The two most heard words in the cryptocurrency market are Coin and Token. So what is the difference between these two?

Coins are digital financial assets. These are like real currencies. It can be exchanged and used for commercial purposes. Tokens are also digital financial assets, but they act as a representation of real financial assets rather than being real financial assets like coins.

Every cryptocurrency has its own independent blockchain, which distinguishes it from other coins. The same cannot be said for Tokens. Tokens are built on the blockchain to which they are linked. So there can be many tokens belonging to a blockchain.

Although most of the coinss use the basic structure of Bitcoin to some extent, the programming and coding is done from scratch in order to be different from other coins and to offer unique features. The purpose of this is to improve existing technology and make it more efficient. To create a token, no programming changes or additional coding is required. All tokens on the same blockchain often use the same codes.

Since the creation of Coin requires programming and coding from scratch, the difficulty level of creation is higher compared to tokens that use the same code and programming.

Coinss by their very nature exist independently. It can be used for trading, as well as a measure of exchange and a unit of measure for digital financial assets. Tokens cannot exist independently. They are not direct financial assets as they are only represented and must be linked to a platform.