Crypto coin & crypto token: Know the difference

Investors often mistakenly refer to crypto coin as a crypto token or vice versa.


Crypto coins and tokens are alike at a fundamental level, but two different things.


Although all crypto coins are tokens, not all tokens are considered coins.

The difference

At the basic level, the key difference between the two is based on their utility.


For an investor to buy a product, coins are best; for a service, tokens can be used.


Crypto coins have their own blockchains, but tokens work on blockchains of coins.


Crypto coin was meant to be a money replica; other uses of token evolved over time.

Initial use

Crypto coins can be mined both on the proof of work and proof of stake systems


Transactions of crypto coins are handled by blockchain, tokens rely on smart contracts.


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