What Is a Coin in Crypto? Definition and Examples
A crypto coin is the native asset of its own blockchain, like BTC on Bitcoin or ETH on Ethereum. Learn what makes a coin a coin and how it differs from a token.
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A coin is a cryptocurrency that is native to its own blockchain. It is the asset the network uses to pay transaction fees, reward the miners or validators that secure it, and, on proof-of-stake chains, to stake. Bitcoin (BTC), Ether (ETH) and Solana (SOL) are all coins.
Key takeaways
- A coin has its own blockchain; a token is built on someone else's.
- Coins pay for gas (transaction fees) on their network.
- Coins are how a network rewards and secures itself, through mining or staking.
- In casual use, and on most exchanges, "coin" often means any crypto asset.
What makes a coin a coin?
A coin usually has three jobs on its blockchain:
- Fee payment: every transaction on Ethereum pays gas in ETH; every Bitcoin transaction pays fees in BTC.
- Security: miners earn BTC for adding blocks; validators stake ETH or SOL and can lose part of it for misbehaving.
- Value transfer: the coin can be sent between wallets like any other currency.
Examples of coins
| Coin | Blockchain | Consensus | Notes |
|---|---|---|---|
| BTC | Bitcoin | Proof of work | First cryptocurrency, supply capped at 21 million |
| ETH | Ethereum | Proof of stake | Pays for smart contracts and token transfers |
| SOL | Solana | Proof of stake | High-throughput chain with low fees |
| BNB | BNB Chain | Proof of staked authority | Used for fees on BNB Chain |
| LTC | Litecoin | Proof of work | Early Bitcoin fork with faster blocks |
Coin vs token at a glance
| Coin | Token | |
|---|---|---|
| Blockchain | Its own | Built on an existing chain |
| Created by | Launching a new network | Deploying a smart contract |
| Pays network fees | Yes | No, fees are paid in the host chain's coin |
| Examples | BTC, ETH, SOL | USDT, USDC, UNI, LINK |
For a deeper look at tokens, including stablecoins and governance tokens, read What Is a Crypto Token?
Coins in derivatives trading
Most perpetual futures volume is concentrated in large coins such as BTC, ETH and SOL. Each exchange sets its own funding rate for these markets, so the same coin can pay very different rates on Binance, Bybit or Hyperliquid at the same moment. You can compare them live on the BTC funding rates and ETH funding rates pages.
Frequently asked questions
- What is a coin in crypto?
- A coin is a cryptocurrency that is native to its own blockchain. It is used to pay transaction fees and, on proof-of-stake networks, to secure the network. BTC, ETH and SOL are coins.
- What is the difference between a coin and a token?
- A coin runs on its own blockchain, while a token is created on top of an existing blockchain using a smart contract. ETH is Ethereum's coin; USDT and UNI are tokens that live on Ethereum.
- Is USDT a coin or a token?
- USDT is technically a token. It is issued on existing blockchains such as Ethereum, Tron and Solana rather than having its own chain, even though people often call it a stablecoin.
- Why do people call every crypto asset a coin?
- In everyday language and on many exchanges, 'coin' is used loosely for any tradable crypto asset. The technical distinction only matters when you care about how the asset works under the hood.