Coin vs Token: Native Assets and Tokens Explained

Last checked 2 October 2026

General information: This article is general information only. It is not financial, legal or tax advice.

Editorial note: This article contains no affiliate links. EatCryptoPie does not recommend any crypto asset, network or crypto platform in this article. Assets named here are examples only.

Scope: This guide uses Bitcoin, Ethereum and Solana as worked examples. Other networks can handle native assets, tokens and fees differently.

“Coin” and “token” are sometimes used as if they mean the same thing, and sometimes to mark a real difference. A common working convention is that a coin is the native asset of its own blockchain, and a token is an asset created on top of a blockchain that already exists.

That convention is worth knowing, but it is not a rule. Network documentation, regulators and everyday usage all apply these words differently, so the label on an asset tells you less than the details behind it. This guide explains the convention, where it breaks down, and the practical reasons the difference matters. If you are new to crypto, start with What Is Cryptocurrency?

The practical convention

	Native asset (“coin”)	Token
Where it comes from	Built into the network’s own rules	Created on an existing network, usually by a smart contract or a token program
Who sets its rules	The network’s protocol	The token’s contract or settings, within the host network’s rules
Used to pay network fees	Yes, on the networks covered here	Not on the networks covered here; moving it normally needs the native asset
Examples	bitcoin on Bitcoin; ETH on Ethereum; SOL on Solana	ERC-20 tokens on Ethereum; tokens created with Solana’s Token Program

In EatCryptoPie articles, coin or native asset means an asset built into its own network, and token means an asset issued on a network that already exists. Where a regulator’s own term matters, EatCryptoPie uses the regulator’s term.

Native assets: part of the network itself

A native asset is the one a blockchain is built around. On the three networks covered here, it is also the asset used to pay transaction fees.

Bitcoin. bitcoin.org uses “Bitcoin” for the network and lower-case “bitcoin” for its unit of account, the network’s own asset.
Ethereum. ethereum.org describes ether (ETH) as the native cryptocurrency that powers Ethereum. It is used to pay transaction fees, known as gas, and ethereum.org says gas fees have to be paid in ETH.
Solana. Solana’s documentation describes SOL as Solana’s native token, and says every Solana transaction requires a fee paid in SOL.

How Does Blockchain Work? explains how these networks record transactions.

Tokens: issued on an existing network

A token does not need a blockchain of its own. It is created on a network that is already running, and it relies on that network to record who holds it.

On Ethereum, tokens are created by smart contracts. The ERC-20 standard sets out a common interface for tokens within smart contracts on Ethereum, covering functions such as transferring tokens and approving someone else to spend them. A shared standard means wallets and other applications can work with any token that follows it. A separate standard, ERC-721, covers non-fungible tokens (NFTs), where each token is unique rather than interchangeable.

On Solana, tokens are created through Solana’s token programs, which the documentation describes as a common implementation for tokens. Each token has a mint account that records details such as its total supply and who, if anyone, can create more. Solana’s documentation says different tokens are distinguished by their unique mint addresses.

The same asset can exist in more than one form

Two examples show that the line is about how an asset is built on a particular network, not what it is called.

Wrapped native assets. ethereum.org explains that ETH predates the ERC-20 standard and does not conform to it. A smart contract lets you deposit ETH and receive the same amount of wrapped ETH (WETH), an ERC-20 token that can be redeemed for ETH one-for-one, so ETH can be used by applications built for ERC-20 tokens. Solana’s Token Program can wrap native SOL in a similar way, so it can be treated like any other token.
One token, many networks. Circle says its USDC stablecoin is natively supported on dozens of blockchain networks. On networks built to run Ethereum-style smart contracts it is a smart contract; on others it uses the network’s built-in token features. Each version is recorded on its own network.

The terms are not used consistently

The convention above is common, but it is far from universal. Expect to see the words used in other ways.

“Stablecoin” names a purpose, not a structure. The ATO lists USDC as an example of a stablecoin. Under the convention above, USDC is a token, because it is issued on networks that already exist.
Network documentation differs. Solana’s own documentation calls SOL a “native token”. ethereum.org calls ETH a native cryptocurrency and uses “token” for assets created by contracts on Ethereum.
Regulators use broad umbrella terms. ASIC’s information sheet INFO 225 now says “digital assets” instead of “crypto-assets”, and says its guidance applies to a wide range of assets “whether described as digital assets, crypto-assets, virtual assets, tokenised assets, tokens or coins”. The ATO uses crypto asset.
Legislation uses its own terms too. Australia’s Digital Assets Framework Act uses digital token as a statutory term. Its core definition turns on factual control of an electronic record (broadly, being able to transfer it and stop others from transferring it), rather than the coin/token convention used in this guide. Australia’s anti-money-laundering law, the AML/CTF Act, uses virtual asset. The Department of Home Affairs says that term replaced “digital currency”, with the changes for the virtual assets sector starting on 31 March 2026.
Function labels are common too. Official sources also describe assets by what they are for. ASIC’s guidance refers to utility tokens and asset-referenced tokens, and the ATO’s examples include an investment token, a game token and a non-fungible token. These labels describe what an asset is for, not whether it is native to its network.
Everyday usage is loose. Moneysmart notes that crypto includes assets described as coins, tokens or sometimes cryptocurrencies.

These sources are using the words for different purposes. The useful habit is to look past the label to how the asset is built and who controls it.

Why the distinction matters

Moving a token can require the native asset

A token transfer is still a transaction on its host network. ethereum.org says all Ethereum transactions require ETH for gas fees, and Solana’s documentation says every Solana transaction requires a fee paid in SOL. On these networks, a wallet holding a token but none of the native asset may not be able to send the token anywhere until it is topped up.

Check how fees are paid on the network you are using before relying on a transfer.

The network has to match

Because the same token can exist on several networks, sending it means choosing a network, and the receiving side has to support that network for that asset.

What happens after a mismatch depends on the networks and the type of receiving account. MetaMask notes that, for an account controlled by the same keys across Ethereum-compatible networks, the address can be the same, so assets sent on the wrong compatible network may still be recoverable by switching networks. That does not apply across every network or account type.

Before sending to a wallet or a crypto platform, check which networks it supports for that specific asset. How to Buy Crypto Safely in Australia covers what to check before using a crypto platform.

A token can have issuer or contract controls

A native asset follows its network’s protocol. A token also follows its own contract or token-program settings, which can give particular accounts administrative powers such as minting or freezing.

On Solana, a token’s mint authority can create new units of that token; if there is no mint authority, the supply is fixed. A freeze authority can freeze token accounts so the tokens cannot be transferred. These are standard features of the Token Program, not signs of a scam on their own, but they mean a token holder is relying on whoever holds those authorities as well as on the network.

Ethereum tokens are smart contracts, and a contract can contain more than the standard functions. ethereum.org’s walkthrough of one scam token, for example, shows a function that let only the contract’s owner create new tokens.

A token can also claim to represent something outside the blockchain, such as a dollar, a share or an in-game item. The network records who holds the token. Whether the claim behind it holds up depends on the issuer, not the blockchain.

Anyone can copy a token’s name

Because creating a token does not require building a new network, copies are easy to make. ethereum.org warns that scammers can deploy any smart contract they wish, and that scam tokens can use the same name and symbol as a legitimate token. On the same network, the contract address is the identifier that distinguishes the legitimate token from a copy. ethereum.org says the best source for a legitimate token’s address is the organisation behind it. On Solana, the equivalent identifier is the token’s mint address.

A familiar name in your wallet is not proof of anything. Moneysmart also warns about “mystery tokens” that suddenly appear in a wallet looking valuable: trying to sell one can trigger a smart contract that takes your other crypto. Its advice is to be careful before interacting with any token you didn’t trade. Avoiding Crypto Scams and Staying Safe covers scams more broadly, and What Is a Crypto Wallet? explains what a wallet actually holds.

The label doesn’t settle the legal or tax position

Calling something a coin or a token doesn’t decide how the law treats it. ASIC’s guidance says what matters is the bundle of rights, benefits, expectations and product features attached to a token as it is offered to the public.

For tax, the ATO uses one term, crypto asset, for coins and tokens alike, and says the way you use or transact with a crypto asset determines its tax treatment. Its guidance treats trading, exchanging or swapping one crypto asset for another as a disposal, and a CGT event happens when you dispose of a crypto asset. Swapping a token for a coin, or a coin for a token, is still a swap. Crypto Taxes in Australia covers the basics.

What the coin/token distinction tells you

Used in the conventional sense, it tells you how an asset is built: whether it is part of a network itself or created on top of one. That tells you which network records it and, on networks such as Ethereum and Solana, which native asset you need to pay fees for moving it.

What it doesn’t tell you

Whether the asset is legitimate. What it is worth, or whether it is worth anything. Who controls it, or whether anyone can still create more or freeze it. Which network a particular copy is on. How it is treated for tax or under financial services law.

The bottom line

The common convention is simple: a coin is a network’s native asset, and a token is issued on a network that already exists. On the networks covered here, bitcoin, ETH and SOL are native assets; ERC-20 tokens and tokens created with Solana’s Token Program are tokens.

The words are not used consistently, even by official sources, so treat “coin” and “token” as a starting point. Before sending, holding or relying on any crypto asset, check which network it is on and what pays the fees. For a token, also check who created or issued it and whether any mint, freeze or other administrative controls remain.

Coin vs Token: What’s the Difference?