Coin vs token

In crypto, a "coin" is usually the native asset of its own blockchain, such as BTC on Bitcoin, ETH on Ethereum or SOL on Solana, and is used to pay transaction fees and secure the network. A "token" is an asset created by a smart contract on an existing blockchain. Examples include USDC and UNI, both issued as tokens on Ethereum and other chains.

Token standards make tokens interchangeable across wallets and apps. On Ethereum, ERC-20 is the standard for fungible tokens and ERC-721 for NFTs. The same token can exist on several chains, sometimes through bridges, so always check the network before sending.

In everyday use, people often say "coin" and "token" interchangeably. Creating a token costs very little, which is why thousands of new ones appear every day, many of them worthless.