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Author: Admin | 2025-04-28
Crypto Coin Vs TokenSo what standards do bitcoin (BTC) and ether (ETH) use? None! Bitcoin and ether, like Solana (SOL) and Cardano (ADA), are coins, not tokens. Coins and tokens are fundamentally different types of digital assets. Tokens power decentralized applications (dApps); coins power blockchains. Cryptocurrency coins are primarily intended for transactions, whereas tokens possess specific use cases and features within specialized apps. For instance, a platform running atop an existing blockchain may create tokens for purposes like covering transaction fees, facilitating trade on a marketplace, providing discounts/rewards, or engaging in decision-making inside a dApp.Three popular categories of crypto tokens include:Utility tokensSecurity tokensGovernance tokensStablecoins are also examples of tokens because they run on top of an existing blockchain. The USDC token, for example, is an ERC-20 token, which means this token runs atop the Ethereum network.Generally speaking, coins are used for staking, which helps to secure blockchain networks. There are many more tokens than coins available to trade. However, you’ll need a self-custody wallet to access most of them as centralized exchanges typically only offer a handful of tokens. 🍒 Crypto Coin vs Token: What’s The Difference?
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