Coin condition refers to the state of a coin's physical appearance and quality, which can significantly affect its value. Coins are graded based on factors such as wear, scratches, and overall cleanliness. Common grading terms include Uncirculated, Fine, and Good, each indicating different levels of preservation. The condition of a coin is crucial for collectors and investors. A coin in better condition typically commands a higher price in the market. Factors like rarity and demand also play a role, but the coin's condition remains a primary consideration for determining its worth.