Coins vs. Tokens: What Investors Need to Know Before Buying Crypto

Learning how to distinguish between crypto coins and crypto tokens can make or break an investment strategy. A few key factors make the difference between a profitable investment and a mistake resulting in a loss. Other details don't make an immediate difference, but can be the determining element in the broader strategy of a trader or investor.

The easiest way to understand the nuanced difference between all cryptocurrencies is to think of them in terms of coins and tokens. Coins and tokens are just two high-level types of cryptocurrency that make categorizing easier.

Crypto coins are cryptocurrencies that have their own dedicated network or platform. At a minimum, crypto coins have a use within the network they belong to. This is because the platform requires the coins for transaction fees.

Source Fool.com