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In the world of cryptographic assets, the word “coin” and “token” comes out.
The difference is as follows:
- Coins: native assets of your own blockchain or its network
- Token: Assets Issued on Existing Blockchain
It is easy to understand with the following image.
Coin = Infrastructure
Token = services and assets that move on the infrastructure
For example, Bitcoin’s BTC, Ethereum’s ETH and Solana’s SOL are close to the foundation for using that network.
On the other hand,アプリs such as UNI, LINK and USDT are issued on existing chains such as Ethereum and are used for applications, payments, governance, and service use.
However, in practice, exchanges and media may be called "coin". If you are looking at investments, it is important to check “w network is used, what is used, and where the value goes back”.
What is Coin?
Coins are the foundation of the cryptographic asset network.
Examples are as follows:
- Bitcoin BTC
- Ethereum ETH
- Solana
These are strongly linked to each blockchain and network.
Bitcoin makes BTC the center of money transfer and value preservation. In Ethereum, ETH is used to pay gas bills, which are network fees. Solana also pays the transaction fee by SOL.
In other words, the coin has a similar role to the fuel and foundation to move the network rather than just機ulation.
Main role of
Coins have several roles.
| Function | 内容 |
|---|---|
| Payment | Relocation of value on the network |
| Fee Payment | Used for gas bills when trading and app use |
| Network Maintenance | Mining and validator rewards |
| Save Value | Owned as a digital asset |
| collateral andングking | Used for DeFi and network participation |
For example, Ethereum requires gas bill when using the app. This gas bill pays with ETH.
This is a big difference with the。.
Even if you send a, if the foundation is Ethereum, you may need ETH as a fee. If you don’t have the itself, you can’t move if you don’t have a native asset for fees. There are quite a lot of beginners.
About
Tokens are digital assets issued on existing blockchains.
Made on Ethereum, Solana, BNB Chain, Polygon, etc.
Ethereum is well known for its ERC-20 standard. This is a mechanism to makeと連携s in、 with the same rules to make it easier to work with wallets, exchanges, and DeFi apps.
The following is an image:
| 例え | 内容 |
|---|---|
| コイン | OS, road, land, power |
| トークン | App, store, membership card, service ticket |
Tokens can be issued without creating a blockchain itself from scratch.
This is useful.
At the same time, it’s easy to make, so it’s a mix of low-quality projects and fraudulent s.
Examples
Common s include:
| トークン | Main Features |
|---|---|
| UNI | Uniswap related governanceガバナンス |
| LINK | Chainlink related Chains |
| USDT | Stable coin aiming to link US dollars |
| USDC | Stable coin aiming to link US dollars |
Note that s may be deployed in multiple chains.
Stable such as USDT and USDC can be used on multiple blockchains, such as Solana, as well as Ethereum.
That’s why it’s important to check out which chain is theチェーン.
You may lose your assets if you make a mistake in your network.
Token Type
Utility Token
The utility is aサービス used for service use and function use.
It is easy to image such as in-game currency, in-app usage rights, and payment of specific services.
However, even if it is written as "usable", it is difficult to remain the value if there is no real user.
Governance Token
The governance is close to the right to vote to participate in the project decision.
Used in DeFi and DAO.
However, even if an individual investor has only a small amount, it is another problem that can affect the actual decision.
It is not always worth the vote.
StableCoin
Stable Coin is a、 that aims to link value to a legal currency such as US Dollar.
USDT and USDC
In the cryptographic asset market, it is used for waiting money, money transfer, and DeFi use.
However, the price is not always completely stable. You need to check backing assets, issuing bodies, regulations, and liquidity on exchanges.
NFT
NFT is a性質 with unique properties.
It is used for digital art, game items, membership rights, and tickets.
ERC-721
NFT is not an image itself, but it is close to the proof of ownership and representation of rights on the blockchain. This is a misunderstanding.
Comparison of Coins and Tokens
The difference between and is summarized as follows:
| 項目 | コイン | トークン |
|---|---|---|
| 土台 | Unique chain or native assets | Issued on existing chains |
| Main role | Network Maintenance, Fees and Transfers | Service Use, Voting, Payment, and Representation |
| Example | BTC、ETH、SOL | UNI、LINK、USDT、USDC |
| Easy to make | Close | Easy to make |
| Risks | Uncompromising network usage | Issuer, design, fraud, liquidity |
| See Points | User, Fee, Development, Security | Use, Issuance, Demand, Right Design |
For beginners, it is enough to remember that the coin is the base and the資産 is the asset on it.
Then, there is an exception when you look at it in detail.
ETH is a native asset of Ethereum. In general, it is treated like a coin, but technically it is more accurate to say "the native currency of the network called Ethereum".
The term for cryptographic assets differs slightly from the law, exchanges, developers and investors.
It is more useful to see what assets are actually doing than strict classification.
How beginners can easily misunderstand
Call all as a coin
In everyday conversations, there are cases where crypto assets are called "coin".
However, there are actually many、s.
Most of DeFi, NFT, games, and stable are動s issued on existing chains.
s can be easily created
Tokens can be issued relatively easily with certain standards and tools.
This is easy to generate innovation, but also increases short-lived projects and fraudulent projects.
White paper SNS is exciting. Listed.
That’s not enough.
Coins are not safe
The coin is easy to be the foundation of the network, but it is not always safe.
There are chains with few users, chains with development, chains with deviated validators, and chains with high security accidents.
It is not limited to "st。 because it is a front chain".
This is where it is cold and quiet.
Token price and project growth are different
Even if the project grows, there is a design that does not return value to the。.
The user of the service is affected, but the is not used. Fee income does not relate to holders. Increased issue volume.
In this case, the growth of the business and the価格 price may be misaligned.
It is dangerous to overlook this in investment.
Points to invest
If you look at crypto assets as an investor, it is difficult for beginners to understand from major.
This is because it is easy to check the network usage, development status, market capital, volume, and information volume.
The items you want to check are as follows:
| 観点 | ation Point |
|---|---|
| User | Are wallets, transactions, and apps growing? |
| Fees | Is there a network usage fee? |
| 開発 | ly updated |
| Security | Is it possible to stop or hack |
| Dispersion | Is the operator or validator too biased? |
| Liquidity | Is it possible to buy or sell on major exchanges? |
| Is it too weak to domestic and foreign regulations? |
If you want to see the, you can check the issue volume, lockup, content of rights, usage, and revenue.
In particular, you can see whether the backing asset, issuer, and governance are actually voted and privileged, and the utility is actually used in the service.
I can't decide if the price is up.
Is it used? Design Back Value? Is the pressure sold too strong?
You can finally compare it as an investment target.
Diagram
The difference between and is the first stum point for beginners to learn crypto assets.
Basics are simple.
| 項目 | コイン | トークン |
|---|---|---|
| Self-chain or native assets | Issued on existing chains | |
| Function | Network Maintenance, Fees and Transfers | Service Use, Voting, Payment, and Representation |
| Example | BTC、ETH、SOL | UNI、LINK、USDT |
First of all, it is easy to understand by remembering the coin as "infrastructure" and theのサービス as "service and assets on it".
However, it is important to invest in it.
Is it actually used? Is the development continued? How much does it cost? Is it impossible to issue or sell pressure?
In the cryptographic asset market, it’s under the name.
Learn from major and see the設計 types and designs. In this order, it is quite difficult to confuse.
Reference
- Bitcoin.org, Bitcoin - Open source P2P money
- ethereum.org, Ethereum gas and fees
- ethereum.org, ERC-20 Token Standard
- Solana Docs, Fees