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what is a token

What Is A Token In Cryptocurrency? [Definition]

There are a lot of key things that you should know about in the cryptocurrency. I recently covered most of them. In this article, I’m going to share with you what is a token? In cryptocurrency.

You know that the term “token” is used in various spots. Such as ICO tokens, Bounty tokens, Airdrop tokens and so on. But, not everybody knows this term. Welcome by the way. This is the post for you. Keep until the end.

In order to understand what is a cryptocurrency token, you should know about what is a blockchain also. But you can still understand.

what-is-a-token

A token is called a digital asset but it’s not actually it is. Here is why.

Token is built on an existing blockchain. Like on ethereum, neo, stratis. However, most of the tokens these days are built in ethereum blockchain which also refer as ERC-20 based tokens.

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Where Can You Find Tokens?

Here I’m going to list where can you find tokens for you.

Initial Coin Offerings

An ICO is an introduction of a new cryptocurrency project to the market. For further information, Check out my ICO article.

In ICOs, people can buy new cryptocurrencies as tokens.

Airdrop and Bounties

These are the most popular ways to earn cryptocurrency. Previously I posted about how to earn cryptocurrency. Don’t forget to check that out.

Both of these come with an ICO. It’s like a promotional program. In Airdrops, the token developer gives you free tokens after you have done some simple tasks for them. Link social sharing.

In bounties, The exact same method but technically, It’s advanced than airdrops.

Where To Store Tokens?

The #1 wallet for ERC-20 based tokens is MyEtherWallet. But here I found an interesting article about ERC-20 based wallets. make sure to check that out too.
https://coinfunda.com/best-erc20-wallets-top-wallet-for-ethereum-tokens/

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