Tokens Vs Coins
Blockchain 101
What Are The Differences Between Tokens And Coins?
“Coins” and “Token” are common terms in the crypto community. They are used frequently and unfortunately, often used interchangeably.
These two terms actually refer to different things and it’s important to understand that difference. Below is a snapshot of what each means:
Coins
Coins are cryptocurrencies that were invented in order to be an alternative to the traditional form of money. Also known as “digital money”, these digital assets have quickly gained popularity over the past years.
Unlike tokens, they exist on their own blockchain. The first and most popular crypto-coin is bitcoin.
Alt-Coins
Alt-coins are cryptocurrencies that represent a currency of their own and run on a separate blockchain.
Bitcoin was the first cryptocurrency and every other cryptocurrency that followed is called an alternative coin = altcoin. Examples of Alt coins are Litecoin, ZCash, Ripple and more.
Tokens
Tokens are created on existing blockchains and enhanced via smart contracts. They represent a particular fungible and tradable asset or a utility that is often found on a blockchain.
Examples of tokens are ERC-20 tokens from the Ethereum network or NEP-5 tokens from NEO.
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