A digital coin is an asset native to its own blockchain. For example, Bitcoin exists on the Bitcoin blockchain, Ether operates and functions on the Ethereum blockchain, etc.

Most tokens are used with decentralised applications (dApps). When developers create their tokens, they can be used to activate features of the application they were designed for.

Digital coins are generally used the same way as real-life money in your wallet. For example, Bitcoin can be used to pay for goods and services all over the internet and often in real-world places too. You can store it for a long time or swap it for something of equal value.

Tokens are used to interact with decentralised applications that are built on top of different blockchains.

Creating a token takes little technical ability, but it requires the developer to spend some native coins to the blockchain on which the token is being created.

• Security Tokens. Most tokens issued by Initial Coin Offerings (ICO) are security tokens. This is because the buyer invests their money in the ICO expecting a profit.
• Equity Tokens. It represents some stock or equity in the company that issues it.