When diving into the world of cryptocurrencies, you'll quickly encounter the distinction between coins and tokens. They may look similar in your wallet – but technically, there's a clear difference.
What is a Coin?
A coin is a digital currency that runs on its own blockchain.
Popular examples:
Bitcoin (BTC), Ethereum (ETH), Polygon (POL), BNB
Coins are the native currency of their respective networks. They are used to:
- Send transactions
- Pay network fees (gas)
- Secure the network through mining or staking
What is a Token?
A token is a digital asset that is built on top of an existing blockchain, such as Ethereum or Polygon. Tokens use the infrastructure of the underlying blockchain, but serve their own purposes. Examples include:
- Stablecoins like USDC, EURC
- Governance tokens like MKR, LRC
- Utility tokens like FLTK, 2D3T
You can think of a token like an app running inside an operating system – it depends on the platform but adds its own unique functionality.
Key differences at a glance
Feature | Coin | Token |
|---|---|---|
Own blockchain | Yes (e.g. BTC, ETH) | No – built on another chain like Ethereum |
Main purpose | Payments, fees, staking | Stability, governance, digital features |
Examples | BTC, ETH, POL, BNB, HBAR | USDC, EURC, MKR, FLTK, LINK, LRC |
Technical structure | Own blockchain protocol | Smart contract on existing blockchain |
Why does it matter?
- Coins are the infrastructure of a blockchain
- Tokens are applications or functions built on top of that infrastructure
Understanding the difference helps you evaluate crypto projects more effectively and use them more meaningfully.
Coins & Tokens on Floin
Floin supports both:
- Coins like Bitcoin or Ethereum
- Tokens like FLTK or USDC
Now you know exactly what the difference is – and why it matters.
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