Challenge Coin Etiquette 101: Everything You Need to Know About Receiving a Challenge Coin

Challenge Coin Etiquette 101: Everything You Need to Know

Challenge-coin etiquette—knowing when, how, and why to carry, present, and respect these pocket-sized medallions—is the key to honoring a century-old tradition and the people who keep it alive.

There are 17.6 million U.S. veterans whose stories of service and resilience still deserve recognition, along with 4.6 million first responders—police, firefighters, EMS, and 911 dispatchers—who protect our communities every day. A shared challenge coin gives these men and women a tangible way to preserve the camaraderie, purpose, and pride they forged in uniform.

Article Highlights

• Challenge coins strengthen camaraderie and recognize service across the military, first responders, and corporate teams.
• The tradition began in World War I and evolved from a life-saving ID token to a morale-boosting custom.
• Coins commemorate milestones, boost morale, and foster team bonding.
• Proper etiquette involves caring for coins, carrying them appropriately, and respecting coin-check traditions.
• Exchanges are discreet; collectors can also purchase coins from admired units.

Why Challenge Coins Matter

As veterans and first responders transition to new phases of life, many deeply cherish the close bonds and shared purpose they experienced. A challenge coin offers a physical symbol of those relationships:

• Instant recognition – Quickly connects veterans and first responders who share similar backgrounds.
• Morale boost – A coin in your pocket reminds you that your contribution matters.
• Tangible heritage – Coins preserve unique stories and memories, often becoming cherished heirlooms.

Challenge coins now extend their powerful symbolism beyond military and first-responder units to sports teams, corporations, and community groups.

The History of Challenge Coins

The exact origins of military challenge coins are somewhat mysterious—but their purpose has always been clear: to recognize service, build morale, and honor camaraderie.

Army coins were among the first known challenge coins. The concept dates back to ancient Rome, where soldiers were given special coins as a token of appreciation for their achievements in battle. These early military coins served as both payment and recognition.

In modern history, the most widely accepted origin story dates to World War I, when a U.S. Army lieutenant had custom bronze medallions struck for his squadron, engraved with their emblem. After being shot down and captured by the Germans, he escaped and contacted French allies—who mistook him for a spy. According to legend, he showed them the coin, which saved his life and began the tradition of carrying a unit coin.

“The challenge coin saved his life.”
Captured during World War I and mistaken for a spy, an American pilot survived by revealing his unit’s medallion.

The Navy’s challenge coin history is less documented but linked to major events throughout military history, including the Civil War, World War I, and Vietnam. The tradition expanded significantly during Operation Desert Storm, solidifying the practice across all military branches.

Today, challenge coins honor deployments, leadership, excellence, and unit pride, expanding into law enforcement, firefighting, emergency services, and corporate settings. You can explore more about the military’s longstanding challenge coin tradition from the U.S. Department of Defense.

Explore more in our complete history of challenge coins.

Challenge Coin Meaning & Modern Uses

Challenge coins carry deep significance, serving multiple important roles across many types of organizations.

Leaders in any organization can create and distribute personalized challenge coins to their employees. This is one of the most meaningful and effective ways to recognize exceptional performance and dedication. Recognition through challenge coins is a win-win, as lack of appreciation is a primary reason employees leave their jobs—addressing this issue can lower employee turnover by as much as 31%.

• Military Recognition – The military remains the largest issuer of challenge coins, frequently exchanged within branches such as the Air Force, Navy, Army, Marines, and Coast Guard to honor service and achievements.
• First Responders & Public Safety – Police officers, firefighters, EMS teams, and 911 dispatchers use challenge coins to recognize bravery, teamwork, and service milestones within specific units or departments.
• Commemoration & Community – Custom challenge coins commemorate significant events or special achievements in groups beyond the military and emergency services, such as AA recovery milestones, Boy Scouts or Girl Scouts achievements, sports team championships, and corporate accomplishments.
• Team Unity & Morale – Regardless of their purpose or design, challenge coins significantly boost morale, enhance team bonding, and provide a tangible reminder of shared goals and values within any group or organization.
• Corporate Engagement – Businesses frequently use personalized challenge coins to acknowledge exceptional employee performance, strengthening internal culture and reducing employee turnover by reinforcing a culture of recognition and appreciation.
  

See our types of challenge coins for inspiration, including options for military units, police departments, fire teams, corporate recognition, sports teams, and nonprofit organizations—each designed to honor service, achievement, and unity.

Basic Challenge Coin Etiquette

Proper etiquette ensures respect for the coin and its tradition:

• Always carry your coin – Be prepared for spontaneous coin checks.
• Maintain condition – Keep coins clean and protected from damage.
• Respect its purpose – Avoid altering the coin (drilling holes, jewelry, etc.).
• Understand presentation – Coins should be discreetly exchanged, typically via handshake.
• Educate recipients – Ensure everyone understands the tradition and etiquette. For more on accepted challenge coin rules and etiquette, Military.com provides a helpful breakdown.
  

For a full breakdown of proper behavior, read how to practice proper military challenge coin etiquette.

Challenge Coin Checks

Coin checks reinforce camaraderie through tradition. Rules include:

• Always be ready – Keep coins easily accessible (within four steps).
• Initiating challenges – Clearly announce the coin check.
• Accidental challenges – Dropping a coin unintentionally initiates a check and is poor etiquette.
• Displaying coins – Place coins on a table, hold visibly, or clearly display in hand.
• Determining outcomes – The person without a coin typically buys drinks or accepts another penalty.
• Coin rankings – Common ranking systems: Medal of Honor, general officer, unit, promotional, store-bought coins, or presidential coins as top-ranking.
• One check per event – Tradition allows just one coin check per gathering.
  

Challenge Coin Exchanges & Collecting

Etiquette for exchanging coins includes:

• Handshake presentation – Discreetly passing the coin palm-to-palm.
• Public vs. private – Keep exchanges discreet unless planned as a ceremonial presentation.
• Collectors' etiquette – Buying coins is acceptable for collecting; purchased coins shouldn’t typically answer challenges unless officially awarded.

Not sure when to give one? Explore when to give a custom challenge coin.

Purchasing a Challenge Coin

Creating or acquiring a coin involves thoughtful consideration:

• Purpose – Clearly define intended meaning (recognition, commemoration, team-building).
• Design – Use relevant symbols, mottos, and meaningful imagery.
• Quality – Choose durable metals and finishes.
• Customization – Create unique designs tailored to your organization’s identity.

Design your own with our custom challenge coin options where you can choose from a wide variety of shapes, sizes, finishes, and presentation styles to create a coin that perfectly reflects your team’s story, mission, or milestone.

Why Choose Custom Challenge Coins?

At Custom Challenge Coins, we’re proud to support military members, first responders, and organizations across the country with high-quality, fully customized challenge coins. Whether you're honoring a team member, celebrating a milestone, or building a legacy of unity and service—our expert team is here to bring your vision to life.

• Free artwork & unlimited revisions
• Exceptional customer service and fast turnaround
• Fast turnaround and competitive pricing
• Trusted by military units, law enforcement, and major corporations

With decades of experience and thousands of coins produced, we understand the importance of precision, symbolism, and pride in every coin we create.

👉 Get a free quote today and see why thousands of teams trust Custom Challenge Coins to bring their stories to life—one coin at a time.