Coin Currency Vs Paper Money
Coin currency is a piece of metal or, rarely, other material that has been certified by a mark or marks upon it as being of a specific intrinsic or exchange value. The first coins were made of precious metals like gold or silver around 600 BC in ancient Lydia (modern-day Turkey). Their standardized weight and value made them easier to trade than other commodities such as grains or livestock. Coins quickly spread to other parts of the world.
Although paper money has a place in today’s global economy, coins remain an essential form of currency. They differ from paper in their physical characteristics (size, weight and durability), historical development (origin and evolution), value determination (intrinsic or extrinsic) and management methods.
Generally speaking, coin is smaller, heavier and more durable than paper money. It is less prone to wear and tear and damage from water or fire, but more prone to corrosion and oxidation. Coin is more easily carried in small quantities and stored safely, but can be difficult to carry in large amounts and more prone to theft or loss.
Paper money has a distinct advantage over coin, however: It is much lighter and more portable than coins. It can be stored in a wallet or purse, and is more easily retrieved when needed than a stack of coins that may require some searching to find. Paper money can also be stored in a more secure manner than a coin.
While it is illegal to alter a coin to make it more valuable, it is not necessarily illegal to melt or destroy coins that have lost their monetary value. The Bureau of Engraving and Printing offers a guide for determining a coin’s value, but it is ultimately up to the individual to determine whether destroying a coin or note is legal or not.
If you have old, worn (“uncurrent”) coins that you no longer want, consider taking them to your local bank or a retailer that offers coin-counting services. Some of these services allow you to exchange coins for gift cards for free or donate them to charity. You can also bring them to a Federal Reserve Bank, which will purchase them at face value. It is important to remember, though, that the value of coins depends on their demand. It is not insured by the Securities Investor Protection Corporation or Federal Deposit Insurance Corporation, and they are subject to market fluctuations just like other investments. If you are considering making a substantial investment in coins, consult with an experienced financial professional before proceeding. In addition, there are many scams associated with cryptocurrencies that you should be aware of.