I’m guessing you have a bit of knowledge about the crypto world before coming to this article, but you never understood the difference between a crypto coin and token. You’ve come to the right place to get answers for both of those.
A crypto coin is a crypto asset with its own blockchain, rather than running on other cryptos asset’s blockchain. Crypto coin is more associated with the term cryptocurrency, Bitcoin, Etherum, and Monero are all crypto coins or cryptocurrencies.
Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
A token is the opposite of a coin; it’s a crypto asset that doesn’t have its blockchain but uses another cryptocurrency. One good example is the Tether token, which serves as a stable coin but runs on the Etherum blockchain.
Stablecoins try to peg their market value to some external reference; for Tether, in this case, it attempts to peg to U.S. Dollar. This works well for them since they have a market capitalization of 9$ Million and top the charts.
As you might have already guessed the main difference between the two is that one has a blockchain and the other doesn’t but runs on one that. Coins are usually used for one thing which is payments. While tokens have also other uses like a security token, asset token, and Stablecoins. For instance, when comparing a coin or cryptocurrency vs. utility token, utility tokens are used to access a product or service.
Basic Attention Token (BAT) is used in the Brave web browser ecosystem. Advertisers pay publishers with audiences in BAT, audience members receive BAT for viewing advertisers’ ads, and audience members can use that BAT to donate to publishers or keep the BAT for themselves.