Cryptocurrency Tokens and Coins, What’s the Difference?

Coin and Token

Understanding Crypto Tokens

A crypto token is a cryptocurrency digital asset whose blockchain network overlaps with another party’s blockchain. Most tokens are created on top of the Ethereum blockchain network. However, crypto tokens can be developed and transferred into new crypto coins. Tokens have a market value, but cannot be used as a means of payment or investment. However, tokens can be exchanged for assets, such as gold, property, and shares.

Token Use

Crypto tokens have several uses based on their types. Here are the four types of crypto tokens and their uses:

Utility Token

Utility tokens or utility tokens can be used as a means for users to obtain products or services on the platform. In addition, utility tokens can also be used as a means of payment or for crowdfunding purposes.

Security Token

This token is a token whose value is pegged to certain securities assets, such as stocks, gold, bonds, and others.

Non-Fungible Token

NFT is a token that represents assets in the form of digital works that are unique and each work has only one.


Stablecoins are crypto assets that offer price stability backed by reserve assets. This token is widely used because of its instant processing and security of crypto payment privacy with stable fiat money prices.

Token Example

Tether (USDT)
The USDT (United States Dollar Tether) token is a currency created as an intermediary between traditional currencies and cryptocurrencies. The value of this token is based on US Dollars, where 1 USDT is equivalent to 1 USD.

What Are Coins?

Coins are cryptocurrency assets that have their own blockchain network and are often called native blockchains because they are issued by blockchain protocol developers. Coin Serves to transfer assets or investments. This crypto asset was created with encryption techniques so that it can be stored for a long time.

Examples of Cryptocurrency Coins

Until now, there have been many cryptocurrency coins circulating in the market. Here are some examples:

Difference between Tokens and Coins

As stated earlier, tokens and coins are two different things that are often considered the same. But you shouldn’t think so, here is the difference between tokens and coins:



a Defi and Metafinance Blockchain System Integrator

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store