Token vs Coin: What’s the Difference in Crypto?
In the world of cryptocurrencies, coins and tokens are two essential concepts — but they are not the same thing.
Let’s break it down simply so you can understand the key differences.
What is a Coin?
A coin is a cryptocurrency that runs on its own independent blockchain. It is usually used as money: for buying, selling, storing value, or paying transaction fees.
Key Features of Coins:
Operate on their own blockchain.
Primarily used as currency or medium of exchange.
Native to their blockchain.
Examples of Coins:
| Coin | Blockchain |
|---|---|
| Bitcoin (BTC) | Bitcoin Blockchain |
| Ethereum (ETH) | Ethereum Blockchain |
| Litecoin (LTC) | Litecoin Blockchain |
| Solana (SOL) | Solana Blockchain |
What is a Token?
A token is a cryptocurrency that is built on top of an existing blockchain (not its own).
Tokens represent assets, utilities, or even rights inside a specific ecosystem.
Key Features of Tokens:
Built on existing blockchains like Ethereum, Solana, BNB Chain, etc.
Can represent ownership, access, or value inside apps and platforms.
Used in DeFi, NFTs, gaming, and more.
Examples of Tokens:
| Token | Built on Blockchain | Purpose |
|---|---|---|
| Uniswap (UNI) | Ethereum | Governance in Uniswap DEX |
| USDT (Tether) | Ethereum, Tron | Stablecoin pegged to USD |
| Chainlink (LINK) | Ethereum | Decentralized oracles |
| AXS (Axie Infinity) | Ethereum | Gaming rewards |
Main Differences Between Coin and Token
| Feature | Coin | Token |
|---|---|---|
| Blockchain Ownership | Has its own blockchain | Built on another blockchain |
| Purpose | Currency, payment, store of value | Utilities, access, governance, NFTs |
| Examples | Bitcoin, Ethereum, Solana | Uniswap, Chainlink, USDT |
| Creation | Through native blockchain coding | Through smart contracts |
| Transaction Fees | Payable with the coin itself | Payable using the host blockchain’s coin (e.g., ETH for ERC-20 tokens) |
Simple Way to Remember
Coins = Blockchain = Currency
Tokens = Application Layer = Assets
If you are buying ETH to pay gas fees, you’re using a coin.
If you are buying an NFT or a governance token inside a dApp, you’re using a token.