January 4, 2022

Crypto Basics: What’s the Difference Between ‘Tokens’ & ‘Coins’?

 Notice that in crypto articles, ‘coins’ and ‘tokens’ are mentioned many times.


Although both carry the same meaning, in fact these two words carry different features and functions.


COIN


Launched on its native blockchain, or rather have a blockchain

For example:

Bitcoin (BTC) circulating in the Bitcoin network.

Ehtereum (ETH) in the Ethereum network.

TOKEN



Launched or boarded on the blockchain

For example:

Tether (USDT) which is on another network like Ethereum.

Shiba Inu (SHIB) which is in Ethereum.

Roughly speaking, these two coins and tokens do not have a clear distinction as they play the same role and function, as do their purchases and sales.


Only if you are looking for differences for coins and tokens, can be seen when a developer or crypto exchange platform makes specific improvements to a crypto project or wants to make changes to a smart contract or blockchain.


So, it doesn’t matter if the crypto asset you buy is either a coin or a token because the two remain the same.


In conclusion, do you clearly understand the difference between the terms 'token' and 'coin'?


Anyway, before making a crypto investment make sure you DYOR!