MagiCoins are the currency of Magic Town's magical economy, much like the Simoleon is in the non-magical economy. MagiCoins are used to buy ingredients for spells and charms from the Magic Town vendors. They can also be used to buy dragon eggs, dragon treats, and a chew toy for dragons.
MagiCoins are also needed to buy the residential lots in Magic Town. In order to buy one, about 1000 to 1500 MagiCoins are needed.
Sims can gain MagiCoins by performing on one of the stages or at the small tricks table, by charming Nagganaste's pet snake, by winning a duel, or by selling ingredients to the vendors.
A Sim's inventory will only hold 32,767 MagiCoins at once, adding/winning more will cause no change to this number. Also, MagiCo's Bookshelf of Dimensional Storage will only hold 30,000 Magicoins, trying to add more gives the message, "Due to the atomic weight of MagiCoins, MagiCo's Bookshelf of Dimensional Storage can only safely hold 30,000 MagiCoins at any given time."