In the digital asset world, there is a fundamental difference between tokens and coins that industry players need to understand. Coins, such as Bitcoin and Ethereum, are digital assets that stand alone on their respective blockchains. They serve as a medium of exchange and store of value, and are often used for direct transactions and investments.
Tokens, on the other hand, are digital assets created on top of an existing blockchain, usually through platforms like Ethereum. Tokens often represent certain assets or utilities in the decentralized application (dApps) ecosystem and can be used for various purposes, such as a medium of exchange to run a service from the project that provides the token. Tokens can also function as digital assets to the point of representing ownership.
In conclusion, crypto coins and crypto tokens are both important assets that help the adoption of the crypto industry. The most obvious difference between the two is the blockchain used. Where coins have their own blockchain, tokens sit on another.