The difference between Coins and Tokens.

Crypto SNACK
2 min readApr 8, 2022


At some time throughout their cryptocurrency adventure, almost everyone has mixed up a token with a coin.

To clarify, they can both be Cryptocurrencies because either a Coin or a Token require solving cryptographic tasks to validate de information.

But, how are they different?

Coins operate on its own blockchain, acts as money and can be mined. And Tokens, rely on smart contracts.

Another difference is that when a token is spent, it moves from one place to another, coins do not, only account balances change.

Other distinction we can make between tokens and coins is the value they represent. Tokens can represent assets or deeds, but coins are essentially digital copies of money.

In other words, a token symbolizes what you own, but a coin represents what you have the potential to acquire.For example, a company’s share.

To summarize:

The difference between a token and a coin isn’t huge, but it can generate a lot of confusion if it’s misunderstood. Paying attention to what you’re buying is one simple way to figure out which one you should use. If it’s a product, you’ll almost always require coins. If it’s a service, utility tokens are frequently available.

If you were wondering…

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