Token vs Coins – Similar Concept with Subtle Difference

Token and coins in crypto space are used interchangeably, however both are completely different concepts.

Coins are often called altcoins can be referred to digital money created using encryption techniques which stores value over time. In simple words, it is equivalent to money but in digital form. The most famous example can be pointed to Bitcoin.

Bitcoin is a publicly distributed ledger where all transactions could be seen.

On the other hand, tokens are digital assets that are issued by projects which is usually used as method of payment inside project’s ecosystem. The only difference is token gives the holder to participate in the network activities.

Token represents an asset or utility. While security tokens are designed to be the company’s share, utility tokens have certain use case insider the project.

Summing up, coins are just method of payments while tokens may present a company’s share which gives access to certain products or service insider the platform.