Crypto newbies often find it very difficult to differentiate between what is meant by a cryptocurrency coin and a cryptocurrency token. Surprisingly, many a times use both terms interchangeably. However, there is a clear difference in terms of meaning and usage between a cryptocurrency coin and a cryptocurrency token.
A cryptocurrency coin, like Bitcoin, Ethereum, Electroneum etc. is independent of any other platform. They possess such characteristics that they can be used as a form of currency outside their native ecosystem. On the other hand, Gochain, Mainframe, Polymath etc. are examples of cryptocurrencies that exist on other platform, in this case, Ethereum.
A cryptocurrency token represents an asset or utility possessed by a company which they give away to their investors during a public crowdsales called ICO (Initial Coin Offering). The tokens bought by investors during the ICO can later be used to redeem the utility within the token’s ecosystem.
In a nutshell, a cryptocurrency is coin designed and configured in such a way that it is independent of any other platform having its own separate functional blockchain. However, a cryptocurrency token is configured and designed in such a way that it doesn’t have its own independent blockchain, but built on the blockchain of any other cryptocurrencies.