# Token vs Coin

*Crypto & Digital Assets — Finicade finance glossary*

A coin is the native asset of its own blockchain — BTC on Bitcoin, ETH on Ethereum — and pays for that network's transactions. A token is issued by a smart contract on top of an existing chain and depends on it entirely. The distinction matters practically: creating a token costs a few dollars and no permission, which is why there are hundreds of thousands of them.

**Also known as:** crypto token, native coin, ERC-20

**Related terms:** [Cryptocurrency](https://finicade.com/glossary/cryptocurrency), [Ethereum](https://finicade.com/glossary/ethereum), [Smart Contract](https://finicade.com/glossary/smart-contract), [Tokenomics](https://finicade.com/glossary/tokenomics), [Airdrop](https://finicade.com/glossary/airdrop)

Source: https://finicade.com/glossary/token-vs-coin