Coins vs tokens: what's the difference?

A coin belongs to the chain itself

A coin is the asset built into a blockchain's own rules. Bitcoin has bitcoin, Ethereum has ether, Solana has SOL and BNB Smart Chain has BNB. The network uses that coin to pay fees and, in most designs, to reward the miners or validators who keep it running.

Because the coin is part of the chain itself, no separate issuer is needed. Your wallet can receive it on that chain without knowing about any contract address first. When you send BTC, ETH or SOL you are moving the chain's native asset, not calling a token contract.

A token sits on top of another chain

A token is created by a program that lives on an existing blockchain. On Ethereum and other EVM chains, most fungible tokens follow the ERC-20 standard. On Solana, most fungible assets use the SPL Token program. On BNB Smart Chain, people often say BEP-20, but those tokens work much like ERC-20 tokens because BNB Smart Chain is an EVM chain.

The chain still matters, because it provides the security and charges the fees. If you hold USDC on Ethereum, you need ETH for gas to move it. If you hold USDC on Solana, you need SOL. The token may have the same brand and the same approximate price, but it is a different asset on a different network.

Wrapped tokens and bridged copies

Some tokens represent an asset that exists somewhere else. A wrapped token is a claim on coins or tokens locked with a custodian or a bridge. WETH is wrapped ETH inside Ethereum's token standard, useful because many contracts expect ERC-20 tokens. Wrapped bitcoin on Ethereum works differently: a custodian or bridge holds real bitcoin elsewhere and issues a token against it.

Wrapped and bridged tokens are convenient, but they add another layer of risk. You are no longer trusting only the chain you can see. You are also trusting the custodian, issuer or bridge that says the backing asset is really there. Bridges and their risks explains what can go wrong.

Why the same name can mean different assets

Crypto naming is loose. The same ticker can exist on several networks, and unrelated projects can choose the same name. There may also be a native asset and a wrapped version with almost the same label, such as ETH and WETH, or USDC and USDC.e. Exchanges often shorten all of them to the familiar brand name, which is helpful until you withdraw or deposit.

What actually identifies an asset depends on the chain. For an EVM token it is the chain plus the contract address. For an SPL token it is the mint address. If you change either, you have a different asset. A token scammer relies on people checking only the name and logo, so copied branding is common.

How to check a token before you use it

1. Confirm the network first. If the app, exchange or merchant expects USDC on Base, sending USDC on Ethereum will not arrive in the same place.
2. Find the official contract or mint address from the issuer's own site or documentation, not from a chat room, advert or direct message.
3. Paste the token contract into our token risk checker to see whether it is verified, who controls it and whether transfers can be paused or minted at will.
4. If you already have a transaction hash, open it in the transaction lookup to see which token contract was actually called.
5. For stablecoins, compare the asset against the stablecoins market page so you can spot wrapped versions, bridged copies and tokens that have drifted from their peg.

Once you get into the habit, the rule is simple: check the chain, then check the contract. The token name comes last.