# Coins vs Tokens

Coins and tokens are both digital assets that can be traded on a [blockchain](/glossary/definitions/decentralization/blockchains.md). However, there are some key differences between the two.

Coins are cryptocurrencies that have their own independent blockchain. This means that they are not built on top of another blockchain, but rather have their own underlying network and infrastructure. Examples of coins include Bitcoin, Litecoin, and Ethereum.

[Tokens](/glossary/definitions/smart-contracts/tokens.md), on the other hand, are digital assets that are built on top of an existing blockchain. This means that they do not have their own independent blockchain, but rather rely on the infrastructure of the blockchain they are built on. Tokens are typically created through a process called "tokenization," which involves creating a [smart contract](/glossary/definitions/smart-contracts.md) on the blockchain that represents the token. Examples of tokens include ERC-20 tokens on the Ethereum network and BEP-20 tokens on the BNB Smart Chain network.


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