--- title: "Crypto coins vs Tokens: What’s The Difference" description: "As a newbie in the cryptocurrency space, it’s normal for you to get confused of the difference between coins and tokens. In most cases, you’ll see these two ter" author: "chals farade" published: 2021-06-10 updated: 2021-06-10 canonical: https://yourviews.mindstick.com/view/82555/crypto-coins-vs-tokens-what-s-the-difference category: "fantasy sports" tags: ["cryptocurrency", "fantasy sports", "#bitcoin", "fantasy game", "fantasy football game"] reading_time: 3 minutes --- # Crypto coins vs Tokens: What’s The Difference As a newbie in the [cryptocurrency](https://www.mindstick.com/articles/327746/effective-ways-to-earn-in-cryptocurrency) space, it’s normal for you to get confused of the [difference](https://www.mindstick.com/articles/157114/good-news-or-bad-news-and-the-difference-is) between coins and tokens. In most cases, you’ll see these [two terms](https://answers.mindstick.com/qa/34868/how-many-u-s-presidents-have-served-more-than-two-terms) often used interchangeably in cryptocurrency platforms and [blogs](https://www.mindstick.com/developersection/blog). At any point, they may seem alike and similar, but they aren’t the same. The first thing you should know is that both crypto coins and tokens are [digital assets](https://www.mindstick.com/blog/299951/how-to-better-protect-digital-assets) and are extensively different concepts in the crypto ecosystem. This article explains the difference between crypto coins and tokens. \ ### What is a Crypto Coin? A coin in cryptocurrency is any digital asset that has a single [blockchain](https://www.mindstick.com/articles/13044/blockchain-games-and-their-potential-influence-on-gaming) system. Primarily, a coin originates and plays by the rules of the blockchain. For this reason, many people refer to a coin as the currency of that blockchain. Asides from being a currency, a crypto coin is a means of exchange [as well as](https://www.mindstick.com/interview/2481/can-you-write-a-java-class-that-could-be-used-both-as-an-applet-as-well-as-an-application) a means of saving passively. Great examples of crypto coins include the most popular Bitcoin, Ripple, Ethereum, among many others. Some features common to most crypto coins include; \ They are primarily decentralized entities They depend on a blockchain They follow the cryptocurrency graph system. You can use crypto coins in many ways. In most cases, you can even liken a coin to the regular money you have, as you can use it to pay for items. Some ways to use crypto coins include; Money Transfer eCommerce Savings Token building (Ethereum) Making network decisions (Dash) \ ### What is a Crypto Token? The primary difference between crypto coins and tokens is the blockchain difference. Tokens do not have their single blockchain; they always depend on already existing blockchains. Since they’re built on an existing blockchain, it doesn’t mean that it’s easy. The process of creating a crypto token is not a job for a newbie in any way. In most cases, these tokens are built by a blockchain network. The most popular token platform in the crypto world is Ethereum. Ethereum blockchain supports tokens the most because of its affiliation with [smart contracts](https://www.mindstick.com/articles/279877/why-use-smart-contracts-to-build-blockchain-applications). There are many types of tokens on the Ethereum network, like NEO and DAI, but the original Ethereum tokens have a family name, ERC-20. An example of a token is Fanspel, which is used to power the first blockchain-based fantasy platform of the same name. If you create a token on a blockchain, you’ll require other miners on that blockchain to endorse the existence of the token. Some features of crypto tokens include; \ They are guided by a set of programs, features, and rules provided by smart contracts. They are open to [almost everyone](https://answers.mindstick.com/qa/36851/if-almost-everyone-can-learn-programming-for-free-why-is-the-salary-relatively-very-high) but can’t be controlled by anyone. The tenets of most tokens are visible to everyone. Like crypto coins, tokens also have their uses. Some of the uses of a crypto token include; Value transfer [Investment](https://www.mindstick.com/articles/13065/an-investment-in-certification-software-gives-peace) proofs Product/service access \ ### Conclusion As a newbie in cryptocurrency, the most significant difference between crypto coins and tokens is the blockchain feature. A coin will have its blockchain, while a token will rely on that blockchain. However, in most cases, tokens perform some duties of cryptocurrencies and even some more. --- Original Source: https://yourviews.mindstick.com/view/82555/crypto-coins-vs-tokens-what-s-the-difference Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.