In the crypto world, coins and tokens are often considered similar, but it turns out they are very different, both in terms of definition, purpose and function. Coins are digital assets that are built and run on their own, i.e. independent, blockchain network and are issued directly by blockchain protocol developers.
Examples of some coins are: Bitcoin, Ethereum, BNB Smart Chain, Ada (Cardano), Xrp (Ripple) and so on.
Now, tokens are digital assets that are built on an existing blockchain network or can be said to be on board. Generally tokens operate on a blockchain network using the smart contract concept. The purpose of this smart contract is to bind an agreement between both parties.
Examples of some tokens are: Uniswap, Aave, Cake, 1inch, and many more.
To make the picture clearer like this:
Ethereum and Binance are coins that have their own networks, namely ERC-20 and BEP-20. Well, on the Ethereum network there are many ecosystems operating in various sectors and each has its own token. For example: Uniswap, Aave, Shiba Inu and others.
The Binance Smart Chain network is also the same, there are many ecosystems on top of this network. For example: Trust Wallet, Pancake Swap, and others.
So the conclusion is that coins are created from their own network while tokens are created from an existing blockchain network.
