  • Test your knowledge
  • Earn POK NFTs
Play now See all quests

Coin Meaning

May 5, 2023 | Updated May 24, 2023
A coin is a digital asset that functions as a currency or store of value on its own blockchain network.

What is the Meaning of Crypto Coin?

Coin is a digital asset that operates independently on its own blockchain and does not rely on the blockchain of other cryptocurrencies. Coins are primarily utilized as a means of payment, exchange, or as a store of value within a specific network.

Bitcoin is a cryptocurrency that operates on its own blockchain and is considered a coin because it functions as a digital currency that can be used for transactions. 

Coins vs Tokens: What is the Difference?

A crypto coin has its own independent blockchain network and serves a specific purpose. They are typically designed to function as a digital currency, meaning that they are used as a medium of exchange for goods and services. 

Coins have their own unique blockchain, which is used to process and verify transactions on the network. While tokens can provide holders with voting rights, pay for fees, incentivize users, or denote cloud storage capacity, coins are meant to be stores of value. 

A token, on the other hand, refers to a digital asset that is created and operates on top of an existing blockchain infrastructure, such as Ethereum. Unlike coins, tokens do not have their own independent blockchain but instead rely on an existing blockchain infrastructure for their operation.

Example of Crypto Coin

Ethereum is considered to be a coin because its native cryptocurrency, Ether (ETH), functions as a digital currency that can be used to facilitate transactions and pay for network fees on the Ethereum platform. Ether is used to incentivize network participants to validate transactions and execute smart contracts on the Ethereum blockchain. Similar to Bitcoin, Ether also operates on its own blockchain

Derivatives

Derivatives are products or contracts that obtain their value from an underlying asset like stocks, bonds, commodities, or cryptocurrencies.

Full definition

Mainnet

A Mainnet is a blockchain that is independent, complete, and runs by itself, where all crypto transactions are broadcasted, verified, processed, and recorded on its distributed ledger.

Full definition

Dencun

Dencun is an upgrade on the Ethereum blockchain aimed to improve its performance by optimizing execution efficiency and data availability within the network.

Full definition