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Today different colors are used to make it easier to identify coins that are similar in size but with different denominations.

That practice is inherited from a time when coins had to be made of metal that was worth roughly the same as its denomination. For example, a US dollar contained about $1 worth of silver, a British pound contained about £1 worth of silver, etc. Copper was used for low-denomination coins because it's inexpensive, silver was used for intermediate-denomination coins, and gold was used for high-denomination coins. Today many countries imitate that pattern by using copper or copper-plating for low-value coins, silver-colored alloys for middle denominations, and gold-colored alloys for high-value coins.

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