Cryptocurrencies are broadly divided into two categories, namely Coins and Tokens. A lot of people barely know the difference between them. Many think that coins mean exactly the same thing as tokens and use them interchangeably in their day to day conversation. But this is not the case. These two types of assets although similar in a lot of regards, they are still fundamentally different. To put it simply, coin basically refers to cryptocurrency that has it own blockchain and works independently of other platform while token refers to cryptocurrency that operates and based its existence on another platform for instance Ethereum. E.g. Tron, Vechain and Bytom
If we take a look on Coinmarketcap, a platform where all the cryptocurrencies are listed, we will see that they have categorized all the cryptocurrencies into two major groups, namely coin and token. You can take a look at the list if you wish to find out the nature of a specific cryptocurrency you have in mind. For the token list, there is also an additional column that indicates the platform which the token is based upon as shown in the screenshot below
We shall outline a couple of differences that are evident and eminent between these two categories of cryptocurrencies – the Coins and the Tokens.
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