Digital currency is divided into coins and tokens.

Coin. This is the monetary unit of cryptocurrency, which works in its own blockchain. It can be mined by mining – providing the system with the computing power of your computer. Coins can be transferred to other blockchain users and sold for regular currency. Some companies accept them as payment for goods and services. For example, Microsoft sells the Windows operating system and the Xbox game console for bitcoins.

There are also coins that run on a rewritten bitcoin blockchain. They are called altcoins, alternative versions of bitcoin.

Token. This cryptocurrency monetary unit is created from an existing blockchain. They cannot be mined, but can be bought or received for activity. Tokens cannot even in theory be paid for; they are used to give the user access to the functions of the platform. If a coin is a bill, a token is a ticket. But if you put a token on an exchange, it can be exchanged for regular money at the current exchange rate.

Tokens can be used as an investment tool and proof of business rights, they can be used to participate in votes or surveys.

Tokens have more possibilities, but tokens are more valuable to investors because they are harder to create.