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
| Feature | Coin | Token |
|---|---|---|
| Has its own blockchain? | ✅ Yes (e.g., Bitcoin) | ❌ No (uses another chain) |
| Main use | Digital money | Apps, DeFi, NFTs, more |
| Example | BTC, ETH, LTC | USDT, 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!
