Lesson 7: Crypto Coins vs Tokens
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← Back to LessonsWhat’s the Difference Between a Coin and a Token?
Many people think all cryptocurrencies are the same. But there's a key difference between coins and tokens. Let’s break it down.
1. Crypto Coins
Coins are native to their own blockchain. For example:
- Bitcoin (BTC) → Bitcoin Blockchain
- Ethereum (ETH) → Ethereum Blockchain
- BNB → BNB Smart Chain
Coins are usually used for payments, staking, or securing the network.
2. Crypto Tokens
Tokens are built on existing blockchains using smart contracts. For example:
- $FOFI → BEP-20 token on BNB Smart Chain
- USDT → ERC-20 token on Ethereum
- Shiba Inu → ERC-20 token on Ethereum
Tokens can be used for anything: voting, rewards, access to apps, or NFTs.
3. Token Standards
These are templates developers use to create tokens:
- ERC-20: Token standard for Ethereum
- BEP-20: Token standard for BNB Smart Chain
- ERC-721: Used for NFTs on Ethereum
4. Summary
| Feature | Coin | Token |
|---|---|---|
| Own Blockchain | ✅ Yes | ❌ No |
| Created with Smart Contract | ❌ No | ✅ Yes |
| Example | BTC, ETH, BNB | $FOFI, USDT, SHIBA |
Next up: In Lesson 8, you’ll learn how to use a Blockchain Explorer to see transactions, tokens, contracts, and more.
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