The terms “coin” and “token” are often used interchangeably, but there are a few key differences to be aware of.
Cryptocurrency coin is an encrypted digital currency meant to be used as a form of payment. A coin is a unit of value that operates on its own blockchain, independently of any other platform.
Tokens are used to represent digital assets that are fungible and tradeable, including everything from commodities to voting rights. However, rather than operating on their own blockchain, tokens are hosted by another platform, such as Ethereum (ETH).