Digital coins are generally used the same way as real-life money in your wallet. For example, Bitcoin can be used to pay for goods and services all over the internet and often in real-world places too. You can store it for a long time or swap it for something of equal value.
Other digital coins, such as Ether, NEO, and DASH, can be used in different ways than just as a form of money. For example, Ether (ETH) is used for transactions on the Ethereum network. It is needed to send a token and fund the mining costs.
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People who are new to cryptocurrency often confuse the term "token" and "coin". This guide defines the two terms and provides some examples for a better understanding.
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