Utility token grants users access to a company's products. It can only be used within that company's platform. Users gain access to use the company's products and systems by owning a particular amount of the company's utility tokens,. Utility tokens are not traded in exchanges and don't have wide acceptance. It's only accepted within the system of the organization that owns such tokens.

Security tokens are tokens that are traded in exchanges and can easily be converted to fiat or other cryptos. These tokens pass through rigorous processes before they are approved by SEC. security tokens are used for business purposes and transactions.