“Coin” is a term that is originally used to refer to a currency in its physical sense. In the crypto sector, the definition of coin is digital currency native to a blockchain, which is why a coin is also called a Layer 1 token. Cryptocurrencies, in general, are divided into coins and tokens. The first difference between them concerns the blockchain on which these two different types of digital currencies are created. When developers decide to release a blockchain, the cryptocurrency originating from this blockchain is a coin. Some examples of coins are ETH which comes from the Ethereum blockchain, SOL from Solana, AVAX from Avalanche. If developers instead intend to create a crypto for their project without building a new blockchain, they can use an existing third-party chain. In this case, the cryptocurrency is said to be a token: although they are bound to a blockchain, they only contribute to the development of their project. The most famous example of a token is the ERC-20 type, the token based on the Ethereum standard of the same name. Tokens are typical of dapp and DeFi protocols, some of the best known being SAND, BAT, YFI. 

A coin is thus independent of other blockchains (and other coins) and has its own economic system. Bitcoin is the first coin to have been created, born in 2009 from Satoshi Nakamoto’s code.

By definition, a coin also differs from a token in its functionality. While a coin performs the functions of a currency (medium of exchange, unit of account, store of value), a token can be used for different purposes. In general, a token with a specific function is called a utility token: they are used to perform transactions in dapps, others to manage the governance of a project, or to access services in a crypto ecosystem (such as the Young token, YNG). NFTs are also tokens, specifically non-fungible tokens. There is a third type of tokens, called security tokens, which differ from utility tokens in that they are shares or securities issued by a company, essentially to allow one to participate in its profits.

The term “coin”, as well as “token”, is also used to refer to a single unit of a cryptocurrency. When you are asked to pay 2 ALGOs, you are paying 2 coins. The circulating supply indicates the number of coins circulating in the market, the market cap on the other hand is the total value of all coins in circulation, which is obtained by multiplying the price of the coin by the circulating supply.

Coins can be distributed through ICOs or IEOs. An ICO is defined as an ‘initial coin offering’, i.e. a fundraising campaign initiated by a project before launching its cryptocurrency. ICOs consist of sales of cryptocurrencies (coins or tokens) to users interested in the project, which presents its business plan and mission through whitepapers. Ethereum ICOs spread this practice: they were widely used in the period between 2014 and 2018 but, due to their limitations, were replaced by IEOs. IEOs share the objective of ICOs but are managed by exchanges that act as intermediaries between projects and users.

Correlated words


Hawkish monetary policies involve raising interest rates to combat inflation, prioritising monetary stability and economic control.


Dovish monetary policy is characterised by low-interest rates and higher employment levels, aiming to stimulate and foster economic growth.


Registries are organizations overseeing the administration and management of top-level domain information on the internet.


A URL (Uniform Resource Locator) is a unique string of characters that provides the address of a specific resource on the World Wide Web.

IP address

An IP Address is a unique numerical label assigned to each device connected to a network, identifying it for communication purposes.

Web 3.0

Web 3.0, often linked to the Semantic Web, signifies the next evolution of the internet, emphasizing data interoperability and user control.


ICANN (Internet Corporation for Assigned Names and Numbers) manages the global domain name system and IP address allocation.


Registrars are organizations responsible for the registration and management of domain names on the internet.


The Domain Name System (DNS) is a hierarchical structure that maps domain names to their corresponding IP addresses on the internet.


The Top-Level Domain (TLD) is the highest part of the domain name structure, appearing at the end of web addresses.

Financial Market

The Financial Market is a structured space for trading financial securities, including stocks, bonds, and other investment vehicles.


Cashback is a reward program where a portion of the amount spent on a transaction is returned to the spender.


Web3 marks the third evolution of the web, characterised by a shift in the economic and technological landscape driven by blockchain.


Bitcoin is the first and most enduring cryptocurrency, introducing blockchain technology as a revolutionary digital ledger system.

Wallet address

The Wallet address is a unique string of characters identifying a cryptocurrency wallet for transactions and asset management.


Stablecoins are cryptocurrencies whose value is pegged to stable assets like fiat currencies or precious metals, aiming to reduce volatility.


Custody in cryptocurrency involves managing a wallet by oneself, ensuring control over the associated private key.

White Paper

A White paper is a detailed document used by crypto projects to outline their technological innovations and proposals.


A Wallet is a digital software designed for securely sending, receiving, and storing various cryptocurrencies.

Virtual Currency

Virtual Currency is a legal term encompassing digital currencies, including cryptocurrencies, used in various financial transactions.

Fiat Currency

Fiat Currency is government-issued legal tender, not backed by physical commodities, serving as the standard medium of exchange.


A Token is a digital asset created on an existing blockchain, representing value or utility within its native ecosystem.

Satoshi Nakamoto

Satoshi Nakamoto, the pseudonymous creator(s) of Bitcoin, remains a mystery with no known true identity and no current online presence.


Open-source software offers publicly accessible source code, allowing collaborative use, modification, and distribution.


KYC (Know Your Customer) is an identity verification process mandated by European regulations for Financial intermediaries.

Hard Fork

A Hard Fork represents a significant split in a blockchain due to protocol incompatibilities between new and existing versions.

Hot Wallet

A Hot Wallet is a cryptocurrency wallet that remains connected to the internet, offering easy access and management of digital assets.


Halving refers to the event where the reward given to miners for producing blocks on the Bitcoin blockchain is cut in half.


FinTech combines finance and technology, where companies innovate in financial services using advanced technological solutions.


Cryptography, a crucial component of secure communication, is the study and application of techniques for protecting information.


Cryptocurrency is a digital or virtual currency using cryptography for security, operating on a decentralised blockchain system.

Public Key

A Public Key is a unique cryptographic code for identifying a blockchain cryptocurrency wallet and is associted with a private kwy..

Private Key

A Private Key is a unique secure cryptographic code granting access to a cryptocurrency wallet and is associated with a public key.


APIs (Application Programming Interfaces) streamline the development of applications and web services by integrating functionalities.


Altcoins are cryptocurrencies launched after Bitcoin, offering alternative blockchain-based solutions and functionalities.


Anti-Money Laundering (AML) regulations are designed to prevent illegal activities and financial crimes in centralised exchanges.


An algorithm is a set of procedures or rules designed to perform specific tasks or solve problems integral to software development.


Exchanges provide services for buying and selling digital assets, operating on market-driven prices and facilitating cryptocurrency trade.

Download the Young Platform app

Downaload From Google PlayStoreDownaload From Apple Store