Is a coin the same as a token?

While many people use the phrases ‘crypto coin’, ‘crypto token’, and ‘cryptocurrency’ interchangeably, they’re not the same thing. Though coins and tokens use distributed ledger technology (also known as blockchain technology), there are some significant differences between a coin and a token.

What are crypto coins?

Crypto coins are native to their own blockchain. The Bitcoin blockchain coin is BTC. The Ethereum blockchain has ETH. And the Litecoin blockchain uses LTC. These crypto coins are primarily designed to store value and work as a medium of exchange, similar to traditional currencies. This is why crypto coins are also referred to as cryptocurrencies.

Are utility tokens the same as crypto coins?

Cryptocurrency tokens, or crypto tokens, have become an integral part of the crypto space. They’re cryptocurrencies, but they’re not the same as crypto coins. Instead, crypto tokens have taken on a whole new meaning through utility tokens and NFTs (non-fungible tokens) that have sold for millions of dollars. But what are utility tokens?

Are all crypto tokens altcoins?

Some tokens are also considered altcoins, even though there’s a technical difference. One of the largest crypto exchanges considers all tokens to be altcoins, yet refers to all crypto assets as (technically) tokens. Is your head spinning? That’s OK; even crypto pros don’t always get it right.