What is a token in cryptocurrency?

In general, a token is an object that represents something else, such as another object (either physical or virtual), or an abstract concept as, for example, a gift is sometimes referred to as a token of the giver’s esteem for the recipient. In computers, there are a number of types of tokens.

The definition of a token is a sign, symbol or a piece of stamped metal used instead of currency. An example of a token is someone giving their friend a “best friends” necklace . An example of a token is what someone would use to play video games at an arcade.

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.

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.