When you start learning about crypto, you’ll often hear the terms coin and token. Although they’re both digital assets, they’re not the same.

🔹 What is a Coin?

A coin is commonly used as an alternative expression for cryptocurrencies that run on their own native blockchain (Distributed Ledger Technology – DLT).

✅ Examples:

  • Bitcoin (BTC) – runs on the Bitcoin blockchain

  • Ethereum (ETH) – runs on the Ethereum blockchain

  • BNB – runs on BNB Chain

🔸 What is a Token?

Tokens are cryptocurrencies that are created and accounted for in existing DLT systems. They often represent:

  • 💰 Units of value (e.g. stablecoins like USDT)

  • 🎟️ Usage rights (e.g. governance tokens)

  • 🧾 Ownership of assets (e.g. NFTs or real-world asset tokens)

Tokens usually run on top of another blockchain, most commonly Ethereum.

✅ Examples:

  • USDT, LINK, UNI – run on Ethereum

  • CAKE – runs on BNB Chain

🧠 Key takeaway:

  • A coin is the “native currency” of a blockchain.

  • A token is a “passenger” that rides on another blockchain.



References:

  • https://academy.binance.com/en/articles/crypto-tokens-vs-coins

  • https://ethereum.org/en/developers/docs/tokens/






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