Tokens and Coins: What are the differences?

I think you are confused about how we compare contrast the differnces and similarities between Token and Coin. I also have difficulties comparing them. Well, we will providing information in able for us to be enlightened to these things.

Difference between Coins and Tokens?

Coin

What is Coin?

A coin that is independent of any other blockchain or platform. The key feature of a coin is that of a currency, and the term may also be used to describe a cryptocurrency asset that is not a token. 

A coin, as a single unit of currency, can be traded for an agreed upon value depending on current market conditions. Occasionally it can be exchanged for a different coin or token that belongs to another blockchain, either through a cryptocurrency exchange or through private transfers (like peer-to-peer and OTC trades). Decentralized exchanges and atomic swaps are also viable alternatives for coin and token trading.

• A Coin is a digital currency similar to the physical currency

• Coin operates on its own blockchain with its own protocol

• Coins are purely used as a source of payments

• Coin is a basic unit of cryptocurrency. an independent digital currency that operates without any dependence on a platform.

• The use of coins is mostly in the form Of digital currencies.

• Example: Bitcoin. Litecoin. Ripple, ETH, NEO. etc

Token

What is Token?

And so if a coin (otherwise known as a cryptocurrency or native token), has its own blockchain, a token is the opposite: it runs on another blockchain.

The best known example of this is the ERC20 token, which is any token that uses the Ethereum blockchain.

Sub Info

• A Token is a digital asset issued on a particular project

• Token does not operate on their own blockchain

• Tokens are used for payments and signing digital agreements.

• For e.g. BON and DAO token

• Tokens require a platform to be built and operate,that is an existing blockchain like NZO or Ethereum.

• The use of tokens is divers as they work for a different purpose for dApps and different for DAOS.

• Example: Security tokens utility tokens, equitv tokens. Musicoin. BNB. etc.