A nice lot of U.S. Army Challenge Coins and patches.

Challenge coins are awarded as recognition of excellent performance

Challenge coins are also given as a form of recognition for excellent performance. For example, if a service member does something that is above and beyond, but doesn’t merit a formal award, a challenge coin may be given instead. The coin is often presented at a formal ceremony by the commander or the individual’s supervisor. The act of receiving a coin in such a manner is called “getting coined”. 

Challenge coins are given on achieving professional milestones

The challenge coins can be given in various ways: as an award or token of appreciation; during ceremonies such as at retirement parties and promotion events (such awards may also come with other gifts); when someone has been promoted into another rank.

Challenge coins are also given to recognize the completion of an important milestone, such as graduating from boot camp or completing 20 years in service for example; and they can even represent membership into certain organizations like veteran’s club that have their own set rules about how members should behave when receiving one another. It is not uncommon to make custom challenge coins for these special occasions with the name of the recipient engraved.

Challenge coins are given if a service member is part of a military campaign

Military challenge coins are also given to service members who have participated in a tour of duty, such as Operation Iraqi Freedom. These coins are a sort of chronological record of a service member’s military career. Most soldiers take pride in their coveted collection of coins and these even turn into much-prized family heirlooms.

How do you get challenge coin? (how to get coined?)

The tradition of challenge coins is that they are given to someone by a military member who has been assigned the responsibility for their care. This can be from an officer, non-commissioned or commissioned rank, and even civilians in some cases (such as veterans). 

The person receiving it must then carry this coin with them at all times because if someone challenges them to produce it, they must do so. The tradition is that if the person cannot produce it, they are then required to buy a drink for whoever challenged them.