What are crypto coins?

Every blockchain has its own money. Bitcoin has BTC. Ethereum has ETH. Solana has SOL.

That money is the coin. It's what you send to people, what you pay to use the network, and on some blockchains, what you stake to earn rewards.

Coins vs. Tokens

People mix these up constantly. Here's the actual difference.

A coin is what we call a blockchain's native currency. It's baked into the system. Bitcoin didn't invent BTC — BTC is Bitcoin's native currency.

A token? Created by coding and deploying it onto an existing blockchain. USDC exists on Ethereum, Polygon, Solana, and tons of other chains because someone coded it to work there.

Why blockchains need coins

1. People need to pay to use the network

   Every transaction costs something. That "something" is the blockchain's coin.

   Send Bitcoin? You pay in BTC. Use Ethereum? You pay in ETH. This isn't arbitrary. It's how the network prevents spam and keeps things running.

2. Someone has to secure the network

   A blockchain needs people maintaining it. On Bitcoin, miners do this. On Ethereum and similar networks, validators do it.

   How do you pay them? With the blockchain's coin.

   This is the genius part: the network creates new coins as payment for securing itself. No central authority needed. It's self-sustaining.

3. Scarcity = value

   Bitcoin will never exceed 21 million coins. Ever. That scarcity is built into the code.

   Ethereum? No limit, but new coins get created at a controlled rate.

Scarcity matters because it creates demand. Limited supply means people actually want it. But unlimited supply doesn't automatically mean worthless — it depends on how it's managed.

The most popular crypto coins

Thousands of cryptocurrencies exist today, but only a handful serve as major blockchain currencies.

New blockchains appear every year, each launching with its own native coin.

How do new coins get made?

1. Mining and staking

   After launch, new coins keep getting created. This is how network security gets paid for.

   Bitcoin miners earn new BTC for finding blocks. Ethereum validators earn new ETH for proposing blocks. The code controls how many coins get created per block. You can't cheat it. You can't create extra coins if the code says you can't.

   Pro tip: if you want to learn more about the difference between mining and staking, check out our dedicated guide

2. Pre-mined and launched

   Some coins don't start from zero. The creators mint a bunch of coins before launch and distribute them through:

   • Initial Coin Offerings (ICOs) — people buy coins before the project launches
   • Airdrops — free coins given to early adopters or specific wallet holders
   • Team allocations — coins reserved for founders and developers

   Think of it like a company issuing shares before going public.

   Examples: BNB (BNB Chain), XRP (Ripple)

3. Fixed supply vs. inflationary supply

   Different blockchains handle supply differently.

   Fixed supply: Only a limited number of coins will ever exist. No new coins are created after the cap is reached.

   • Bitcoin has a hard cap of 21 million. No more will ever exist.
   • BNB also has a fixed supply.

   Inflationary (unlimited) supply: New coins keep being created over time. The total supply grows forever.

   • Ethereum doesn't have a cap — new ETH is created constantly.
   • Dogecoin also has an unlimited supply.

   There's no "right" answer. Fixed supply can create scarcity and value. Inflationary supply can reward participants and keep the network secure.

What can you actually do with coins?

Coins have a few jobs. Sending money is just one of them.

Send them to people

The basic function. You have coins, you send them to someone else's wallet. Done.

Pay for transactions

This is mandatory on every blockchain. You want to move crypto, swap tokens, use a DeFi app? You need coins to pay the fee.

Vote on network stuff (sometimes)

Some blockchains let coin holders vote on decisions. Changes to the protocol, budget allocation, that kind of thing.

Bitcoin doesn't do this. Ethereum's voting is loose and informal. Some newer blockchains have structured governance where coin holders actually decide things.

Earn rewards by staking

On Proof of Stake blockchains, you can lock up your coins to help secure the network. You get paid for doing it.

Trade them in DeFi

DeFi apps let you swap coins, lend them, borrow them, and provide liquidity. If you want to be active in crypto beyond just holding, you need coins to do anything.

Can a blockchain exist without a coin?

In most cases, no.

The native coin creates the economic incentives that keep the network running.

Without it:

• validators or miners wouldn't earn rewards;
• users couldn't pay transaction fees;
• spam protection would disappear;
• there would be no incentive to secure the network.

The coin isn't just another asset—it is part of the blockchain's infrastructure.

FAQ

What's the difference between a coin and a token?

A coin is built into a blockchain. BTC only exists on Bitcoin (think real BTC, not wrapped versions on other chains). A token is coded onto an existing blockchain. USDC exists on Ethereum, Polygon, Solana, and others. Coin = native currency, Token = add-on.

Can I create my own coin?

Making a token on an existing blockchain? Sure, you don't even need to know how to code. Making your own coin? That means building a blockchain, which is hard. Most people don't do this.

Why do coins have value?

They're useful (you need them to use the network). They're scarce (especially coins with limits). And people believe they'll be valuable in the future. That's basically it.

Do all coins have a supply limit?

Nope. Bitcoin stops at 21 million. Ethereum keeps creating new ETH forever (just in decreasing amounts). Each blockchain decides for itself.

Can I earn coins by staking?

Only on Proof of Stake blockchains. You lock up coins, the network pays you rewards. Bitcoin doesn't do this — it uses mining instead.

What happens if a blockchain dies?

Its coin becomes worthless. Old defunct blockchains have coins trading for pennies or nothing. Happens all the time.

Are stablecoins coins or tokens?

They're tokens. USDC and USDT are deployed on multiple blockchains. They're not native to any single chain — they're add-ons someone built and deployed.