Coin vs token: the difference between crypto coins and tokens
By SendPay Business · · 2 min read
People use "coin" and "token" as if they mean the same thing, but there is a difference. A coin is the native currency of its own blockchain. A token is created on top of a blockchain that already exists.
The short version
- Coin: runs on its own blockchain and usually pays that network's fees. Bitcoin (BTC) on Bitcoin and ether (ETH) on Ethereum are coins.
- Token: issued by a smart contract on another chain. Most stablecoins, such as USDC, are tokens that live on Ethereum and other networks.
Why it matters when you send them
A token lives on a specific network, so sending USDC on Ethereum to an address that expects USDC on a different network can go wrong. Always check the network as well as the asset before sending. Moving a token also costs a fee paid in that network's coin, which is why an Ethereum wallet needs a little ETH to move tokens.
Neither is a promise of value
Anyone can create a token in minutes, so being a token or a coin says nothing about whether it is worth anything. Many scams launch new tokens with big promises, so check who is behind one and where it really trades.
Where SendPay fits
SendPay platforms let your customers buy, sell and hold crypto next to their cash in your branded app, with assets held with regulated partners and a trading fee you set.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.