If you’ve spent any time exploring the world of crypto, you’ve likely heard the terms “coin” and “token” used interchangeably. They both sound like digital money—and both can be bought, sold, and traded on exchanges. But are they actually the same? Yes. But also very different.

Let’s break it down.

Coin vs. Token

Same Same: Both are digital assets you can trade, store, and use for value exchange. Whether you're buying BTC or FDM, both coins and tokens are units of value recorded on a blockchain. You can trade them on crypto platforms, use them to pay for goods and services, or hold them in your wallet.

Different:

• Coins: Native to their own blockchain (e.g. BTC on Bitcoin, ETH on Ethereum)
  
  
• Tokens: Built on top of another blockchain using smart contracts (e.g. FDM or USDT on Ethereum)

Think of it this way: Coins function like an operating system. Tokens are apps running on that system.

What is a Coin?

A coin is a cryptocurrency that runs on its native blockchain. These networks are fully independent with their own consensus mechanisms, infrastructure, and governance.

Examples of Coins:

• Bitcoin (BTC) runs on the Bitcoin network using a Proof-of-Work (PoW) mechanism for transactions.
  
  
• Ethereum (ETH) — runs on the Ethereum blockchain, with Ether as its native currency. It recently moved from a PoW to Proof-of-Stake (PoS) mechanism which uses far less processing power.
  
  
• Solana (SOL) — runs on the Solana blockchain, which has been dubbed a serious competitor to Ethereum.
  
  

Coins are typically used as:

• A medium of exchange
  
  
• A store of value
  
  
• To pay gas/transaction fees on their native chain

What is a Token?

A token is a digital asset created on an existing blockchain—usually via smart contracts. It does not have its own chain and relies on the underlying blockchain (like Ethereum or BNB Chain) for security and infrastructure.

Examples:

• FDM (Freedom Token) — built on both Ethereum and Fuse blockchains
  
  
• USDT (Tether) — available on multiple chains, but originally launched on Ethereum
  
  
• Uniswap (UNI) — ERC-20 token on Ethereum
  
  

Tokens are generally used for:

• Accessing products/services within a specific ecosystem
  
  
• Governance (voting on protocol decisions)
  
  
• Rewards, staking, DeFi, NFTs, and more

Key Differences at a Glance

Which One Should You Use?

Use Coins if you:

• Want to invest in core blockchain projects (e.g. BTC, ETH)
  
  
• Need to pay gas fees for transactions on major networks
  
  
• Are looking for established digital currencies with strong security and adoption
  
  

Use Tokens if you:

• Want to participate in DeFi, NFTs, or platform-specific apps
  
  
• Are using exchanges like Bitazza that reward you in tokens like FDM
  
  
• Are engaging in staking, governance, or trading synthetic assets
  
  

Same Same, but Different — Know What You’re Trading

At the end of the day, coins and tokens both play critical roles in the crypto ecosystem. Coins build the foundation. Tokens create the experience. Understanding this distinction will help you:

• Navigate blockchain ecosystems better
  
  
• Make smarter investment decisions
  
  
• Know what’s powering your favorite dApps and platforms
  
  

So the next time you’re trading on Bitazza or exploring a new crypto project, ask yourself this question. Are you investing in the chain itself—or in something that’s built on top?

Learn more about the world of crypto on the Bitazza Blog: https://blog.bitazza.com/blog

Download Bitazza here: https://bitazza.onelink.me/YsZ4/xua047tn