What is the difference between a coin and a token?
a) Coins operate on their own blockchain, while tokens are built on an existing blockchain
b) Tokens are a type of hardware wallet
c) Coins are less secure than tokens
d) Coins can only be used for payments
Answer:
a) Coins operate on their own blockchain, while tokens are built on an existing blockchain
Explanation:
The key difference is that coins operate on their own blockchain (e.g., Bitcoin, Ethereum), while tokens are built on top of existing blockchains (e.g., ERC-20 tokens on Ethereum).