
Coins vs tokens: what’s the difference?
Find out more about the difference between a crypto coin and token.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
If you're new to the world of cryptocurrency, you'll no doubt have found that there's a whole lot of jargon and technical terminology to try and wrap your head around. Two terms that can be the source of much confusion are "coin" and "token." Both of these words can be used to describe units of blockchain value and there are plenty of similarities between the two.
However, there are some important differences as well, which we'll look at in this article.
What is a crypto coin?
In general terms, a cryptocurrency coin is just that – an encrypted digital currency meant to be used as a form of payment. A coin is a unit of value that operates on its own blockchain, independently of any other platform. It can be used to store value and pay for services, in much the same way that you would use physical money.
Bitcoin (BTC) is easily the best-known cryptocurrency coin around the world, but it’s far from the only coin available. In fact, there are thousands of crypto coins in existence. You may see many of these other coins referred to as altcoins, an abbreviation of alternative coins, simply because they offer an alternative to bitcoin.
Most altcoins are a fork of bitcoin and were developed using bitcoin’s open-source protocol. Examples include Litecoin (LTC) and Dogecoin (DOGE).
However, there’s also a long list of other altcoins that haven’t been derived from the Bitcoin protocol and have instead created their own blockchain and protocol. Some well-known examples include Ethereum (ETH), Ripple (XRP) and Cardano (ADA).
What is a crypto token?
Tokens are used to represent digital assets that are fungible and tradeable, including everything from commodities to voting rights. However, rather than operating on their own blockchain, tokens are hosted by another platform, such as Ethereum.
While tokens are also a medium of exchange, they offer functionality above and beyond that of coins. Tokens give their holders the ability to take part in some kind of activity – for example, if you want to bet on the outcome of future events through decentralised prediction market Augur, you’ll need to use REP, the Augur platform’s native cryptocurrency token. Tokens can also offer value to buyers, for example through buybacks.
Tokens are usually created and distributed to the general public through Initial Coin Offerings (ICOs), which are a form of crowdfunding. Some of the best-known crypto tokens include EOS (EOS), Tron (TRX) and OMG Network (OMG), with Ethereum being the most popular platform for token development.
However, there are also plenty of other platforms which tokens can be built upon, including Omni, NEO, Waves and Qtum.
Must read: Coins vs tokens
Coins are standalone cryptocurrencies based on their own blockchain. Tokens are built and hosted on existing blockchains.
Explore more coins and tokens
Find all coin and token profiles, news and history to get you started with crypto trading and investing.



Learn how and where to buy crypto coins and tokens
Learn how and where to buy cryptocurrency by following our simple step-by-step guides and comparing 30+ crypto exchanges.



Get an expert outlook on the crypto market
Get an expert outlook with our coin and token price predictions, forecasts and analysis reports.



Read more on this topic
-
How to buy Green Satoshi Token (GST) in Australia
This guide provides step-by-step instructions on how to buy Green Satoshi Token, lists some exchanges where you can get it and provides daily price data on (GST).
-
How to buy STEPN (GMT) in Australia
This guide provides step-by-step instructions on how to buy STEPN, lists some exchanges where you can get it and provides daily price data on (GMT).
-
How to buy The Sandbox (SAND) in Australia
This guide provides step-by-step instructions on how to buy The Sandbox, lists some exchanges where you can get it and provides daily price data on (SAND).
-
Shiba Inu (SHIB) price prediction
Read our expert analysis on Shiba Inu and how the token will perform in the future.
-
Shiba Inu (SHIB) price, chart, coin profile and news
This guide provides step-by-step instructions on how to buy Shiba Inu, lists some exchanges where you can get it and provides daily price data on SHIB.
-
Sell Litecoin in 4 steps
Finding the right way to sell Litecoin is just as important as finding the right option to buy it. In this guide, we break down the options available and the factors to consider.
-
TrueAUD (TAUD) price prediction
Read our expert analysis on TrueAUD and how the token will perform in the future.
-
ApeCoin (APE) price prediction
Read our expert analysis on ApeCoin and how the token will perform in the future.
-
ADAPad (ADAPAD) price prediction
Read our expert analysis on ADAPad and how the token will perform in the future.
-
Paribus (PBX) price prediction
Read our expert analysis on Paribus and how the token will perform in the future.
Get into cryptocurrency

Best crypto exchanges
Our top picks for where to buy, sell and trade crypto.

Best cryptocurrency wallets
Find out which digital wallet is best for you.

How to buy Bitcoin
Follow our 4 simple steps to get started.

Coin buying guides
Browse our A-Z of crypto buying guides.
Ask an Expert