Coin vs token: what's the difference?
A coin runs on its own blockchain, with its own nodes, rules and fees. A token is created on an existing blockchain, such as Ethereum or Solana, and follows that chain's rules and fees. Bitcoin and Dogecoin are coins. USDT on Ethereum is a token.
Coin vs token compared
| Feature | Coin | Token |
|---|---|---|
| Runs on | Its own blockchain | Someone else's blockchain |
| Who sets the rules | You: supply, block time, rewards, fees | The host chain; you control the token contract |
| Transaction fees paid in | Your coin | The host chain's coin (for example ETH) |
| Needs its own nodes | Yes | No |
| Explorer and wallets | Your own | Shared with the host chain |
| Mining or staking | Possible, you choose | No, the host chain handles it |
| Typical setup | From $149 one-time with RocketRPC | A small fee with a token generator |
Runs on
- Coin
- Its own blockchain
- Token
- Someone else's blockchain
Who sets the rules
- Coin
- You: supply, block time, rewards, fees
- Token
- The host chain; you control the token contract
Transaction fees paid in
- Coin
- Your coin
- Token
- The host chain's coin (for example ETH)
Needs its own nodes
- Coin
- Yes
- Token
- No
Explorer and wallets
- Coin
- Your own
- Token
- Shared with the host chain
Mining or staking
- Coin
- Possible, you choose
- Token
- No, the host chain handles it
Typical setup
- Coin
- From $149 one-time with RocketRPC
- Token
- A small fee with a token generator
When a token makes sense
Choose a token if you want to use an existing chain's users, wallets and exchanges, and you don't need your own rules for fees, supply schedule or block time. RocketRPC doesn't create tokens.
When a coin makes sense
Choose a coin if you want full control: your own supply schedule, mining or staking, your own fees and your own network. Communities, games and private business chains often need this.
Examples
- Bitcoin
- Coin. Its own proof-of-work blockchain.
- Dogecoin
- Coin. Its own proof-of-work blockchain.
- USDT (on Ethereum)
- Token. A smart contract on Ethereum.
- Cosmos Hub (ATOM)
- Coin. Its own proof-of-stake blockchain.
Want a coin with its own blockchain?
Create your own blockchainQuestions about coins and tokens
Is Bitcoin a coin or a token?
A coin. It runs on its own blockchain.
Can a token become a coin?
Yes, a project can launch its own blockchain and move balances to it. This is usually called a mainnet migration.
Is a coin harder to launch than a token?
It has more parts: nodes, an explorer and wallets. A builder like RocketRPC sets them up for you.