What Is a Crypto Token? Token vs Coin Explained

Crypto tokens are taking up an increasingly important place in the crypto world. A token can be used to store your wealth and as a means of payment for your purchases. Follow our guide to learn everything about crypto tokens.

What Is a Crypto Token? Definition and Explanation

A token is a digital asset that traders often use as a store of value and a means of payment. Examples: Binance ATA token, Cardano token, Pantherswap token, Shiba Inu token, Swissborg token, Theta token, etc.

Tokens frequently originate from an ICO, or Initial Coin Offering. They do not have their own blockchain, which is why they cannot be mined. To this day, most tokens use Ethereum’s ERC20 protocol (the best-known token standard), but newer protocols such as NEO, TRON and EOS are now available and already fairly widely used.

To go further, also read our guides “Cryptocurrencies to Watch This Year” and “Free Cryptocurrency“.

What Is a Cryptocurrency?

A cryptocurrency, also known as a “coin” or “altcoin”, is a virtual currency that uses its own blockchain. Bitcoin and Ethereum, for example, are cryptocurrencies.

It is used as a way to exchange goods and services online. Note that cryptocurrencies are not issued by banks, and their transactions do not require anyone’s approval. Unlike a token, a cryptocurrency can be mined.

Difference Between a Token and a Cryptocurrency

For a quick understanding of the difference between a token and a cryptocurrency, here is a short summary:

• A token runs on a cryptocurrency’s blockchain and cannot be mined.
• A cryptocurrency runs on its own blockchain and can be mined.

What Is the Difference Between a “Token” and a “Coin”?

The terms “token” and “coin” are two very common expressions in the world of virtual currency. But what exactly are the differences between them?

Characteristics of a Coin

Each coin runs on its own blockchain. Coins fall into two groups. On one side, there are coins that were born after a disagreement among members of the Bitcoin pool, meaning they are built on the Bitcoin blockchain. On the other side, there are coins that run on their own blockchain. Either they have been based on their own blockchain since they were designed, or they started on an existing blockchain and were later moved to their own.

Characteristics of a Token

As we have just seen, tokens come from ICOs. They are cryptocurrencies that cannot be mined and that use a coin’s blockchain.

Quick Recap of the Differences Between Tokens and Coins

Simply put, a coin is a cryptocurrency that uses its own blockchain and can be mined. A token, on the other hand, uses a coin’s blockchain and cannot be mined.

Token, Altcoin, Cryptocurrency: What Are the Differences?

Traders tend to confuse these three terms, yet each has its own characteristics. Let’s start with cryptocurrency: it is a virtual currency used as a medium of exchange.

However, all cryptocurrencies other than Bitcoin are considered altcoins, for example Litecoin, Ethereum, Ripple, Dash, etc. Tokens, meanwhile, are cryptocurrencies that represent digital assets but run on another cryptocurrency’s blockchain. The key point is that these terms are different.

Cryptocurrency and Token: Terms That Are Often Wrongly Treated as the Same

In the cryptocurrency world, the variety of terms leads traders to mix them up. The two terms “cryptocurrency” and “token” are the ones most often treated as the same, yet they are different. You can see the difference between them above.

The Token That Could Overtake Bitcoin and Ethereum

Bitcoin’s growth was a hot topic in the cryptocurrency world over the previous year. Recently, however, it has seen a very significant drop in value. Many altcoins have emerged thanks to Bitcoin’s success.

Yet there is one token that could get ahead of Bitcoin and Ethereum: UNI, Uniswap’s governance token. It has been called the “best DeFi token”.

Which Altcoin? Top 5 Best Alternatives to Bitcoin

Although Bitcoin still holds first place among crypto tokens, other tokens have appeared. They are trying to carve out a place in the market and take part in the innovation process.

Here are the top 5 altcoins you should watch this year.

Blockchain: Definition

Whenever you hear the word token, the word “blockchain” always comes with it. But what exactly is it?

The term “blockchain” refers to a database used to store and transmit information. What matters most, and what sets it apart from other technologies, is that it is shared among its users.

Where to Buy Crypto Tokens

If you have decided to invest in tokens, you can buy them on trading platforms. The best option is to use the largest platforms, such as eToro, etc. If you want to buy anonymously, however, choose Binance.

We strongly recommend always buying crypto tokens and other cryptocurrencies on an established platform to avoid scams and keep your funds safe. Note that to buy the tokens you want, you first need to open an account with that broker.

How to Buy Crypto Tokens

Crypto Tokens: Pros & Cons

It may be hard to believe that crypto tokens have drawbacks, but the way they work does come with some. The table above summarizes the pros and cons of this type of cryptocurrency.

Do Crypto Tokens Have a Future?

It is not as exciting as the crypto world had hoped, but security tokens are much more achievable. All we can say is that, before long, this virtual currency will hold a very important place in the cryptocurrency world.

Which Tokens Will Explode in 2025? TOP 7 TOKENS

1. Uniswap Token UNI
2. RBIS Token
3. Kucoin Token KCS
4. Binance Coin BNB
5. BitTorrent token BTT
6. Ripple XRP
7. Safemoon SAFEMOON

Although Bitcoin and Ethereum account for most of the cryptocurrency market, these tokens have grown quite remarkably and are worth watching. Here is the key information on each of them.

Uniswap Token (UNI)

What Is the Uniswap Token?

The Uniswap token is currently the best DeFi token. It is considered a governance token. UNI launched in September 2020. There are currently 106,912,509 UNI tokens in circulation.

Why Invest in This Token?

Uniswap is the most widely used decentralized application. Trading its tokens does not require a smart contract. And if a project is launched on this platform, it gives you tokens equal to the number of Uniswap tokens you hold.

Pros and Cons of the Uniswap Token

RBIS Token (RBIS)

What Is the RBIS Token?

This token is the native token of ArbiSmart. Its advantage over others is that it carries the lowest risk. RBIS holds an important place in the crypto world, as analysts predicted 4000% growth for RBIS through 2025.

Why Invest in RBIS?

Investing in this token is very attractive: it is one of the tokens that saw a massive surge after launch. Traders can earn higher profits with it. Note, however, that the RBIS token is only available on ArbiSmart, an automated cryptocurrency arbitrage platform. To store it, you can use an RBIS token wallet, and you can buy it through a broker.

Pros and Cons of This Token

Kucoin Token (KCS)

What Is the Kucoin Token?

It is the native token of the KuCoin platform, the first platform open internationally. The KCS token entered the market in 2017. It originally ran on the Ethereum blockchain, but that is likely to change soon.

Why Invest in the Kucoin Token?

There are already 754,675,745 traders on the platform, which means many people use it. And if you hold six KCS tokens, you receive a daily bonus. Users can also use this token as a means of payment.

Pros and Cons of This Token

Binance Coin (BNB)

What Is Binance Coin?

It is the native token of Binance, the major cryptocurrency platform. It was created in 2017. BNB is a utility token that runs on the Binance ecosystem and ranks first in the list of tokens on the Binance platform, ahead of Binance USD, PancakeSwap Token (CAKE), Mdex Token (MDX), The Graph Token (GRT), Ontology Token (ONT), Bakery Token (BAKE), 1inch Token (1INCH), etc. And like many other tokens, BNB originally ran on the Ethereum blockchain.

Why Invest in This Token?

The BNB token can be used in many areas, and Binance Coin runs on the largest platform. Its biggest advantage is that you get a 25% discount on fees. You can also buy or sell other cryptos and pay with BNB on the Binance platform.

Pros and Cons of Binance Coin

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BitTorrent Token (BTT)

What Is the BitTorrent Token?

This token is the brainchild of Bram Cohen. BTT is a peer-to-peer protocol that lets you send files anywhere in the world. Unlike other tokens, it was built on the TRON blockchain from the start.

Why Invest in This Token?

BitTorrent tokens (not “Bit Torrent token”) are distributed through airdrops, and it is an ICO project. There are currently 990 billion BTT in circulation, even more than the number of Polkadot tokens in circulation. This token is available on various exchanges.

Pros and Cons of the BitTorrent Token

Ripple Token (XRP)

What Is the Ripple Token?

This token is Ripple’s native token and was launched in 2012. The Ripple token is pre-mined. It was created to provide a fast, secure means of payment with low fees.

Why Invest in This Token?

Investing in XRP is very attractive because it is easy to handle. More than 46 billion Ripple tokens are currently in circulation. This token is available on many exchanges. It is a token set to explode this year.

Pros and Cons of XRP

Safemoon (SAFEMOON)

What Is the Safemoon Token?

This token entered the market in March of this year. It runs on the Binance Smart Chain blockchain.

Why Invest in the Safemoon Token?

Even though it has only been available for a short time, SAFEMOON already holds a very important place in the market. There is currently 1 quadrillion Safemoon tokens in circulation. Its daily trading volume reaches up to $150 million.

Pros and Cons of This Token

Crypto Tokens: Full List of Other Tokens

Now that we have covered the crypto tokens set to explode, here is the full list of other crypto tokens.

KALLY Token

KALLY tokens are tokens that people interested in the Polkally project need to hold to confirm their support. Holders can use them to buy non-fungible tokens and voice their ideas during decision-making.

JPMorgan Token

After creating its own blockchain, JPMorgan (watch out for the misspelling “jp morgan”) launched its own token, “JPM Coin”. It was created in 2019 and can be exchanged for US dollars and other fiat currencies.

AGIX Token

This token belongs to SingularityNET. It can also run on Ethereum and Cardano. The AGIX token is designed to facilitate transactions and settlement, and to attract customers.

Doge Token (DOGET)

It is known by the acronym “DOGET”. Unfortunately, it cannot yet be bought with fiat currency. To get it, you first need to buy Bitcoin and then exchange it for Doge Token.

Chiliz Token

This token was created to build a connection between sports stars and their fans. To get it, fans may for example need to buy match tickets or jerseys. So if you are a sports fan, this token is made for you.

Student Token (STC)

This token was created for students. Holders can use it for trading and sell it through crowdfunding. If an STC token holder decides to sell their tokens, they can pay their tuition fees with the money earned from the sale.

PantherSwap Token (CAKE)

You may already have heard of it under the acronym CAKE. This token is mainly used as a reward in the PancakeSwap project, but it is also available on platforms such as Binance. Watch out for the misnomers “Panther Swap Token” or “Panter Token”: the correct name is “PantherSwap Token”.

Shiba Inu Token (SHIB)

The Shiba Inu token, or SHIB, is Shiba Inu’s main token. However, there are currently other tokens such as the Leash token and the Bone Shiba token. These two tokens are not yet available to buy, but will be soon. You can buy Shiba Inu tokens on exchanges. Note that there are also the Shiba Corgi token, Shiba Cash token, Shiba Killer token, etc.

Stellar Token (XLM)

Stellar’s native token is the Lumen (XLM). It is often used to send money and can be exchanged for currencies. To get it, you need to buy it on crypto exchanges with fiat money or other currencies.

Pi Network Token (Pi)

The Pi token appears in CoinMarketCap’s list of tokens. It cannot yet be converted into currency. The only way to get it is to mine it with your smartphone.

It would be hard to name every token in existence. But in addition to those listed above, there are also the Aura blockchain token, Automata token, Airbnb token, AMP token, Bullish token (watch out for the misnomer “boolish token”), BBTC token, Bullrun token, BUSD token, CHSB token, cross-chain token, CR7 token (Football Star token, not “footballstars token”), Digital Yuan token (Chinese token), DOT token, Doge DAO token, Doge Killer token, Ecomi token (OMI), Elrond token (EGLD), Spark token (Flare token), Fun token (not “funtoken”), Gitcoin token, Golden Shiba Inu token (not just “golden inu token”), GRAM token (formerly called the Telegram token), Helium token (HNT), ICP token, KDA token, etc.

Ethereum Token (ETH)

The Ethereum token is the native token of the Ethereum platform. It is often used to pay transaction fees for traders on this network. Note that Ethereum tokens are the most popular tokens after Bitcoin. They are identified by ERC, short for “Ethereum Request for Comments”, though there are also other names such as Ethereum Max token or Ethereum Pay Token. Here are the five types of tokens on this platform:

• ERC-20: the most widely used of these tokens
• ERC-721: allows the creation of non-fungible tokens
• ERC-223: an evolution of the ERC-20 token
• ERC-827: an extension of the ERC-20 token
• ERC-948: a token based on the subscription concept

How to Create a Token on Ethereum in 2025

Ethereum is the brainchild of Vitalik Buterin. This blockchain was launched in 2015. Just as Bitcoin has its own cryptocurrency, Ethereum has Ether.

Here are the steps to create your own token on Ethereum:

• Go to the Ethereum website
• View the template code
• Go to the Ethereum Remix website
• Click the “+” icon
• Enter the file name
• Choose the contract and the function
• Enter your token’s name

Trust Wallet Token

What Is It?

Trust Wallet is a wallet developed by Binance in 2018 to help token holders keep their tokens safe. They can buy, send and store their tokens in this virtual wallet. It is designed specifically for mobile.

Trust Wallet Token: Reviews

The table below shows traders’ reviews of the Trust Wallet token.

How to Add a Crypto Token to Trust Wallet

Adding a token to your Trust Wallet is quick and easy. In your wallet, there is a “+” icon at the top right: tap it and the full list of available tokens appears. Now select the token or tokens you want to add.

Crypto Token Authentication

Authentication is a way to make sure it really is the user and not, for example, an identity thief. There are several authentication methods:

• fingerprint recognition
• facial recognition
• voice recognition
• etc.

How Much Can You Earn by Buying Crypto Tokens in [userip_location type=”country”]?

According to SSRN research, if the token investors buy during an ICO (Initial Coin Offering) is listed on an exchange within two months, they can expect a return of up to 82%. SSRN’s research also states that a token’s price rises on average by 179% from its launch price as soon as it is listed on an exchange, and by up to 67% during the first month of trading.

So you can earn a lot more money by using this type of virtual currency.

How to Earn Free Tokens

It’s no lie: you really can earn tokens for free. How do you get free tokens? Here is one way to get tokens without spending a cent.

The solution is airdrops: you promote a project online and, in return, you receive tokens.

So don’t wait any longer: head to the projects’ websites to take advantage.

Conclusion: Is Now the Right Time to Buy Crypto Tokens?

Despite the impact of the health and economic crisis on the crypto world, virtual currencies have managed to stand out. Following that crisis, their prices rose remarkably, and this rise also applies to crypto tokens. So you would do well to invest in tokens right away to benefit from these attractive prices.

Which token to buy depends on your expectations. That said, we strongly recommend buying Bitcoin or Ethereum, as these two dominate the market. Don’t forget to buy on a secure platform. Above all, don’t invest too much money, to avoid a big loss, because investing in cryptocurrencies involves risk.

Want to share your experience with crypto tokens? Leave us a comment!

Read also: KuCoin Shares KCS Token Price · Shelby Crypto Review · Merchant Token Review