Token

The clearest way to see the difference: a coin (like Bitcoin or Ether) is native to its own blockchain and is used to pay that network's transaction fees. A token piggybacks on an existing blockchain — most commonly Ethereum — and is created through a smart contract (self-executing code stored on the blockchain). The host network's coin still pays the fees; the token just rides along. For background on how blockchains work, see blockchain explained.

Tokens can represent almost anything: shares in a decentralized project, voting rights in a protocol, in-game items, or claims on real-world assets. Because launching a token requires writing a smart contract rather than building an entire network, thousands of tokens have been created with minimal technical overhead. That low barrier is precisely why the token category spans everything from serious infrastructure projects to short-lived speculative experiments. Browse the live universe at /crypto.

A practical example: suppose a decentralized lending protocol issues a governance token that lets holders vote on interest-rate rules. That token lives on Ethereum; users still pay Ether to execute transactions. The token's circulating supply and distribution schedule are defined in the smart contract and are usually publicly readable. Confusingly, the word "coin" is used loosely in everyday speech to mean any crypto asset — in precise market-data terms, the coin/token distinction tracks whether the asset has its own chain.