What is a Coin vs. Token (Difference Explained)?. A coin is the native asset of a blockchain (e.g., BTC, ETH). A token is issued by a smart contract on an existing chain (e.g., ERC‑20 tokens on Ethereum).
How it works
Coins pay for base‑layer fees and secure the network. Tokens inherit the security of their host chain and rely on contract logic for supply and transfers.
Why it matters
Knowing the difference clarifies fee payments, risk models, and how upgrades or bugs are handled.
Common pitfalls
- Expecting gas fees in the token being sent—base fees are usually paid in the chain’s coin
- Mistaking token governance rights for legal ownership
- Sending tokens to an exchange without deposit support
Quick example
Transferring an ERC‑20 token still requires ETH for gas because Ethereum validators are paid in ETH.
See also
- Gas Fee
- Smart Contract
- EVM
TL;DR: What is a Coin vs. Token (Difference Explained)? defined in plain English with practical next steps.
Add comment
You must be logged in to post a comment.