Coins and tokens are both digital assets that can be traded on cryptocurrency exchanges. However, there are some key differences between the two.
Coins are digital currencies that use their own blockchain, such as Bitcoin and Litecoin. This means that they are independent of any other platform and can be used for a variety of purposes, such as buying goods and services or paying for transaction fees on their respective networks.
Tokens, on the other hand, are digital assets that are built on top of an existing blockchain platform, such as Ethereum. This means that they are not independent currencies like coins, but rather rely on the underlying blockchain to function. Tokens can be used for a variety of purposes, such as representing a company's stock or a specific asset, or being used as a utility within a particular ecosystem.
Another key difference between coins and tokens is their issuance. Coins are typically created through a process known as mining, where users compete to solve complex mathematical problems in order to create new units of the currency. Tokens, on the other hand, are often issued through initial coin offerings (ICOs), where a project sells tokens to investors in order to raise funds for development.