Coin vs Tokens

[bitbitP]

 All coins and tokens are considered cryptocurrencies, irrespective of their function as currency or medium of exchange. Therefore, you often read of cryptocurrency coins or cryptocurrency tokens. Often, coins are also referred to as altcoins (alternative cryptocurrency coins) to name digital currencies that are an alternative to Bitcoin. So, what's the difference?

Function vs. Structure

The purpose of a coin is to act like money and become a means of payment while storing value over time. Most known and popular coins take the form of Bitcoin-derived blockchain tokens like Bitcoin, Litecoin, and Monero. A coin, Bitcoin, aims to be a cash replacement, so the function is solely to denominate value in an exchange of goods or services. Their value in fiat money proves their likelihood to become popular as they can become a liquid form of money eventually.

Tokens’ purpose is far more focused. They are created on existing blockchains (for example Ethereum) to activate features of the application they were designed for. Blockchain tokens have value, yet they are not seen as actual money the same way coins are considered. Tokens can be considered a type of instrument that creates the environment for a better circulation of value between businesses and their customers – you fund a smart contract with the underlying coin and investors receive tokens from the company running the offering. This way, customers are incentivized to interact with a business through a crowdfunding and with no large financial commitments as often acquiring one token only is enough to be included in the project.


While there is a blurry line between what coins and tokens are defined as there are certain aspects on which the crypto community agrees. Coins are considered methods of payment while tokens give access to a product and unfold many other functions of a specific project. Coins are used for purchasing and selling goods or tokens as the first operates independently and the latter has value mostly within a project’s ecosystem. Often tokens are given to crowdfunding supporters to spend on their favorite services and products, and this is a great opportunity for businesses to deliver a significant amount of value for their project’s idea.

In the end, a coin like Bitcoin has been trying to break into the payment sector based on its claims of swift transactions, while tokens have already taken over the market and the tokenization model is delivering great results. Read more : https://pumapay.io/coin-vs-token-whats-the-difference/

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[bitcoindiary]

I was always confused about token and coins and used to think that both are same. This post just opened my eyes. This was such a clear discussion in both and explained that coin can act as money where tokens cannot.

[BitCoinGuy10]

Actually both are related with each other but coin is a system or medium where we can do payments based on this token is tradable asset which is related with blockchain.

[BlackandRed654]

The coin or cryptocurrency is the unit of payment and is used for transactions. Tokens, on the other hand, are built on some blockchain based dapp platform for promoting their project. The tokens help to give access to the product and to accomplish other functions of the project.

[jamesbondbd007]

Coins are here to be a form or a medium of payment. Bitcoin is the most popular and the best coin in the market. Token is more vast. You can call them as a type of virtual token which is deemed as a special one that resides in their own blockchains.

[Flamebellow]

I can tell it in a few words : Coins are based on their own blockchain , while tokens are built on other existing eco-system . Process of token creation is much easier , because developer can do it by utilizing existing platform with available smart-contracts .

[sidneycrypto6]

Coins are also a store of value but it is intangible in nature such as Bitcoin. Tokens on the other hand are created on a blockchain technology. They do have value but they are not seemed as actual fiat. Between tokens and coins, coins would be the best one.

[markluis]

Coin and tokens both are part of cryptocurrency but there have some difference between and you able lift up the concept here nicely.In a world Well writing.

[ynclksnr321]

I am invested in investing in token instead of coin. Because if you can join a solid project, it can really make you rich when you enter the stock market. But coins already have already made their pricing.

[blackandwhite89]

In the battle between coins vs tokens, the majority will go for coins. Coins are a form of digital intangible currency. And tokens are created on the blockchain technology.

[jasonkirbi]

Tokens and coins are two different things in crypto world. Here it is explain very briefly. It will be very helpful for those who have some confusion both of it. I hope it will help for the newbie also.

[bituperio]

I was always confused about token and coins and used to think that both are same. This post just opened my eyes. This was such a clear discussion in both and explained that coin can act as money where tokens cannot.

Coins are in fact not coins, they are simply units that form the original chains on which you can build tokens. "Coins" is not a very good word to describe the original chain units, tend to confuse people.

[nobetci]

All coins and tokens are considered cryptocurrencies, irrespective of their function as currency or medium of exchange. Therefore, you often read of cryptocurrency coins or cryptocurrency tokens. Often, coins are also referred to as altcoins (alternative cryptocurrency coins) to name digital currencies that are an alternative to Bitcoin. So, what's the difference?

Function vs. Structure

The purpose of a coin is to act like money and become a means of payment while storing value over time. Most known and popular coins take the form of Bitcoin-derived blockchain tokens like Bitcoin, Litecoin, and Monero. A coin, Bitcoin, aims to be a cash replacement, so the function is solely to denominate value in an exchange of goods or services. Their value in fiat money proves their likelihood to become popular as they can become a liquid form of money eventually.

Tokens’ purpose is far more focused. They are created on existing blockchains (for example Ethereum) to activate features of the application they were designed for. Blockchain tokens have value, yet they are not seen as actual money the same way coins are considered. Tokens can be considered a type of instrument that creates the environment for a better circulation of value between businesses and their customers – you fund a smart contract with the underlying coin and investors receive tokens from the company running the offering. This way, customers are incentivized to interact with a business through a crowdfunding and with no large financial commitments as often acquiring one token only is enough to be included in the project.


While there is a blurry line between what coins and tokens are defined as there are certain aspects on which the crypto community agrees. Coins are considered methods of payment while tokens give access to a product and unfold many other functions of a specific project. Coins are used for purchasing and selling goods or tokens as the first operates independently and the latter has value mostly within a project’s ecosystem. Often tokens are given to crowdfunding supporters to spend on their favorite services and products, and this is a great opportunity for businesses to deliver a significant amount of value for their project’s idea.

In the end, a coin like Bitcoin has been trying to break into the payment sector based on its claims of swift transactions, while tokens have already taken over the market and the tokenization model is delivering great results. Read more : https://pumapay.io/coin-vs-token-whats-the-difference/

Firstly, I thank you for this informative writing.

I prefer coins generally, instead of tokens. Of course I have some tokens, but the prices of the coins have already low prices, and if you are a holder, I believe that you can have good profit by choosing profitable coins.

[cryptocamacho4785]

Thank you for posting this, I have seen a lot of new members in the forum who have been struggling with the terms and was mistakenly calling coins 'token' or vice versa. The article has some really in depth discussion on the features that makes coins and tokens apart from each other.

[EveningRock]

Very good read indeed but to be honest, details should not be for the newbies who just want to know the main difference between coin and tokens. For them, a coin operates on its own blockchain whereas tokens are hosted by another platform and collected from the platform's blockchain.

[Seunbabatunde]

Its simply means a coin operates on its own blockchain whereas tokens are hosted by another platform and collected from the platform's blockchain.

[moynul2050]

Tokens will be easily destroyed because they are influenced by a small community, they only hold it for a few months and after that throw it away.
coins are more stable and they have a larger community because they have their own blockchain.

[Yaddady]

There's clearly a difference between coins and tokens. This is even evident in the ease of conversion for fiat. It's easy to convert coins to fiat values, but you have to convert tokens to coins first before trading them for fiat. This brings me to the question: where do you place ETH?

[dollarneed]

The difference between coin and token is very clear as op described above, somehow it's quite confusing that people called coin as a token or token as a coin, You can find them even in the crypto related site which is bad,coin has their own platform and operates independently while token is not, it requires another platform such as ethereum to exist, people have to know the difference between these two things.

[croptodic]

thanks for sharing such an informative post. hopefully this airticle will be helpful for the newcomers who are new in crypto market.