{"id":356970,"date":"2021-10-23T15:00:46","date_gmt":"2021-10-23T12:00:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-is-a-crypto-token\/"},"modified":"2021-10-23T15:00:46","modified_gmt":"2021-10-23T12:00:46","slug":"what-is-a-crypto-token","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-is-a-crypto-token\/","title":{"rendered":"#What Is a Crypto Token?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a9e97f10bac1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a9e97f10bac1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-a-crypto-token\/#Crypto_Basics\" >Crypto Basics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-a-crypto-token\/#Coins_vs_Tokens\" >Coins vs. Tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-a-crypto-token\/#How_Do_Crypto_Tokens_Work\" >How Do Crypto Tokens Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-a-crypto-token\/#Where_Can_You_Get_Them\" >Where Can You Get Them?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-a-crypto-token\/#Whats_a_%E2%80%9CNon-Fungible%E2%80%9D_Token\" >What\u2019s a \u201cNon-Fungible\u201d Token?<\/a><\/li><\/ul><\/nav><\/div>\n<p><strong>&#8220;#What Is a Crypto Token?&#8221;<\/strong><\/p>\n<div>\n<figure style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"type:primaryImage wp-image-759016 size-full\" srcset=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/09\/shutterstock_712597270.jpg?width=398&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 400w, https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/09\/shutterstock_712597270.jpg?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 1200w\" sizes=\"auto, 400w, 1200w\" src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/09\/shutterstock_712597270.jpg?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Representations of different cryptocurrency coins.\" width=\"1200\" height=\"675\" data-crediturl=\"https:\/\/www.shutterstock.com\/image-illustration\/huge-stack-cryptocurrencies-circle-golden-bitcoin-712597270\" data-credittext=\"Wit Olszewski\/Shutterstock.com\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><figcaption class=\"wp-caption-text\"><span class=\"type:primaryImage imagecredit\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.shutterstock.com\/image-illustration\/huge-stack-cryptocurrencies-circle-golden-bitcoin-712597270\">Wit Olszewski\/Shutterstock.com<\/a><\/span><\/figcaption><\/figure>\n<p>If you\u2019ve been reading about crypto and the blockchain lately, you may have encountered people talking about \u201ccrypto tokens.\u201d What exactly are these tokens and how do they differ from cryptocurrencies like Bitcoin? Read on to find out.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Crypto_Basics\"><\/span>Crypto Basics<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before we get into the differences between tokens and coins, you may need a quick refresher on what cryptocurrencies are. They are digital currencies that people can exchange with goods and services, similar to regular currencies like dollars and Euros. If you want to learn more about cryptocurrency, you can read our cryptocurrency explainer.<\/p>\n<p>Unlike traditional money, cryptocurrencies aren\u2019t managed by government institutions. All transactions involving particular cryptocurrencies get logged onto a centralized blockchain, a ledger that facilitates movements between secure addresses. Coins and tokens are both digital assets used to transact on the blockchain.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Coins_vs_Tokens\"><\/span>Coins vs. Tokens<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While the words \u201ccoin\u201d and \u201ctoken\u201d are often used interchangeably, they are distinct types of assets. The most significant difference between a coin and a token is where they operate. Coins are units that are native to the blockchain they\u2019re built on. For example, Ethereum is native to the Ethereum blockchain, whereas\u00a0Bitcoin\u00a0was made for the Bitcoin blockchain. These coins use \u201ckeys\u201d to signify ownership of some amount of cryptocurrency.<\/p>\n<p>Coins are frequently used in everyday transactions, like online shopping or sending someone cash. If someone sends you bitcoin, the blockchain facilitates an entry to increase your wallet and reduce the other person\u2019s balance, completing the transaction.<\/p>\n<p>On the other hand, tokens are not native to the blockchain they\u2019re operating on. For example, many of today\u2019s most widely used crypto tokens are run and exchanged on the Ethereum blockchain. Examples include Tether, which is intended to mirror the value of the US dollar, and Uniswap, a protocol used to trade different cryptocurrencies.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"How_Do_Crypto_Tokens_Work\"><\/span>How Do Crypto Tokens Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Crypto coins are comparable to the money you have in a bank account. While you own that amount, the money is not tied to any particular dollar bill or coin. It\u2019s when you withdraw from your account that you get a tangible representation of that value. On the other hand, tokens are \u201cowned,\u201d and each is an individual asset that you own. For example, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> tokens at arcades each represent a claim to play a game.<\/p>\n<p>If you send someone a token, it \u201cleaves\u201d your account and moves to another person\u2019s account. This is why tokens can also signify ownership or facilitate exchanges in property, such as with \u201cnon-fungible\u201d tokens. With NFTs, each token is like a \u201cdeed\u201d that represents your claim to a particular piece of art or digital artifact.<\/p>\n<p>Unlike coins, which use a system of public and private keys to facilitate transactions, exchanges made with tokens use a system called \u201csmart contracts.\u201d These blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications can be programmed to perform trades or transfers when certain conditions are met. Each blockchain that serves as a platform for tokens has a technical standard for defining a smart contract. For example, Ethereum uses one called ERC-20.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Where_Can_You_Get_Them\"><\/span>Where Can You Get Them?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A common way to get crypto tokens is through cryptocurrency exchanges. These are large-scale platforms that facilitate trades across a wide array of different coins and tokens. These will allow you to trade between different cryptocurrencies and regular currencies, manage various wallets, check the value of each crypto, and facilitate the process of sending and receiving currency.<\/p>\n<p>Some tokens get issued through other applications. For example, some newer mobile apps give crypto tokens to people that actively use their service. These often facilitate transactions between users and make in-app purchases.<\/p>\n<p>Sometimes, tokens represent something else you\u2019ve paid for. An example of this is a \u201csecurity token.\u201d These are assets that signify your ownership of part of a company. A security token essentially replaces share or stock certificates, an official document that shows how much of a corporation someone owns.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Whats_a_%E2%80%9CNon-Fungible%E2%80%9D_Token\"><\/span>What\u2019s a \u201cNon-Fungible\u201d Token?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Some of the most popular types of tokens are \u201cnon-fungible tokens,\u201d or NFTs. They are \u201cnon-fungible\u201d because they are not interchangeable with each other. Each token represents ownership of a particular asset, such as art, digital property, or the rights to a specific physical item.<\/p>\n<p>During its peak in popularity, many strange things were sold as an NFT. For example, in March of 2021, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> founder Jack Dorsey <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theverge.com\/2021\/3\/22\/22344937\/jack-dorsey-nft-sold-first-tweet-ethereum-cryptocurrency-twitter\">sold his first tweet as an NFT<\/a> in a digital auction. Other people have sold JPEG image files, game items, and paintings.<\/p>\n<\/div>\n<p><script>\n setTimeout(function(){\n  !function(f,b,e,v,n,t,s)\n  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n  n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n  n.queue=[];t=b.createElement(e);t.async=!0;\n  t.src=v;s=b.getElementsByTagName(e)[0];\n  s.parentNode.insertBefore(t,s) } (window, document,'script',\n  'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n   fbq('init', '335401813750447');\n   fbq('track', 'PageView');\n  },3000);\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.howtogeek.com\/758480\/what-is-a-crypto-token\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#What Is a Crypto Token?&#8221; Wit Olszewski\/Shutterstock.com If you\u2019ve been reading about crypto and the blockchain lately, you may have encountered people talking about \u201ccrypto tokens.\u201d What exactly are these tokens and how do they differ from cryptocurrencies like Bitcoin? Read on to find out. Crypto Basics Before we get into the differences between tokens&#8230;<\/p>\n","protected":false},"author":1,"featured_media":356971,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/09\/shutterstock_712597270.jpg?height=200p&trim=2,2,2,2","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-356970","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/356970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=356970"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/356970\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/356971"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=356970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=356970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=356970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}