What is the difference between coin and token?

What Is the Difference Between Coin and Token?

A coin is the native currency of its own blockchain. Examples are Bitcoin (BTC) on the Bitcoin network and Ether (ETH) on Ethereum. A token is a digital asset that runs on top of another blockchain via smart contracts. USDT on Ethereum is a token; ETH is the coin of that chain.

Coins

Coins are used to pay for transactions and, in some cases, to secure the network (e.g. mining or staking). They are issued by the protocol itself, not by a separate contract. They have their own ledger, nodes, and rules.

Tokens

Tokens are created by smart contracts on an existing chain. They do not have a separate blockchain. Moving or using them often requires paying fees in the chain's native coin (e.g. gas in ETH). Thousands of tokens exist on Ethereum, Solana, and other chains.

Why It Matters

When you buy a coin, you are buying the base asset of a network. When you buy a token, you are buying a claim or right defined by a contract on that network. Both can go up or down in value. Scams and failed projects are more common among tokens, so research the project and use trusted platforms.