What does token mean in cryptocurrency?

Another difference between the two is their representation. A crypto coin is the digital version of underlying value, which might be debatable, whereas tokens carry the asset or deeds . One can buy tokens with coins, but some tokens can carry more value than any of them. For example, equity shares of a company.

A crypto token is a virtual currency token or a denomination of a cryptocurrency . It represents a tradable asset or utility that resides on its own blockchain and allows the holder to use it for investment or economic purposes.

Every cryptocurrency is built on a blockchain. If a cryptocurrency doesn’t have its own blockchain and instead uses another cryptocurrency’s blockchain, then it’s considered a token .