What are Crypto Tokens?

Created by TeamPF Pinchforth, Modified on Tue, 29 Nov 2022 at 12:37 PM by TeamPF Pinchforth

Tokens take second chair to coins when it comes to ruling the cryptosphere, but that doesn’t stop them from making a major impact and driving most new projects in the crypto universe.

While all coins are technically “tokens,” not all tokens can be called coins unless they’re the native asset to a blockchain. Sometimes, the term “token” is used to describe any asset that’s not a blockchain-native coin.

Crypto tokens are built on top of an existing cryptocurrency’s blockchains, using the existing structure to validate and secure the projects. Tokens can serve a wide range of purposes, from facilitating decentralized exchanges to selling digital collectors items or objects and commodities in video games.

There are four primary types of tokens: DeFi tokens, governance tokens, non-fungible tokens (NFTs) and security tokens. Each one can be exchanged or owned in the same way as any other cryptocurrency, in your Zelcore wallet.

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