Coins and tokens

Lesson 2 of 3 · 4 min

People say “crypto” about two different things.

Coins

A coin is the native money of its own blockchain: BTC on Bitcoin, ETH on Ethereum, SOL on Solana. It pays the network fees.

Tokens

A token is created by a smart contract on an existing chain. USDT, USDC and most meme tokens are tokens. Many tokens exist on several chains at once.

Why it matters

To send a token you still need a little of the native coin for the fee.
The same token name on a different chain is a different asset. Send it only on the network the receiver supports.
Anyone can create a token in minutes. A name and a logo prove nothing.

For education only. Not financial advice.