What is a Token? The Quick Guide for Crypto Investors

woman holding a coin with bitcoin logo

What is a Token? (Explain Like I’m 5)

Imagine you and your friends are playing a game, and you have these special tokens that can be traded for something valuable. In the world of cryptocurrencies, a token is like one of those special tokens, but in a digital form. It represents ownership, value, or access to certain services or products, like cryptocurrencies or NFTs.

Investor Takeaway

Think of it this way: when you buy tokens, it’s similar to buying “shares” in a crypto “company.” Just like when you buy shares of a company, owning tokens means you have a piece of that crypto project. That is, if the project grows, its tokens grow in value and the tokens you bought are worth more as well.


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