⚖️ Coin vs Token – What’s the Difference?
Coin vs Token – What’s the Difference?
People often use “coin” and “token” like they mean the same thing — but they’re not exactly the same. Let’s clear it up. 👇
🪙 What is a Coin?
A coin is a cryptocurrency that runs on its own blockchain.
💡 Examples:
Bitcoin (BTC) → runs on the Bitcoin blockchain
Ethereum (ETH) → runs on the Ethereum blockchain
Solana (SOL) → runs on the Solana blockchain
✅ Key Traits of Coins:
Native to a blockchain
Used to pay transaction fees (like gas)
Often have their own network rules
🎟️ What is a Token?
A token is built on top of an existing blockchain — like Ethereum or Solana — using smart contracts.
💡 Examples:
USDT (Tether) → an ERC-20 token on Ethereum
$MANI (Mandalyze AI) → an SPL token on Solana
UNI, SHIBA, APE → all tokens
✅ Key Traits of Tokens:
Use another blockchain’s infrastructure
Can have various uses: utility, governance, NFTs, etc.
Easier and faster to create than coins
🧠 Easy Analogy
Think of a coin like the main operating system (OS) And a token like an app built on that OS.
📊 Quick Comparison
Has its own blockchain
✅ Yes
❌ No (uses another blockchain)
Used to pay fees
✅ Yes
🔁 Sometimes
Easy to create
❌ No (needs full blockchain)
✅ Yes (via smart contracts)
Examples
BTC, ETH, SOL
USDT, $MANI, UNI, SHIBA
🧪 In Summary
Coins are the foundation layer (like Bitcoin, Ethereum). Tokens are the applications or assets built on top.
💡 If it’s running the chain — it’s a coin. If it’s running on the chain — it’s a token.
🧭 Next Lesson: What is a Wallet? (Custodial vs Non-Custodial)
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