Tokens vs. Coins: Key Differences and How They Work

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[{"selector":"#anim-e0eeecbb-59ea-4253-a4f0-49ed78a120f6 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-25%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-7e46ef4d-6a4d-48c2-a3b4-afa1a05bc8e5","keyframes":{"transform":["translate3d(-100%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1fbe0e38-0b2b-49e6-85e7-53b717dcf161","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2c996968-3f24-4de1-94d8-1d696310d6bf","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Blockchain Coins run on their own blockchain (e.g., Bitcoin, Ethereum) Tokens are built on existing blockchains (e.g., ERC-20 on Ethereum).

[{"selector":"#anim-21af875e-124e-4957-b530-7d1c03a4fb95 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(1.3176923429502558%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-07813b03-53f4-4604-bcb7-26f4a8e7a988","keyframes":{"transform":["translate3d(-100%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5be6ac11-2e12-4f6e-88d3-cc5a6dc6c665","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c6ae6019-6b6a-46be-903a-76d1f7dc0ed2","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Purpose Coins act as digital currencies for transactions and value storage. Tokens represent assets, grant access, or serve governance roles.

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[{"selector":"#anim-0cf8435d-7058-4eaa-8e38-8097db665f98 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(4.144239247630884%, 4.4241526857533575%) scale(1.3289473684210527)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-3a129960-f277-40f3-a6ee-a42854df44cb","keyframes":{"transform":["translate3d(-100%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-92335574-eaea-434e-b3df-7a495a99f268","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bb624d60-aae4-4807-8e95-e4c95c7fc2de","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Use Cases Coins are used for payments and store of value. Tokens power dApps, governance, and asset representation.

[{"selector":"#anim-cebbb770-25c2-4ee4-b55d-738d24b4876c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(8.958477508021815%, 8.75800995880172%) scale(1.3289473684210527)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-ba3ef82e-f04b-4eeb-9d82-12b3a480ab49","keyframes":{"transform":["translate3d(-100%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-92168663-febc-4414-a892-a9364d19c878","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c22026c0-2c58-4320-82fe-66c6e83a8a1a","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Interoperability Coins work only on their native blockchain. Tokens can interact across platforms within the same blockchain.

[{"selector":"#anim-046a829c-0f1d-45a7-b5e5-8a2ee365dfaa [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-9.70209479760642%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-47364e0e-56b1-411d-9a1b-2125f7444440","keyframes":{"transform":["translate3d(-100%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b72e96b1-70df-4215-adc2-c6f5053cf22d","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5461955c-4de4-407b-8c5a-fd55a3ca5f32","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Conclusion Coins function as standalone digital currencies, tokens serve specific roles on existing blockchains. Knowing their differences helps in making informed investment & usage decisions in the crypto space. Learn more