They are two different things. the easiest way to explain it is to use and Smart Media token and Steem as the coin.
The Steemit block chain holds value as it has Steem as it's main currency. If a Dapp such a s musing launches a token on the Steem block chain it will have value against Steem. On it's own it will have no value as it has to be backed by something.
Steem is used to make transactions happen on the Steem block chain. Tokens are built on Steem. Tokens will be used in the various communities where there is a Dapp. The more people using it will create a demand pushing the token price up and it should push Steem up in value as well. The more Steem locked up in tokens the better as it will be scarcer and less going to the exchanges.
Tokens are virtual resources. Think: unwaveringness focuses, disclosures, in-amuse reviews, and even affiliation shares.
Here's a genuine perspective:
When you store $2 in a pinball machine, you trade $2 for some stick balls (tokens) to play the excitement. Those tokens basically have an inspiration in the pinball economy. You can't utilize those tokens to pay for a substitute redirection, at any rate you could on the off chance that you had two or three coins.
A blended motorized cash anticipated that would be utilized as a sort of part. A coin is a unit of basic worth that works with no other individual blockchain, uninhibitedly of some other stage. It will by and large be utilized to store respect and pay for associations, likewise that you would utilize physical cash.
Bitcoin (BTC) is suitably the best-known electronic money coin far and wide, in any case it's a long way from the crucial coin open. Actually, at the time of shaping there were an aggregate of 888 coins in closeness. You may see incalculable particular coins hinted as altcoins, a social occasion of elective coins, essentially in light of the way that they offer a decision to bitcoin.
Most altcoins are a fork of bitcoin and were made utilizing bitcoin's open-source convention. Perspectives join Litecoin (LTC), Dogecoin (DOGE) and Namecoin (NMC).
In any case, there's additionally a huge once-over of different altcoins that haven't been gotten from the Bitcoin custom and have rather made their own one of a kind blockchain and convention. Some noticeable perspectives merge Ethereum (ETH), Ripple (XRP) and Cardano (ADA).