What is Token vs Coin?

The difference comes down to where the asset lives. A coin is the native asset of its own blockchain and is used to pay that network’s gas fees. A token is created by a smart contract on top of an existing blockchain and relies on that host network to function and to process its transactions.

This matters because it affects how you handle assets. You always need a little of the host coin to pay gas when moving a token, and tokens follow standards like ERC-20 that determine how wallets and apps interact with them.

Example: the native asset of a network that you use to pay fees is a coin, while a stablecoin or project token issued by a contract on that same network is a token.

Safety note: anyone can create a token with any name, so a token appearing in your wallet proves nothing about its legitimacy or value. Scammers send worthless or malicious tokens hoping you interact with them. Do not approve or trade unknown tokens that show up unexpectedly. Related terms include ERC-20, gas, stablecoin, and dusting attack.