TikTok is no longer just a place to share short videos or hop on the latest trend. TikTok has now become a way for creators to make real money and for viewers to support their favorite creators. One of the primary ways this happens is through TikTok Coins. But what are TikTok Coins? How do they work? Let’s explain it in easy terms.
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What Are TikTok Coins?
TikTok Coins are similar to digital currency that you can purchase and use exclusively on TikTok. You can think of these coins as tokens at an arcade. You buy the tokens with real money, then use the tokens to play arcade games or send gifts to creators during their live streams.
These coins are the basis of TikTok’s model for helping creators to make money. You would be watching someone’s live stream, and you enjoy their content, so you can send them virtual gifts using TikTok Coins. It is an easy way to say “I like your content” while actually helping that creator earn some money.
How TikTok Coins Work
The process operates as a chain reaction:
- You can buy coins by using real money.
- Use these coins to give gifts to the creators.
- The creators receive diamonds (not coins) in exchange for each gift.
- And then the creators can cash out their diamonds for real money.
So, when you give a gift that costs 100 coins, the creator does not receive 100 diamonds because TikTok takes a cut. The creator usually receives about 50 diamonds. Remember, TikTok is paying themselves before the money reaches the creators because they are the gatekeepers of all this.
How Much Do TikTok Coins Cost?
TikTok Coin prices can fluctuate depending on your region, but here are the standard prices in USD for comparison:
- 70 coins / $0.84
- 350 coins / $4.20
- 700 coins / $8.40
- 1,400 coins / $16.80
- 3,500 coins / $42.00
- 7,000 coins / $84.00
- 17,500 coins / $210.00
As you can tell, the larger the package, the greater the value you get for your purchase. The more coins you buy at once, the less you pay for each individual coin.
How to Buy TikTok Coins
There are two primary ways to buy Coins on TikTok:
Method 1: Buy coins in the TikTok app
- Open TikTok and navigate to your profile
- Tap on the three lines (hamburger menu) in the top right
- Click “Settings and Privacy“
- Scroll down to find “Balance“
- Select the number of coins
- Tap on “Recharge“
- Select your payment method (credit, PayPal or whatever you use)
- Submit order
Method 2: Buy coins through the TikTok website
It’s important to note that buying coins through TikTok’s website can be considerably cheaper than when the in-app method is used. App stores (like Apple’s App Store or the Google Play Store) will take a cut (or percentage) of in-app purchases, and TikTok offsets that charge (or cost) to users.
To buy through the TikTok website, log in to TikTok.com and access where TikTok has coins for sale. Follow steps 1 – 8 above to buy coins normally.
Understanding Coins vs. Diamonds
This is where a lot of people get confused, so let’s make it clear:
Aspect | TikTok Coins | TikTok Diamonds |
---|---|---|
What They Are | Virtual currency users buy to send gifts | Virtual earnings creators receive from gifts |
Who Uses Them | Viewers and fans | Creators and TikTokers |
Primary Purpose | To purchase virtual gifts during live streams | To track and convert gift earnings into real money |
How They’re Obtained | Purchased with real money via TikTok app or website | Earned automatically when viewers send gifts bought with coins |
Monetary Value | 1 Coin โ $0.01 โ $0.015 | 1 Diamond โ $0.005 (subject to TikTokโs policies) |
Conversion Rate | Coins โ Gifts โ Diamonds | Diamonds โ Real Money (USD) |
Cash Out Option | Cannot be cashed out, only used within TikTok | Can be withdrawn as real money through TikTok’s payout system |
Platform Fee | TikTok may charge slightly more for in-app purchases | TikTok takes approximately 50% cut before payout |
Refund Policy | Limited refunds available within 14 days for unused coins | No refunds once converted from gifts |
Storage | Stored in userโs TikTok wallet/balance | Accumulated in creatorโs earnings dashboard |
Expiration | Generally donโt expire once purchased | Must be cashed out according to TikTokโs payout schedule |
TikTok Coins:
- Purchased by viewers with real money.
- Used to purchase gifts.
- Cannot be redeemed back to real money.
- Stay in the TikTok ecosystem.
TikTok Diamonds:
- Where Creators earn gifts.
- Can cash out the diamonds earned into real money.
- Typically worth around half of the giftโs value when converting to redemptions.
- Is liable for TikTok payouts.
How Creators Make Money from Your Coins
When you purchase a coin gift for a creator, they don’t actually receive the full value of the gift. Here’s how it usually works:
- You spend 100 coins to purchase a gift
- The creator receives approximately 50 diamonds
- Each diamond is worth around $0.005
- So 50 diamonds = about $0.25
This means that creators are actually receiving around 50% of what you spend on gifts, with TikTok receiving the other 50% as a service fee.
Tips for Creators to Earn More Coins
If you are a TikTok creator looking to earn more with TikTok Coins, there are some strategies you can use:
- Use your live stream to be more engaging to your audience: Speak to your audience and engage in the comments section.
- Utilize call-to-actions: Ask your audience to send a specific gift for a special moment within your live.
- Go live during trending topics: If your live stream has more viewers, that means more potential gifts.
- Collaborate with other creators: If you are live-streaming with other creators, you can gain more viewers.
- Thank your top gifters: Offer recognition by thanking gifters by name.
- Provide exclusive content: Provide unique access or content to your biggest supporters on TikTok.
Should You Buy TikTok Coins?
Whether or not purchasing TikTok coins is worth it really depends on what you want to achieve.
Here are the positives:
- You want to support creators you like
- You enjoy engaging with the live stream features
- You have extra cash that you can spend on entertainment
- You want to support creators and help them earn money
Now, here are the negatives:
- You are on a strict budget
- You don’t really watch live streams
- You would rather support creators through other means (like sharing)
Read more: How to Check Your TikTok Watch History
Final Thoughts
TikTok Coins offer an easy way to give back to creators and make your TikTok experience even more enjoyable. It’s not as difficult as it seems once you realize what coins are. You buy some coins, send gifts to creators, and the creators receive diamonds in return. Simple enough, right? As a viewer, you show appreciation for the creator’s work, and the creators can earn money doing so.
Keep in mind that you only want to spend money on TikTok Coins if you can afford it. Like any entertainment spending, it should come from your disposable income, not money you have planned for essential or important things like bills or savings.
The ultimate goal of using TikTok Coins is to support the creators you enjoy and have some fun doing. Use TikTok Coins in as positive a manner as possible, and never feel obligated to spend money you cannot afford.