In the crypto world, you often hear two similar terms — coin and token. Although both are digital assets, there is an important difference between them.



Coin — is a cryptocurrency that operates on its own blockchain. It is used as a means of payment, for storing value, or for paying transaction fees within its network.



Examples of coins: Bitcoin (BTC), Ethereum (ETH), Solana (SOL).



Token — is a crypto asset that is created based on an existing blockchain using smart contracts. Tokens do not have their own blockchain and usually serve a specific role within individual projects: from payments within the platform to voting rights or staking.



Examples of tokens: USDT, UNI, APE, STRK.



Main differences:




  • Blockchain:

    A coin has its own blockchain. A token operates on someone else's (for example, Ethereum or Solana).


  • Creation:

    Coins are created through the development of a blockchain from scratch. Tokens are created using a smart contract.


  • Purpose:

    Coins are full-fledged currencies in the ecosystem. Tokens are tools or services within a specific product.




Conclusion:


Every coin is a cryptocurrency, but not every token is a coin. A coin is the foundation, and a token is an 'overlay' that utilizes this foundation.





✅ Subscribe and like

#wct @WalletConnect $WCT