Words “coin” and “token” are often used as synonyms and considered by many people as interchangeable. But they refer to two completely different concepts. So why many cryptousers confuse coins and tokens and what is the crucial difference between them?
COIN
Coins have the same characteristics as money: they are fungible, divisible, acceptable, portable, durable and have limited supply. Most ambitious crypto enthusiasts insist that coins will replace conventional money in the future.
TOKEN
Tokens are digital assets, issued by the project, which can be used as a method of payment inside project’s ecosystem, performing similar functions with coins, but the main difference is that it also gives the holder a right to participate in the network. It may perform the functions of digital asset, represent a company’s share, give access to the project’s functional and many more — with the launching of new projects unknown facets of tokens’ functional are discovered. Ticket to a concert, for example, is a “real-life token” — you may use it at a certain time, at a certain place. You can’t go to the restaurant and pay your bill with concert ticket — ticket has its value only at concert hall. Digital tokens are the same — they have certain use case only inside certain project.
SUMMARY
Coins are just method of payment while tokens may present a company’s share, give access to product or service and perform many other functions. Coins are currencies that can be used for buying and selling things. You can buy a token with a coin, but not vice versa. Coin operates independently, while token has a specific use in the project’s ecosystem.
https://medium.com/@bonpay/what-is-the-difference-between-coins-and-tokens-6cedff311c31https://blog.chronobank.io/token-vs-coin-whats-the-difference-5ef7580d1199