Executive Summary: Coin vs Token: What Is the Difference?
In this article, I explain the difference between coins like Bitcoin and Ethereum that are independent cryptocurrencies, and tokens like Tether and Uniswap that depend on an existing blockchain.
Summary: Coins are independent cryptocurrencies like Bitcoin and Ethereum that are mined and decentralized, while tokens depend on an existing blockchain for operations and represent utility, assets, or rights.
What are coins:
- Independent cryptocurrencies on their own blockchain
- Mined through computers validating transactions
- Decentralized, secure, scarce
What are tokens:
- Sit on top of an existing blockchain
- Represent utility, assets, rights, etc.
- Usually pre-mined and distributed via smart contracts
Difference between coins and tokens:
- Coins are money, tokens are currency
- Coins have their own blockchain, tokens use another's
- Coins are mined, tokens are pre-mined
- Coins are for transactions, tokens for specific uses
Examples of popular coins:
- Bitcoin, Ethereum, Binance Coin, Dogecoin
Examples of popular tokens:
- Tether, Uniswap, Arbitrum, Chainlink
Full article:
Coin vs Token: What Is the Difference? | CoinMarketCap
Coins versus tokens — just two sides of the same crypto coins? Not quite — learn the difference between these two terms.
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