PSA: The Difference Between Coins and Tokens

Bull runs always bring in many new investors. New investors, and plenty of experienced ones too, use tokens and coins interchangeably, but they are distinctively different entities with different value and use cases. Here is a quick breakdown for everyone:

Coin: The native currency of a blockchain. It forms the backbone of the chain and all assets built upon it because its value is integral to its whole ecosystem. Additionally, coins are used as gas fees for all transactions upon their chain. Examples in the top 20 include (not a fully inclusive list):

• Bitcoin
• Ethereum
• Dogecoin
• Solana
• Algo
• Avalanche

Token: An asset built upon an existing blockchain. Their value and initial liquidity is backed by their native chain. Tokens vary in uses such as memes, stores of value, or to serve a function that improves the function of their native blockchains. Major types include ERC-20 (ethereum), BEP-20 (binance), and ASAs (algorand). Some examples of tokens in the top 20 include (not inclusive):

• Tether (on multiple chains)
• Shiba Inu (ERC-20)
• Uniswap (ERC-20)

I hope this was educational for someone. TLDR - coins and tokens are not the same thing.