Concept

A cryptocurrency coin (crypto coin) is a native crypto (native asset) to their own blockchain. It is a type of cryptocurrency that represents a digital version of money (currency) consisting of a series of data blocks chained together cryptographically. It is the native asset created on its own blockchain network. Such crypto coins are meant to mimic traditional currencies (coins) as full-fledged money (medium of exchange, store of value, and measure of value). Crypto coins operate on a blockchain where all the records for transactions involving a specific type of coin are maintained and can be easily and securely tracked. Payment by a crypto coin entails recording of the transaction and its receipt on the blockchain. Examples of crypto coins include Bitcoin and Ethereum. The Bitcoin blockchain coin is BTC. The Ethereum blockchain has ETH. And the Litecoin blockchain uses LTC. These crypto coins are primarily created to store value and function as a medium of exchange, similar to traditional currencies. Generally, crypto coins are either created using a proof of work (PoW) consensus mechanism or earned via a proof of stake (PoS) mechanism.

Uses

Bitcoin, the first cryptocurrency coin, was envisioned as a practical and efficient replacement for fiat currencies. As a crypto coin, it was designed to function as paper money and metal coins, particularly as a store of value and medium of exchange. Over time, the concept and practical use of crypto coins evolved to serve functions such as exchanging for other currencies, paying for goods and services (as a means of payment and unit of account), and in transferring values between market participants. In addition to such traditional uses, certain crypto coins can offering extra features, taking advantage of smart contract technology. For example, altcoins (e.g., DASH) serve as a cryptocurrency but also allows holders to exercise voting rights in a decentralized autonomous organization (DAO)- or the so-called DAO tokens.

Examples

Crypto coins are a form of digital currency that are often native (native assets/ native tokens) to a blockchain, designed to function as a store of value and a medium of exchange. For example, Ether (ETH) is categorized as a coin because it represents the native asset on the Ethereum blockchain. However, Dai (DAI), Uniswap (UNI), and Aave (AAVE), for example, are classified as tokens because they are projects built on top of the Ethereum blockchain.