When I first stepped into crypto, I saw people throwing around the words coin and token like they were the same thing.
Spoiler: they’re not.
And understanding the difference will help you stop buying into hype — and start making informed decisions.
Coins = Native to Their Own Blockchain
Coins have their own blockchain. They’re like the engine of the ecosystem.
Examples:
Bitcoin ($BTC ) — runs on the Bitcoin network
Ethereum ($ETH ) — runs on the Ethereum blockchain
BNB($BNB )— powers BNB Chain
These aren’t just currencies. They secure the network, pay gas fees, and sometimes let you vote on proposals (if staking is involved).
If it runs on its own chain, it’s a coin.
Tokens = Built on Top of a Blockchain
Tokens are created on another blockchain. They don’t need their own chain — they just borrow one.
Most tokens live on Ethereum, BNB Chain, or Polygon.
Think of them as apps running on operating systems.
Examples:
USDT — A stablecoin that exists on multiple chains (Ethereum, Tron, etc.)
UNI — The governance token of Uniswap, built on Ethereum
SAND — From The Sandbox metaverse, also built on Ethereum
Tokens follow standards like ERC-20 or BEP-20, depending on the chain they live on.
Why This Matters
Knowing whether you’re dealing with a coin or a token tells you:
How secure the asset is
Who controls it (native chain vs. a project on top)
What gas fees you’ll pay when moving or trading it
If the project has real value, or is just another token copy-pasted into existence
It’s easy to be fooled by a cool name or low price. But when you check the foundation — coin or token — you start seeing what’s solid and what’s fluff.
A Simple Rule to Remember:
All coins are tokens, but not all tokens are coins.
Coins are like houses. Tokens are like tenants.
Follow @mythoughts — no hype, just thoughts.
