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[Music] sometimes used as synonyms but coins and tokens refer to two completely different concepts lets start with coins also called cryptocurrency coins or altcoins coins are digital money created using encryption techniques that store value over time basically its a digital equivalent of money bitcoin is the most famous example based on blockchain public and distributed digital ledger data is stored collectively and shared between participants of the blockchain network blockchain guarantees transparency and reduces fraud coins have the same characteristics as money they are fungible divisible acceptable portable durable and have limited supply coins are not meant to perform any function beyond acting as money they can be used to invest hold buy and sell things tokens are digital assets used by the project which can be used as a method of payment inside the projects ecosystem performing similar function with coins but the main difference is that it also gives the holder a right to