Coin
In crypto, a coin is the native asset of its own blockchain, such as BTC on Bitcoin or ETH on Ethereum. It is built into the protocol rather than created by a smart contract on someone else's chain.
What makes something a coin
A coin exists because the blockchain itself defines it. Its supply rules, issuance and transfers are part of the network's core software. Miners or validators are paid in it, and it is usually the asset you need to pay transaction fees on that chain.
Examples include bitcoin (BTC) on the Bitcoin network, ether (ETH) on Ethereum, SOL on Solana and ADA on Cardano. Each lives on its own layer 1 blockchain.
Coin versus token
A token, by contrast, is created on top of an existing blockchain, typically by a smart contract. USDC on Ethereum, for example, is a token: Ethereum knows nothing about it except that a contract keeps a list of balances. Moving a token still costs fees in the chain's native coin, which is why you need some ETH to send an Ethereum token.
So the difference is not about value, popularity or purpose; it is about where the asset lives and who defines its rules.
Why the words get mixed up
In everyday speech, people call almost any crypto asset a coin, including tokens. Meme coins, for instance, are often tokens on Ethereum or Solana. Price sites list coins and tokens side by side. The loose usage is common, but knowing the precise meaning helps when you need to understand which network an asset depends on.
Practical consequences
If you hold a coin, its security depends on its own blockchain. If you hold a token, it also depends on the smart contract and whoever controls it, which can sometimes freeze, mint or upgrade it. And when you send a token, you must use the right network, or the funds may be lost.
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Frequently asked questions
Is ether a coin or a token?
Ether is a coin, the native asset of Ethereum. Assets built on Ethereum with smart contracts, such as ERC-20 tokens, are tokens.
Why do I need ETH to send a token?
Transaction fees on Ethereum are paid in its native coin, ETH, no matter which token you move.
Can a token become a coin?
Yes, if its project launches its own blockchain and migrates holders to a native coin. Several projects started as Ethereum tokens and later did this.
Related terms
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