Bitcoin is a coin, Tether is a token. But what's the difference? Understand why—and you'll never confuse a coin and a token.
Imagine a city. It has its own currency—coins minted only there. They pay for travel, food, and services. These are coins: Bitcoin in the Bitcoin network, Ether in the Ethereum network. They're not just a medium of exchange—they're the fuel that runs the entire system.
But foreigners can also circulate in this same city: tourists, merchants, artists. They use their own tokens—but only because the city has adopted rules that allow these tokens to be exchanged. These are tokens: USDT, USDC, NFT. They live in the network, but they don't manage it.
A coin is like a house owner. It determines the entry fee, how the rules are structured, and who can repair the walls. Without it, the network doesn't work: without a coin, there's no incentive for miners or validators, and no transaction fees.
A token is a tenant. It appears with the owner's permission (via a smart contract), uses the infrastructure, but doesn't affect the foundation. It can be a currency, a ticket, a stock, or an image—but it always depends on someone else's system.
A coin is always tied to a single network. Bitcoin cannot exist outside the Bitcoin blockchain. Its value lies in security, decentralization, and trust in the network itself.
A token can live in several places at once. Tether exists on Ethereum, Tron, and Solana. But in each of them, it's a guest. Its value isn't in the network, but in the issuer's promise (for example, that USDT is worth a dollar).
When you send Bitcoin, you communicate directly with the Bitcoin network. The commission is also in Bitcoin. It's like driving your own car on your own road.
When you send Tether via Ethereum, you're paying for gas in Ether, and Tether is just a passenger in the trunk. If you send the same Tether via Tron, you'll pay in TRX, not ETH. The token itself doesn't decide where to go—you choose the road, and it follows you.
If you store a coin, you're betting on the network. Its growth, security, and future.
If you store a token, you're betting on two levels:
— on the reliability of the network it resides in,
— and on the integrity of the person who issued it.
Confusing them is like confusing gold and a warehouse receipt for gold. One is reality, the other is a promise.
The division into coins and tokens isn't bureaucracy. It's a reflection of two worlds:
— one builds the foundation,
— the other builds on top.
The first is slow, conservative, and stable.
The second is flexible, fast, and sometimes fragile.
Understanding this won't make you richer. But it will help you not lose what you already have.
Updated 30.12.2025