The difference between a coin and a token in cryptocurrency is mainly about their blockchain and how

The difference between a coin and a token in cryptocurrency is mainly about their blockchain and how they are used.


---

🪙 1. Coin

A coin is a cryptocurrency that has its own independent blockchain.

Examples:

Bitcoin – runs on the Bitcoin blockchain

Ethereum – runs on the Ethereum blockchain

BNB – runs on BNB Chain


Main Purpose:

Used as digital money

Pay transaction fees

Store of value

Medium of exchange


Think of coins like the main currency of their own network.


---

🪙 2. Token

A token is a cryptocurrency that is built on an existing blockchain.
It does NOT have its own blockchain.

Most tokens are built on the Ethereum network.

Examples:

Tether – built on Ethereum & other chains

Shiba Inu – built on Ethereum

Uniswap – built on Ethereum


Main Purpose:

Utility (use inside an app)

Governance (voting power)

Stablecoins

Gaming or DeFi projects


Think of tokens like apps running on a blockchain system.


---

🔥 Simple Comparison

Feature Coin Token

Has its own blockchain? ✅ Yes ❌ No
Example Bitcoin USDT
Main Use Digital money Utility, DeFi, governance
Created easily? Harder Easier (using smart contracts)



---

💡 Quick Example

Ethereum blockchain = like Android operating system

Ether (ETH) = main currency of the system (Coin)

USDT on Ethereum = app running on Android (Token)



---

Since you're into crypto trading, this difference matters because:

Coins usually move with market sentiment.

Tokens can pump based on project news or utility demand.


If you want, I can also explain utility token vs security token vs governance token next.