An Overview of Cryptocurrency Token Types
Cryptocurrency tokens are fungible digital assets that can be used as mediums of exchange (traded) inside of the issuing blockchain project’s ecosystem. They are best described by how they serve the end user. Think of tokens as the foods that nourish blockchain-based ecosystems.
Each token type provides unique features based on usage. However, a token can fit into more than one category, so these groups are not mutually exclusive.
A categorization system has materialized to explain the different types of cryptocurrency and help people navigate the landscape. A complete understanding of crypto begins with a review of the most prevalent token types:
- Platform tokens
- Security tokens
- Transactional tokens
- Utility tokens
- Governance tokens