by 
The Curious Bag
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Naval challenge coins are traded and collected souvenir coins used by commands, groups and sailors to recognize their association with the Navy.
History
After World War I, naval aviators carried a solid bronze medallion representing their unit. The first fliers to do this were actually Army Air Corps members, but naval aviators soon started following the tradition and naval challenge coins were born.
Use
Today, naval members at a bar will ask other coin owners if they have their coin on them. If they can't produce the coin, they have to buy a drink of choice for the challenger. However, if they bring out the coin, the challenger must buy.
Outgrowth
Naval challenge coins have spread from the aviators to the rest of the fleet and are routinely used by most sailors and civilians associated with the Navy.
Popularity
The popularity of the naval challenge coin is growing. Many sailors collect them and display them in offices and homes to show how many important people they've met, the units they've been attached to and the places they've traveled.
Size and Shape
The size of the coins can range from small to very large, and they are not always round. Some naval challenge coins are rectangles, octagons and triangles.
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