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Binance Academy
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People use "coins" and "tokens" like they mean the same thing — but the difference matters.
A coin has its own blockchain. Bitcoin, Ethereum, BNB — each one powers the network it runs on. The coin is native to that chain.
A token is built on top of an existing blockchain. It doesn't need its own network and borrows the infrastructure. Most DeFi protocols, NFT projects, and Web3 apps issue tokens this way, typically on Ethereum, BNB Chain, or Solana.
Why does it matter? Because when you're evaluating a project, understanding whether it's a coin or a token tells you something about its architecture, its dependencies, and how it actually works under the hood.
A coin has its own blockchain. Bitcoin, Ethereum, BNB — each one powers the network it runs on. The coin is native to that chain.
A token is built on top of an existing blockchain. It doesn't need its own network and borrows the infrastructure. Most DeFi protocols, NFT projects, and Web3 apps issue tokens this way, typically on Ethereum, BNB Chain, or Solana.
Why does it matter? Because when you're evaluating a project, understanding whether it's a coin or a token tells you something about its architecture, its dependencies, and how it actually works under the hood.
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