Crypto Coins vs. Crypto Tokens

The easy way to tell the difference between coins and tokens

Image Credit: Crypto Unfiltered YouTube channel

If you’re confused like I was, you might’ve asked this question before:

What is the difference between cryptocurrency coins and cryptocurrency tokens?

Why are some cryptocurrencies called coins, while others are called tokens?

The short TDLR answer I discovered is this:

• Coins are any cryptocurrency that lives on its own independent blockchain
• Tokens are cryptocurrencies that do not have their own blockchain but use another blockchain to function

For example, Bitcoin, Ether, Litecoin and XRP are coins.

Tokens like OmiseGo or 0x are ERC-20 tokens that use Ethereum’s blockchain.

But let’s dig a little deeper into each one to get a full grasp on the difference between coins and tokens.

1. Crypto Coins

Coins are cryptocurrencies that have their own blockchain and protocol.

For example, Bitcoin has its own set of rules called Proof-of-Work, which make up the entire backbone of Bitcoin’s global network.