Understanding what a token is is essential for those who want to explore the universe of cryptocurrencies. The confusion between the terms "token" and "coin" (currency) is common, but these two categories have distinct characteristics that set them apart. While tokens can function as bonuses, points of reward, or representations of assets, coins are primarily digital currencies used as a medium of exchange. Tokens often operate on existing blockchain platforms, such as Ethereum, and can serve various purposes, including access to services, voting rights, or ownership of digital assets. Recognizing the differences between tokens and coins is crucial for understanding how blockchain technology and cryptocurrencies work, enabling users to make informed decisions when investing or utilizing these digital tools.