What Is a Coin vs Token

What Is a Coin vs Token?

When learning about crypto, you’ll often hear people talk about coins and tokens. But what is the difference? Let’s break it down in simple words.


What Is a Coin?

A coin is a cryptocurrency that works on its own blockchain.

Examples:

  • Bitcoin (BTC) runs on the Bitcoin blockchain.

  • Ethereum (ETH) runs on the Ethereum blockchain.

  • Litecoin (LTC) runs on the Litecoin blockchain.

Coins are usually used as digital money — to buy, sell, or store value.


What Is a Token?

A token is built on top of another blockchain.

It doesn’t have its own blockchain — it uses an existing one, like Ethereum or Binance Smart Chain.

Examples:

  • USDT (Tether) is a token on Ethereum and other chains.

  • Shiba Inu (SHIB) is an Ethereum-based token.

  • Chainlink (LINK) is also a token.

Tokens are often used for apps, games, DeFi, or governance — not just as money.


Key Differences: Coin vs Token

FeatureCoinToken
Has its own blockchain?✅ Yes (e.g., Bitcoin)❌ No (uses another chain)
Main useDigital moneyApps, DeFi, NFTs, more
ExampleBTC, ETH, LTCUSDT, SHIB, LINK

What About Altcoins?

Altcoins are any cryptocurrencies other than Bitcoin.

  • Some altcoins are coins (like Ethereum, Litecoin).

  • Some altcoins are tokens (like Uniswap, AAVE).

So both coins and tokens can be considered altcoins.


Final Thoughts

So, what is coin vs token?

  • A coin runs on its own blockchain and is used like money.

  • A token runs on another blockchain and can be used for many things.

Both are part of the crypto world — and now you know the difference!

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