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If you observe closely in the crypto world, most people more often use the terms "coin" and "token" interchangeably, and it is due to the fact that their differences are unknown to many. I have just learnt about those two, and I can't hesistate to share them here. It is critical to understand these two terms and their differences because it will aid your understanding of the crypto space. This is my first time of posting in the POB community and I hope I am welcomed, I usually share content about crypto as I learn new things, I love to share for others to learn along.

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Both coins and tokens are crypto assets as they are used to present units of blockchain value. They are frequently interchanged due to the fact that their usage overlaps considerably, but if we are to interpret them practically, you will realize that there are some differences between these two terms.

From the crypto perspective, **coins** are referred to as digital currencies that are based on a particular blockchain network. Coins gain their values from the underlying technology of the blockchain network, which qualifies them as medium of exchange.

They act as digital money on the blockchain; hence, users can send, receive, or mine the coins on the network. They are generally accepted as legal tender for different forms of transactions because they hold monetary values and users can trade them with other assets without any hindrance. BTC is the first crypto coin, and all the other crypto coins are referred to as altcoins.

BTC is qualified as a coin as it operates under its own network, thus the Bitcoin network, and it has a ledger which publicly shows all transactions that are carried on. Transparency is guaranteed as the blockchain is a public database where all activities are recorded and displayed in public. A coin should possess all the features of money, such as being scarce, dividible, generally accepted, and many other important features.

Some of the altcoins use the same protocol as BTC as they are generated and spent using the same technology as the Bitcoin network. A clear example of a coin that operates with a similar protocol to BTC is Litecoin. There are other sets of coins that are built with other protocols on their own blockchain networks, and they act as native coins for those networks. Even though they are built on their own networks, their transactions are also public as they all use the blockchain technology. Examples of such coins include XRP, ETH, AVAX, Monero, etc.

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**Tokens**, on the other hand, are created for certain purposes, and they can be created and assigned value by anyone. In cryptocurrency, they can be issued by a particular blockchain network or project to offer their users some rights on the network. They are mostly created by smart contracts on the blockchain, and they are not as difficult to create as coins.

Depending on the network, rights could be in the form of voting rights so that users who own the token will be able to vote on proposals as a form of governance procedure to keep the network decentralized. 

The rights might also be in the form of earning equities, rewards, or points, and most token holders gain the rights to access some important features. Tokens gain their values based on their functions on the network, and they have value to those who buy them, but that does not totally guarantee them as legal tender for the transaction of goods and services. 

Tokens are not generally accepted as they are usually created to serve certain purposes, and they mostly lack some of the features of money. Most of the tokens are non-fungible, which disqualifies them as legal tender for exchange. They are also not generally accepted and are indivisible. Examples of crypto assets that are tokens include Uniswap, Chainlink, Polygon, Shiba Inu, Tera Luna, etc.

I hope you have seen the difference between the two. If you still find it difficult to grasp, use a scenario of money and a movie ticket as a case scenario. Coins are money as they have all the features of money and can therefore be used as a medium of exchange, even outside the cinema. A movie ticket, on the other hand, can be regarded as a token as it is created to serve as a right for people who buy it to be able to watch a movie, even though it is not generally accepted as money, and it has gained value in the cinema, but it can't be used outside the cinema as it was pursoely created as a ticket for a movie. 


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