Cryptocurrency is like a digital form of cash. With it, you can pay for dinner with friends, buy those new socks you’ve been looking for, or book flights and hotels for a vacation. Since cryptocurrency is digital, it can be sent to friends and family anywhere in the world.
Just like PayPal or bank transfers, right? Almost. Only much more interesting!
The truth is that all traditional gateways for online payments are owned by an organization. They provide a service for storing and transferring funds. With cryptocurrencies, you can use free software to send funds directly to other users without intermediaries. You, your friends, and thousands of others don’t need an organization. You are your own bank!
To use cryptocurrencies, you don’t need to register on the site with an email address and password. Just download the application to your smartphone and you can send/receive funds in a matter of minutes.
The main difference between tokens and coins is that coins have their own blockchain, while tokens are created within existing blockchains. Coins are used as a transaction currency and have their own independent blockchain network.
For example: Bitcoin, Ethereum, Litecoin, and BSC (Binance exchange blockchain) have their own blockchains. Tokens are created on these blockchains. To transfer tokens, you pay commissions in Ethereum or BSC.
Both tokens and coins are important parts of the crypto world. Tokens are assets with various purposes and utilities, while coins are decentralized digital currencies with independent blockchains.
For example, football clubs use fan tokens on Ethereum instead of building a blockchain from scratch. Popular blockchains: Ethereum, BSC.
Stablecoins are cryptocurrencies pegged to fiat currencies like the US dollar. Their value is stable, and they are used for payments and international transactions with very low fees.
Examples include: USDT (Tether), USDC, DAI, TUSD, FDUSD, USDP. USDT and USDC are the most reliable due to cash reserves.
Utility tokens grant access to features within a project. Used in ICOs and beyond. Examples: BAT (used in Brave browser), Filecoin (used for decentralized storage).
Utility tokens offer early access, staking rewards, discounts, and transaction payments. Limited supply can increase their value.
Meme coins are digital currencies based on internet jokes. Most famous: Dogecoin and Shiba Inu.
Other meme coins like PEPE gain value based on hype, but are more speculative and risky.
Examples: Binance, Coinbase, Kraken, OKX, KuCoin, Bybit. They offer easy interfaces, high liquidity, and support many coins.
Disadvantages: Users don’t control private keys, are vulnerable to hacks, and face regulatory limits.
If you're a long-term holder, transfer your crypto to non-custodial wallets like Trust Wallet or MetaMask.
DEX platforms use smart contracts and don’t store your funds. No registration, no KYC. Funds are managed directly from your wallet.
Benefits: anonymity, low fees, and access to DeFi lending, staking, and direct peer-to-peer trading.
Conclusion: Whether using coins, tokens, or meme coins — and whether trading on a CEX or DEX — it's essential to understand the risks and benefits. Cryptocurrency empowers users but requires careful handling.