Crypto FAQ: What is the difference between a cryptocurrency coin and a token?
In the context of cryptocurrencies, the term coin generally refers to any cryptocurrency that has its own separate, standalone blockchain, and which can be used for as a medium-of-exchange for buying and selling things in its own right. In contrast, the term digital token (or simply token) refers to any cryptocurrency that is built on top of an existing blockchain ecosystem (infrastructure).
For example, the Ethereum project's Ether (ETH) is a cryptocurrency Coin that is buit upon the Ethereum blockchain ecosystem. In contrast, EOS, TRX (Tron), ZRX (0x), OMG (OmiseGo), ZIL (Zilliqa), REP (Augur), et al. are ERC20 Digital Tokens that are built upon the existing Ethereum blockchain ecosystem.
As a general rule, you can buy a crytocurrency Token with a Coin, but not vice versa. A cryptocurrency Coin operates independently, whereas a Token has a specific use in the cryptocurrency project's ecosystem.
DISCLAIMERS
NO INVESTMENT ADVICE
The information provided on this website does not constitute investment advice, financial advice, trading advice, legal advice, or any other sort of advice, and you should not treat any of the website's content as such. CRYPTOCURRENCY WORKS does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor or legal advisor before making any investment decisions.
ACCURACY OF INFORMATION
CRYPTOCURRENCY WORKS will strive to ensure the accuracy of information provided on this website, although it will not hold any responsibility for any missing or erroneous information. CRYPTOCURRENCY WORKS provides all information as is. You understand that you are using any and all information available here at your own risk.
CRYPTOCURRENCY WORKS and Cryptocurrencyworks.com are trademarks of PivotPoint Technology Corporation. All other product and service names mentioned are the trademarks of their respective companies.