What are the differences between coins & tokens?

Coins are native assets operating on their own blockchain networks. Tokens, on the other hand, are not native assets and are issued through smart contracts. Tokens can be issued and operated on multiple blockchain networks. In CoolWallet App, we will highlight the mainnet of the token next to the token name. Kindly refer to the picture below.

For example, Ether (ETH) is the native coin on the Ethereum blockchain. However, ERC-20 tokens (e.g. USDT, WBTC) are tokens issued on the Ethereum blockchain. You may have noticed that tokens of the same name can also be seen on other blockchain networks. Making sure the mainnet you're using is extremely important prior to the transaction. 

Below are some commonly seen tokens:

  • ERC-20 tokens are issued on the "Ethereum, Polygon, Arbitrum, etc." networks 
  • BEP-20 tokens are issued on the BNB (BSC) network
  • TRC-20 tokens are issued on the Tron network
  • ARC-20 tokens are issued on the Avalance C-Chain
  • CRC-20 tokens are issued on the Cronos network

Lastly, transferring a token also requires a transaction fee (gas fee), which can only be paid by its mainnet coin. For example, transferring USDT (TRC-20) requires TRX (coin) as gas fee.

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