Crypto Coin vs Token (Differences + Examples)

Summary

Many people use 'coin' and 'token' interchangeably but they are different things. Coins are native to their own blockchain (BTC, ETH, SOL). Tokens are built on top of an existing blockchain using smart contracts. This video clarifies the distinction with examples.

Key Concepts

Things To Remember

• A coin is the native currency of its own blockchain (e.g. ETH on Ethereum).
• A token is built on top of an existing blockchain using a smart contract.
• Most assets you see listed on exchanges are technically tokens.
• Both coins and tokens can be traded, staked, or used in DeFi.

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