Bitcoin is one cryptocurrency; "crypto" is the whole category. The difference that matters most is who stands behind the coin. Bitcoin has no issuer, no company, no team holding a treasury, and a supply fixed at 21 million in its software. Most tokens launched since have an issuer: a team or company that created the token, decides how many exist, often keeps a large share, and can change the rules.
That difference changes what you are trusting. With Bitcoin you are trusting open rules that nobody can quietly change. With most tokens you are trusting the people who issued them. Both are unregulated in India and carry real risk. But if you are a first-time buyer, knowing which one you are holding is the first thing to get right.
The short answer
- Bitcoin: the first cryptocurrency, described in Satoshi Nakamoto's paper "Bitcoin: A Peer-to-Peer Electronic Cash System". No issuer. 21 million maximum, fixed in the software.
- Crypto: every digital token built on similar ideas, from large networks to tokens created last week.
- Tokens: usually created by a team, with a supply they set and often a share they keep.
What makes Bitcoin different from the coins after it
When Bitcoin started, nobody pre-sold it, and no company kept a pile of coins for itself. New bitcoin are issued only as rewards to miners for adding blocks, on a schedule that halves every 210,000 blocks, and the total can never exceed 21 million.
Nobody can change that from an office. The rules run on thousands of computers around the world, and each one checks every block. To change the rules you would have to convince the people running those computers to switch, which is why Bitcoin's rules have stayed so stable.
Many coins and tokens that came later work differently. Someone decides the supply. Someone can mint more. A foundation or company often holds a large share. A small group may be able to upgrade or pause the contract. That does not make every token a scam. It does mean your outcome depends on the decisions of particular people.
The question we have been asked every year since 2016
The number one request at Unocoin since 2016 has been some version of: when are you dropping a token?
I understand why. Tokens get a lot of attention, and a token from a platform people already use can feel like a natural next step. I have also known people who build tokens for years, so it is not that I do not understand how they work.
My answer has always been no. Not because it is hard. Creating a token is a thirty-second exercise. It is a few lines of code. That is exactly the problem.
Why a token is easy to make and hard to answer for
I used to be a financial adviser, a long time ago, and I learned the rules of the land. One of my own rules is simple: do not break the rules. I have always been conscious of securities regulators in every country I work in, and I have never felt comfortable putting a token out there.
Here is the scenario I keep coming back to. Say we launch a token and it does incredibly well. It goes up a million percent. Then it falls hard. Now every person who bought at the top is someone I am answerable to. They bought because they trusted Unocoin. Their loss would be on us.
With Bitcoin, nobody at Unocoin issued it. We did not set its supply, we do not hold a treasury of it to sell to you, and we cannot change its rules. Our job is to help you buy it, hold it, and move it to your own wallet if you want to. That is a much cleaner relationship between a platform and its customers.
And it matches what I believe. My core thesis is that Bitcoin is the future of money. A token would have been a side bet on something I do not believe in, sold to people who trusted me. I would rather say no every year.
How to tell if a coin has an issuer
Before you buy any coin, ask:
- Who created it? If there is a company, foundation or named team, it has an issuer.
- Who decides the supply? Is there a fixed cap in code that nobody can change, or can someone mint more?
- Who holds the most? If insiders or a treasury hold a big share, they can sell into any rise.
- Who can change the rules? Can a small group upgrade, pause or freeze it?
- Who is promoting it? If the people pushing it are the people who own the most of it, think hard.
If the answers point to a small group of people, you are trusting those people. Decide if you know them well enough.
Why "crypto" headlines confuse Bitcoin buyers
When a token collapses, the headline usually says "crypto crashes". A first-time buyer in India reads that and assumes it is about Bitcoin. Sometimes it is. Often it is about a token with an issuer that made bad decisions, or one that was never what it claimed to be.
Being precise about words protects you. If a story is about a token, ask who issued it and what they did. If it is about Bitcoin, ask what changed in the price and why. They are different questions, and they lead to different answers.
What this means for a first-time buyer
Start with what you can understand. Bitcoin's rules fit in a few sentences: no issuer, fixed supply, open network, held with keys you can control. That is a good place to begin learning, whatever you decide to do next.
A few rules apply to any coin:
- Anyone promising you a return is a red flag. Walk away.
- Be wary of celebrity or influencer promotions. Ask who benefits if you buy.
- Never share your OTP, password or recovery phrase. No genuine support team will ask.
- Only use platforms registered with FIU-IND, and check whether you can withdraw to your own wallet.
Crypto products are unregulated in India and can be highly risky, and there may be no regulatory recourse for loss. That applies to Bitcoin too. Bitcoin's price is volatile. The difference is not that Bitcoin carries no risk. It is that with Bitcoin, no issuer can change the deal on you.
None of this is investment advice. It is a way to think clearly before you decide anything.
Tax treats them the same
For tax in India, Bitcoin and other tokens are all virtual digital assets. Profit on a sale or swap is taxed at 30% plus 4% cess on the tax, 1% TDS applies on sales above the yearly threshold, and a loss on one VDA cannot even be set off against a gain on another. Swapping one token for another is a transfer too. Check your situation with a CA, and see the tax guide.
If you want to keep learning, the Learn page covers Bitcoin basics in plain words, and our AI guide on the home page will answer questions about the difference between coins, in English or Hindi, without recommending any of them.
Common questions
Is Bitcoin a cryptocurrency?
Yes, it is the first one. Crypto is the wider category of digital tokens that came after it. Bitcoin is different from most of them because it has no issuer and a fixed supply of 21 million.
Why does Unocoin focus on Bitcoin?
Its co-founder's thesis is that Bitcoin is the future of money, and Unocoin has refused to issue its own token because it would be answerable to everyone who bought at a top.
Who controls a token?
Usually the team, company or foundation that created it, which may set the supply, hold a large share, or be able to change or pause the contract.
Are all cryptocurrencies limited like Bitcoin?
No. Bitcoin's 21 million cap is fixed in its software. Many tokens have supplies that their issuers set or can increase.