How tokens and coins differ through 4 angles


    When we first learn about crypto, we often hear about coins and tokens. So how are tokens and coins different?

    There are things that you don't need to learn. Just do a lot and test it out.

    But what we learn, we keep learning, right? In the cryptocurrency market, knowledge is extremely important.

    And one of the things that you need to know is how tokens and coins are different.

    What is Coin?

    If you often watch historical movies, you will know the coin right?

    It has a round shape, usually has a hole in the middle, and is used as the official means of payment.

    In the crypto market, coins have no shape or color. That is, it does not exist in any physical form.

    Token và coin khác nhau như thế nào
    How are tokens and coins different?

    Coin is a digital currency created through encryption and store of value techniques. Coins can be sent, received, or mined and have limits.

    In terms of functionality, the coin plays no other role than “money”.

    Some popular coins can be mentioned as: Bitcoin, Ether, or Litecoin…

    Coins have 2 types, Bitcoin and altcoin.

    Altcoin is an abbreviation of the word alternative coin which means alternative currency. Thus altcoins refer to all coins other than Bitcoin.

    What are tokens?

    Along with coins, tokens are also called crypto (cryptocurrency, cryptocurrency).

    Tokens are digital assets used within a certain ecosystem.

    Therefore, tokens are often issued during ICOs.

    ICO = Initial Coin Offering means the initial issuance of cryptocurrency to the public to raise capital.

    To better understand the nature of coin and token we will go into analyzing the difference between them.

    How are tokens and coins different?

    There are quite a few differences between coins and tokens. I would like to go into some of the basic points as follows:


    Coin operates independently on its own blockchain.

    For example, BTC runs on Bitcoin or ETH runs on Ethereum….Meanwhile, the token only works on another existing blockchain.

    Ethereum was the first platform to simplify the token generation process hence the majority of tokens that run on Ethereum are called ERC-20 tokens.

    In addition to ERC-20, there are also ERC-223, ERC-721…but ERC-20 is still the most popular.

    So if you have an Ethereum wallet, all tokens running on the Ethereum blockchain such as ERC-20 tokens can be deposited there.

    This is similar to when you are a student renting a house, you use the address of the landlord to receive correspondence.


    As I said above, coin has no other function than "money". You can optionally store or transact with the coins you have.

    Tokens can also be used as a means of payment. In addition, it has many other features.

    People divide tokens into 2 types, security tokens (security tokens) and utility tokens (utility token).

    For example, Binance's BNB is used to reduce transaction costs. CVC is used for identification when boarding a plane or checking in at a hotel.

    Or another token that is also quite familiar is Basic Attention Token (BAT) of the browser Brave.

    Brave will pay in BAT to users who view ads on their browser.

    In addition, they also share revenue with content creators such as blog owners or YouTube channels.

    In addition, there are some NTFs tokens such as baseball cards or very popular in-game items like CryptoKitties.


    When trading coins, the transaction cost (transaction fee) will be deducted directly from the coin.

    As for the token, you have to pay for the platform it works on.

    For example, when you transfer ERC-20 tokens running on Ethereum, you will have to pay fees in ETH.

    Wallet (Wallet)

    As I said above, the coin has its own blockchain, so there will be wallet private. As for the token, you can use the same wallet if the same platform.

    So I just went through what is coin, what is token, how is token and coin different.

    Good luck!


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