LESSON 6 — What Are Tokens & Coins?
Learn the difference between coins, tokens, and stablecoins.
Lesson Goal
By the end of this lesson, you’ll understand what coins and tokens are, how they differ, and what stablecoins are used for.
What Is Staking?
Staking means locking up your crypto to help support a blockchain or protocol.
In return, you earn rewards over time.
Staking is often compared to earning interest, but it works differently and carries risk.
What Is a Coin?
A coin is a cryptocurrency that runs on its own blockchain.
Coins are usually used for:
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Paying transaction fees
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Sending and receiving value
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Securing a network
Examples include native blockchain currencies.
What Is a Token?
A token is a cryptocurrency built on top of an existing blockchain.
Tokens are often used for:
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Access to platforms or services
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Rewards and incentives
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Governance or voting
Most projects create tokens rather than new blockchains.
Key Difference Between Coins and Tokens
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Coins power a blockchain
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Tokens run on a blockchain
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Both can be traded, stored, and transferred, but they serve different roles.
What Are Stable coins?
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Stablecoins are cryptocurrencies designed to maintain a stable value.
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They are usually:
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Pegged to fiat currencies like USD
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Used for trading and transfers
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Less volatile than other crypto assets
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Stablecoins are often used to move money without exposure to price swings.
Why This Matters
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Understanding the difference helps you:
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Know what you are buying
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Understand how projects work
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Avoid confusion when using wallets and exchanges
Lesson Complete
You now understand the difference between coins, tokens, and stablecoins.