🪙 Coins vs Tokens

 

 

Wait, There’s a Difference?!

Coins are like digital money built on their own blockchains (think Bitcoin, Ethereum).
Tokens are built on top of someone else’s blockchain — they’re the guests at someone else's party.

Or, to put it simply…

Coins are like native money in a country.
Tokens are like coupons you use inside a shop.

 

🏗️ So what’s a Coin?

A coin is a digital currency that operates independently on its own blockchain. These are the big players that started it all.

Examples:

Bitcoin (BTC) – The original digital gold

Ethereum (ETH) – The smart contract king

Litecoin (LTC) – Like Bitcoin’s faster cousin

These coins have their own infrastructure, meaning they don’t rely on anyone else’s system. They’re used for payments, store of value, and powering networks.

 

🧳 And a Token?

Tokens live on top of existing blockchains. They use the blockchain's power but don’t have their own network.

🔑 Tokens are:

Built using smart contracts

Used in apps, games, DeFi, NFTs, DAOs, and more

Often created for a specific purpose (like voting, accessing a service, etc.)

They don't run the network — they live on the network.

🧾 Examples of Tokens:

Uniswap (UNI) – runs on Ethereum

Chainlink (LINK) – runs on Ethereum

USDT (Tether) – runs on Ethereum, Tron, and more

ApeCoin (APE) – yep, lives on Ethereum

You could say tokens are like apps in the App Store — Apple makes the iPhone (blockchain), the apps (tokens) just run on it.

Tokens don’t build their own roads. They just drive on roads that already exist.

 

Think of a blockchain like a theme park.

Coins are the owners of the park.

Tokens rent space to run their food stands or rollercoasters.

 

🧱 Why It Matters

Knowing the difference helps you:

Understand where your investment lives

See what powers a project (its own chain vs borrowed chain)

Spot the fakes more easily (not all tokens are trustworthy!)

 

🛑 A Quick Word of Caution:

Anyone can make a token. Like... anyone.
That’s why tokens are more commonly involved in scams, rug pulls, and fake hype.

Coins are harder to create and maintain — so fewer dodgy projects start from scratch.

 

Lets look at some popular coins & tokens that people use.

© Copyright. All rights reserved. 

We need your consent to load the translations

We use a third-party service to translate the website content that may collect data about your activity. Please review the details in the privacy policy and accept the service to view the translations.