What Are Crypto Tokens?
The term crypto token refers to a special virtual currency token or how cryptocurrencies are denominated. These tokens represent fungible and tradable assets or utilities that reside on their own blockchains. Crypto tokens are often used to fundraise for crowd sales, but they can also serve as a substitute for other things. These tokens are usually created, distributed, sold, and circulated through the standard initial coin offering (ICO) process, which involves a crowdfunding exercise to fund project development.
Crypto tokens are a type of cryptocurrency that represents an asset or specific use and reside on their own blockchain.
Tokens can be used for investment purposes, to store value, or to make purchases.
Cryptocurrencies are digital currencies used to facilitate transactions (making and receiving payments) along the blockchain.
Altcoins and crypto tokens are types of cryptocurrencies with different functions.
Created through an initial coin offering, crypto tokens are often used to raise funds for crowd sales.