Crypto 5 Types of Crypto Tokens

[Suba]

Tokens are also included in the cryptocurrency category, only tokens do not have their own blockchain but tokens run on blockchains belonging to other cryptocurrencies, so tokens cannot be mined.
There are five types of tokens that beginners especially need to know are as follows:
1. Payment Token
These tokens were created primarily as a medium of exchange or payment, as a unit of account and store of value. Examples of payment tokens are CakeBank Tokens and central bank issued tokens (CBDC).
2. Utility Token
Utility Tokens are purchased or held not for investment purposes but utility tokens are issued to fund the development of crypto projects and can later be used to purchase goods or services offered by the issuer of that token. Game Developers often issue Utility Tokens to fund their projects.
3. Security tokens
Securities tokens we own or buy for investment purposes, because security tokens will represent real assets such as property, stocks, bonds and other securities. The value of the security token has been pegged to a certain security price.
4. Non-Fungible Tokens
Non-Fungible Tokens or non-exchangeable tokens are digital representations of something unique assets that exist in the real world. This NFT does not have a standard value so it will be difficult to exchange for other items.
5. Stablecoin Token
Stablecoins are tokens that are pegged to certain assets such as fiat money, gold, cryptocurrencies and unsecured stablecoins that rely on smart contracts.

 

[btaliat]

Thanks for this information. I think what most countries are into now can be categorized under the payment token and not necessary be cryto coins because these tokens are issued by the central bank of those countries. But I do think that tokens are crypto coins in embryo because most tokens later become coins as I was told.

 

[Suba]

You are right there are some tokens that have turned into cryptocurrencies, such as Binance coin was originally just a token but now has changed to cryptocurrency or coin. actually tokens are also cryptocurrencies, the classification of tokens above is just a guide, especially for beginners so that they don't buy the wrong type of token according to their purpose.

 

[Carson20t]

Thanks for the categorization of the the tokens and their distinct features that make them different from coins.I have learnt how they are used.Are non fungible tokens cryptocurrency only or there are some that are actually not cryptocurrency and do have a fixed value and not a varying value attached to it?

 

[Wisdom01]

Yeah thanks for this list ,I think stable coin is non volatile compared to other crypto currency, but before investing on any coin make sure you make proper research and after that you could choose to invest on the coin of your choice and make more money from the market