Post
Topic
Board Beginners & Help
Re: What are crypto tokens?
by
odolvlobo
on 17/08/2016, 00:08:17 UTC
Hello,

I purchased some ether recently, and today saw a post about investing in crypto TOKENS coins.  This term I have not heard before (am newb).  Can someone please explain how "Tokens" are different than "currency/coins", how many are there? and what is a best investment?

There is no strict definition, but generally the word "token" is used for something that can have value, but is not generally used as money. Typically, a token doesn't have its own block chain and is hosted on another currency's block chain.

Also, a token may represent the value of something else and not have its own value.

For example, ether may be considered as a currency, but an ethereum contract, such as DAO, will have a token.