Glossary Term
Coin
A coin is a type of cryptocurrency that operates on its own native blockchain, serving as a digital currency or a foundational asset for its ecosystem—distinct from tokens, which are built on top of existing blockchains like Solana.
Beginner
General
Crypto Terminology
Coin: what is it?
Examples
- 1
SOL (Solana): The native coin of the Solana blockchain.
- 2
BTC (Bitcoin): The pioneering digital coin and blockchain.
- 3
ETH (Ethereum): Ethereum’s native coin.
- 4
Other blockchain-native coins: ADA (Cardano), AVAX (Avalanche).
Common Use Cases
Paying network and transaction fees.
Staking and validating blocks for network consensus.
Facilitating transfers and value storage.
Backbone for all applications and tokens residing on the protocol.
Pro Tips
💡
Always distinguish between coins (native to their networks) and tokens (built atop existing chains).
💡
Holding coins like SOL typically grants you the ability to participate in network security (staking) and governance.
💡
Monitor coin-related metrics for insight into the network’s health and usage.