What are crypto tokens?

1 Crypto tokens are a type of cryptocurrency that represents an asset or specific use and resides on their blockchain. 2 Tokens can be used for investment purposes, to store value, or to make purchases. 3 Cryptocurrencies are digital currencies used to facilitate transactions (making and receiving payments) along the blockchain. More items...

What are Defi tokens?

DeFi tokens A new world of cryptocurrency-based protocols that aim to reproduce traditional financial-system functions (lending and saving, insurance, trading) has emerged in recent years. These protocols issue tokens that perform a wide variety of functions but can also be traded or held like any other cryptocurrency.

What are non-fungible tokens (NFTS)?

Non-Fungible Tokens (NFTs) NFTs represent ownership rights to a unique digital or real-world asset. They can be used to make it more difficult for digital creations to be copied and shared (an issue anyone who has ever visited a Torrent site full of the latest movies and video games understands).

What are compound tokens?

The popular savings protocol Compound, for example, issues all users a token called COMP. This token gives holders a vote in how Compound is upgraded. The more COMP tokens you have, the more votes you get. Non-Fungible Tokens (NFTs) NFTs represent ownership rights to a unique digital or real-world asset.