What is the difference between coins and tokens?
A coin is the native asset of its own blockchain and is used to pay that network's fees. A token is built on top of an existing blockchain rather than having its own network.
Coins
A coin is native to a blockchain and typically pays for transactions on that network. It's the 'base' asset of its chain.
Tokens
A token is created using an existing blockchain's rules. Stablecoins and many other assets are tokens — they ride on a host network and rely on that network's fees to move.
Why the distinction matters
To move a token, you usually need a small amount of the host network's coin to pay the fee. Running out of that coin can leave you unable to send your tokens.
Mixing up coins and tokens is a common beginner snag — especially the surprise of needing the native coin just to move a token.
Think of a coin as the local currency of a country and a token as a gift card that only works inside that country: to use the gift card, you still need a little local currency for the transaction fee.
- Holding a token without the network's coin can block transfers (no fee to pay).
- Token names can be duplicated across chains — verify which network you're on.
- A token existing is not a sign of legitimacy.
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Last reviewed 2026-06-25. This topic can change over time; always confirm current specifics from primary sources.