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Understanding The Types Of Crypto Tokens - All You Need To Know

Crypto tokens are a type of digital asset that are created and managed on existing blockchain platforms like Ethereum, Binance Smart Chain, and Polygon. Unlike cryptocurrencies such as Bitcoin or Etheru2014which operate on their own native blockchainsu2014tokens do not have independent blockchains.

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Understanding The Types Of Crypto Tokens - All You Need To Know

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  1. Types of Crypto Types of Crypto Tokens Tokens

  2. Introduction to Crypto Tokens Crypto tokens are a type of digital asset that are created and managed on existing blockchain platforms like Ethereum, Binance Smart Chain, and Polygon. Unlike cryptocurrencies such as Bitcoin or Ether—which operate on their own native blockchains—tokens do not have independent blockchains. Tokens serve various purposes in a decentralized ecosystem. They can represent: Value (like money or store credits), Ownership (like shares in a company or rights to an asset), or Utility (like access to services or functions within a dApp or platform).

  3. Main Categories of Crypto Tokens – Overview Crypto tokens come in several types based on their function and use case. The five main categories are: 1.Utility Tokens – Access or unlock services 2.Security Tokens – Represent real-world assets and are regulated 3.Governance Tokens – Used for voting in decentralized systems 4.Stablecoins – Pegged to stable assets to reduce volatility 5.Non-Fungible Tokens (NFTs) – Unique digital items used for ownership and collectibles

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