Learn the difference of a Coin and a Token

Though terms like “coin” and “token” might often be used interchangeably, there are some important differences between the two.

While a coin refers to a crypto asset running on its blockchain, a token runs on the blockchain of another crypto. Thus, a coin can also be referred to as a native token.

Bitcoin, Ethereum, Litecoin, and Monero are some well-known examples of coins. ERC20 and BEP2 standards operating on Ethereum and Binance blockchain, respectively, are good examples of tokens.

Generally, coins are generated by a process called mining, which involves several computers working to solve complex mathematical equations. Token, on the other hand, is offered through Initial Coin Offerings, where a company launches the token as a way to offer future rights to a product or service.