What's the difference between a TOKEN and a COIN?

Education Questions
1

Please tell us the difference between a TOKEN and a COIN. Some folks don’t really know this.

10 Likes
2

Let me explain in lay man language…now ethereum is a coin because eth is the native coin on the ethereum blockchain…any other coin on ethereum block chain is called a token…same with other block chain BNB is the coin on binance block chain while other coins on bsc are called token…

6 Likes
3

A coin has its own blockchain , a token is created on an existing blockchain.

2 Likes
4

Thanks for the clarification guys. I really appreciate you all.

1 Like
5

@sindy you explained it in such a way that a 5 years old child would understand.

2 Likes
6

good jod @sindy :saluting_face:

2 Likes
7

Perfect explanation :ok_hand:

3 Likes
8

@emizoimanuel this is better explained

1 Like
9

@sindy makes sense

1 Like
10

this is a great answer and I really appreciate your contribution

1 Like
11

The main difference between a coin and a token is that tokens rely on a blockhain ( for example UNI for uniswap and SUSHI for sushiswap ) THEY ALL DEPEND ON THE ETHEREUM BLOCKCHAIN . bUT A COIN IS THE CURRENECY OF THE BLOCKCHAIN ( FOR EXAMPLE ETHEREUM)

3 Likes
12

A coin is the base currency for a blockchain. Now, projects builds on that blockchain and creates their own currency and that’s called Token.

Gas fees are paid in Coins not Tokens.
E.g, Ether (ETH) is a coin, Several tokes are in the Ethereum network.

I hope you understand
:+1:t5: :+1:t5: :+1:t5:

1 Like
13

exaclty , your reply is spot on man

1 Like
14

Couldn’t have been explained better. You nailed it

2 Likes
15

Thank you very much buddy :slightly_smiling_face:

1 Like
16

A coin has its own Blockchain…while a token is built under an existing Blockchain…for example, Ethereum is a coin and is also a Blockchain on its own…all other currencies built under Ethereum Blockchain is a token.

17

i think coin is only for bitcoin, the mother and token is for alt coin (eth arb solana etc)

18

Thank you
#wagmi :heart:

19

Let me quickly explain a coin and a token in blockchain for a 10-year-old kid.

Imagine you have a piggy bank where you keep your allowance money. Every time you get some money, you add it to your piggy bank.

The piggy bank is like a blockchain because it keeps track of all the money you put in it, just like a blockchain keeps track of all the transactions that happen on it.

Now, imagine you have two different kinds of coins in your piggy bank. One kind is a regular coin like a quarter or a dime. The other kind is a special coin that you made yourself, and you wrote your name on it. This special coin is like a token.

In the blockchain world, a coin is a digital asset that has its own blockchain, just like the regular coin in your piggy bank has its own value and can be used to buy things. Examples of coins are Bitcoin, Ethereum, Litecoin etc.

A token, on the other hand, is like the special coin you made with your name on it. It’s a digital asset that runs on top of an existing blockchain, and it represents something else, like a digital certificate, a membership to a website, or even a ticket to a concert.

Examples of tokens are ERC-20 tokens on the Ethereum blockchain or BEP-20 tokens on the Binance Smart Chain like AXS, BNX etc.

So, in summary, a coin is like a regular coin that has its own value, while a token is like a special coin that represents something else and runs on top of an existing blockchain.

If you’ve learned anything from this explanation, quickly give a like, comment and also share to friends.

2 Likes