Crypto coins vs Crypto tokens
Many of the crypto users around the world still think both are the same and have similar functions. Yet, they are completely different from each other, with a wide range of varied functionalities. Even, they both depend on the same potential blockchain network, but they follow different rules and functions.
Also, they carry a unique value that enables crypto users to lay a strong foundation for crypto investments. So, this blog will break down all the necessary information and differences between crypto coins vs crypto tokens.
First, let’s kickstart our blog with…
What Is A Crypto Coin?
The Crypto coin is a digital cryptocurrency that is mined and operated on its native blockchain network. Also, these crypto coins are widely utilized as a medium of exchange in the crypto market. And, these crypto coins function independently without any central bank or third party.
The crypto coin acts as a potential backbone for the efficient functioning of the blockchain network. And, some of the common examples of a crypto coin are Bitcoin (BTC), Ethereum (ETH), etc.
What Is A Crypto Token?
Unlike crypto coins, the crypto tokens are created on the existing blockchain network. Every crypto token is created on popular blockchains like Ethereum, Tron, Polygon, Solana, etc. Also, with the facilitation of smart contracts, every transaction is automated, and they are stored securely.
Apart from the Bitcoin blockchain, other blockchains are composed of token standards like ERC20, TRC20, ERC1155, ERC721, etc. Depending on each of the token standards, the functionality of the tokens varies. And, some of the popular examples of crypto tokens are Pepe, Shiba Inu, Dogecoin, etc.
As we have had a detailed glance at both the crypto coins and crypto tokens, it is the right time to know about their types in detail.
Different Types of Crypto coins and tokens
As cryptocurrencies have turned into a potential investment, there are different types of crypto coins and tokens are there with varied criteria. And, we have listed them in detail.
Crypto coins
As crypto coins are built on native blockchains, they are divided into two different types. They are,
Stable coins
Stablecoin is a type of digital asset that is usually pegged to a reserve asset like fiat currency, commodity, etc. Unlike other crypto coins, these stablecoins are stable in the volatile crypto market.
These stablecoins are ideal for everyday transactions and highly suitable for beginner-level traders. And, some of the examples of Stablecoins are Tether, USD coin, and Binance USD.
Customized crypto coin
The customized crypto coin is specially mined from the ground up of a native blockchain network. These customized crypto coins are created for a unique business purpose and mission.
As it works with its unique protocol, consensus mechanism, and reward system, they are more suitable for businesses. And, these kinds of crypto coins can be customized based on a project or business needs.
Crypto tokens
As crypto tokens have a wide range of business benefits, multiple types of crypto tokens are utilized for crypto projects.
Equity Token
The equity token is a popular kind of crypto token that represents ownership of a real-world asset, mostly a company’s shares, on the blockchain. And with blockchain technology’s transparency and efficiency, the investor can acquire equity rights like voting, dividends, and profit sharing.
Utility Tokens
The utility token is a unique type of crypto token that gives access to users access to a specific product or service. Unlike the equity tokens, the utility tokens do not represent any ownership or shares of a particular company.
Hence, these tokens are commonly used in DeFi platforms, gaming ecosystems, and NFT marketplaces.
Governance tokens
These types of crypto tokens are utilized that enable crypto users to participate in DeFi governance activities. Through this, DeFi users get the right to vote on the decisions that will be related to any blockchain project or decentralized application (dApp).
By these tokens, the DeFi voting is conducted for upgrading the platform or any other feature upgrades.
Security Tokens
Security tokens are backed by real-world investments like company shares, real estate, and other financial instruments by following the SEC rules. And, unlike other crypto tokens, these tokens are regulated by strict laws and regulations. Through these tokens, users can execute the transactions securely without any hassles.
Non-fungible tokens
NFTs or non-fungible tokens are digital assets where real-world art collectibles, songs, art pieces, etc, are tokenized into an NFT.
So, the crypto coins and crypto tokens may seem to look similar, but they are different in various aspects. Let’s see that in the next section.
Crypto Coins vs Crypto Tokens – A Detailed Comparison
Crypto coins and crypto tokens hold numerous differences with a wide range of functionalities. The top differences are illustrated as an infographic image below,
Ownership:
Crypto coins – As the crypto coins are mined on a native blockchain, they have full control over the network.
Crypto tokens – The tokens are created or minted on the existing blockchain, where they lack complete ownership.
Supply:
Crypto coins – They possess a fixed maximum supply in most cases, with some exceptions like ETH.
Crypto tokens – Depends entirely on the project’s needs and requirements, or its use cases.
Creation method:
Crypto coins – The coins are mined by blockchain network validators with the help of high-energy computers.
Crypto tokens – On the contrary, the crypto tokens can be minted on the existing blockchain network, where the smart contract features can be modified.
Quantity (On Single Blockchain):
Crypto coins – A single coin is entirely created on the native blockchain.
Crypto tokens – Numerous types of crypto tokens can be created on a single blockchain with numerous features.
Development complexity:
Crypto coins – To create a crypto coin, it is essential to build a blockchain from scratch.
Crypto tokens – On the other hand, crypto tokens can be created cost-effectively on an existing blockchain.
Functionality:
Crypto coins – The coins primarily function as a store of value, and they tend to conduct transactions.
Crypto tokens – The crypto tokens possess numerous functions like utility, governance, etc.
Interoperability:
Crypto coins – The coins are limited to their native blockchain.
Crypto tokens – But, the crypto tokens possess an interoperable nature where crypto tokens can be exchanged with multiple blockchains.
These are the common differences between crypto tokens and crypto coins. But, similar to the difference, each possesses various use cases within the crypto realm that have been covered in the next section.
Crypto Coins vs Crypto Tokens: Potential Use Cases
Both crypto coins and crypto tokens are the primary sources of assets in the crypto market. And, they carry multiple use cases that
Crypto coins
- Collateral – The crypto coins are utilized as collateral in DeFi spaces to borrow stablecoins for trading purposes. Also, users can stake, trade, and sell them for higher prices.
- Financial Payments – The coins have now turned into a potential financial payment globally.
- Asset Tokenization – The potential real-world assets, like real estate, intellectual properties, and stocks or commodities, are tokenized into crypto coins.
Crypto tokens
- Cross-border payments – Crypto tokens are presently used for every transaction beyond borders and regions.
- Investments – Newbie traders who want to invest in the competitive landscape choose a crypto token as a potential option.
- DAO Voting – The native crypto tokens of the DeFi protocol help users hold voting rights.
These are the common use cases of cryptocurrencies in the real world. Hence, the need and demand for new cryptocurrencies have increased rapidly. But, if you want to invest properly, then know about the best crypto coins and crypto tokens of 2025 in the next section.
Popular Crypto Coins and Crypto Tokens of 2025
Depending on the user’s needs, trading volume, and popularity, we have analyzed the crypto market and provided the top 4 crypto coins and crypto tokens of 2025. Let’s see them in detail.
Crypto Coins
- Bitcoin (BTC) – The first-ever popular crypto coin has a market capitalization of $2.35T. And, with the circulating supply of 19.89 million, Bitcoin tops the list.
- Ethereum (ETH) – The second-largest native cryptocurrency that has a circulating supply of 120.72M ETH.
- Tether – Tether is a popular crypto coin with a market capitalization of $155 billion, with higher user trust.
- XRP – With a market capitalization of $155 billion, XRP stays ahead in the competitive market.
Crypto Tokens
- Shiba Inu (SHIB) – This is a popular meme coin, aka ERC20 token, that has revolutionized the internet with its popularity.
- Wrapped Bitcoin (WBTC) – Created on the Ethereum blockchain, the WBTC crypto token is backed 1:1 with Bitcoin.
- CAKE – The native crypto token of Pancakeswap, this BEP20 token has a market capitalization of 815.9 million dollars.
- BAKE – Similar to the CAKE token, the BAKE (BEP20) token is the native token of the Bakeryswap DeFi platform.
Apart from these, the crypto market is flooded with a wide range of cryptocurrencies that offer a lot of benefits. And, as we have explained all the necessary details about the crypto coins and tokens, we will explain which is the best in the next section.
Coin Vs Token: Which has More Profit Potential and Why?
Both crypto coins and crypto tokens are beneficial for a potential investment. But the crypto token stays high in the competition due to its various benefits. Some of them are,
- Easily Tradable – The tokens can be easily tradable on various crypto exchange platforms.
- Cost-Effective – Crypto tokens can be created at an affordable cost that fits the pocket of a new user.
- Time-Saving – Within 3 to 7 days, the crypto tokens can be created, where startups can kickstart their business instantly.
- Low Barrier – Crypto tokens are often launched with a minimal price and launched easily.
Either for trading or business, crypto tokens will be an ideal start for the crypto journey. If you’re early, strategic, and informed, tokens can explode in value, delivering returns that coins rarely match.
Final Words,
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