Let’s skip market talk today and cover a basic concept.
What’s the difference between a native coin and a token?
Put simply, a token is an asset issued using a smart contract on an existing public blockchain, such as an ERC-20 token on Ethereum or a BEP-20 token on BNB Smart Chain.
You need to keep a little native coin in your wallet to pay transaction fees; otherwise, your tokens will be stuck and you won’t be able to move them.
$ETH is Ethereum’s native coin. You also need to use $ETH to pay gas when transferring tokens on Ethereum.
Did I explain that clearly? Let me know if anything’s unclear.
What’s the difference between a native coin and a token?
Put simply, a token is an asset issued using a smart contract on an existing public blockchain, such as an ERC-20 token on Ethereum or a BEP-20 token on BNB Smart Chain.
You need to keep a little native coin in your wallet to pay transaction fees; otherwise, your tokens will be stuck and you won’t be able to move them.
$ETH is Ethereum’s native coin. You also need to use $ETH to pay gas when transferring tokens on Ethereum.
Did I explain that clearly? Let me know if anything’s unclear.
