Definition of a coin:
Cryptocurrency coin can be used for payment.
It can be divided into smaller values since it is divisible.
It operates on its own blockchiain protocol.
Definition of a token:
Cryptocurrency token, on the other hands, represent assets or utilities.
It cannot be divided into various denominations. The lowest possible denomination is one token.
It does not have its own blockchain, instead they are built on existing blockchains like Ethereum blockchain called themselves dApps.
It is easy to be created since is does not require to modify code or blockchain.
They work on only a particular blockchain and cannot be traded on other blockchains.
The token can only be functional on existing blockchain. It requires a platform to work. The tokens can be of plenty of different types like:
- Utility token: Utility tokens are particularly used for smart contract execution on that particular blockchain.
- Asset token: Asset token represents a physical or digital asset.
- Currency token: currency token similarly represents a Fiat currency.
- Equity token: Equity tokens are issued against securities.