Coin vs Token — the fundamental difference
A coin is a cryptocurrency with its own blockchain. Bitcoin (BTC), Ethereum (ETH), Solana (SOL), BNB — each has its own network. A token lives on someone else's blockchain. USDT, LINK, UNI are all ERC-20 tokens on the Ethereum network.
Layer-1 blockchains
- Ethereum (ETH) — largest smart contract ecosystem, PoS since 2022.
- Solana (SOL) — ~65,000 tps, low fees, Proof-of-History
- BNB Chain — centralized, Binance ecosystem, cheap fees
- Avalanche (AVAX) — subnet architecture, EVM compatible
- Cardano (ADA) — peer-reviewed academic approach, PoS (Ouroboros)
Meme coins
Meme coins (Dogecoin, Shiba Inu, Pepe, Bonk) have no technical innovation — value is based purely on community and sentiment. They can rise 100x in a short time — but can also lose 90%+ in weeks.
Tokenomics — why it matters
- Total supply — total number of tokens (limited or unlimited?)
- Circulating supply — how many are currently in circulation
- Vesting schedule — when can the team and investors sell?
- Distribution — too concentrated in few addresses = risk
- Inflation rate — are new tokens being continuously emitted?
Altcoin season
"Alt season" is a period when altcoins generally outperform Bitcoin. It typically comes in the late bull market. The BTC dominance index (BTC.D) falls as capital flows into altcoins — track BTC.D as a signal.