What is a Crypto Token and what are the Different Types of Tokens

Types of Crypto Coins

As we mentioned above, there are three basic types of crypto coins-

  • Bitcoin– it is the first crypto coin in the market Built on Bitcoin blockchain.
  • Altcoins– these are created as an alternative to Bitcoin and are traded similarly. Ex: Ripple, Tether, etc.
  • Tokens– these are built on existing blockchains and don’t have one of their own. Ex: Ethereum.

Types of Tokens

Tokens are created in a limited number and are distributed through Initial Coin Offerings (ICO) and Security Token Offerings (STO). Token development was first started by Ethereum. There are currently more than 20,000 tokens that can be traded on the Ethereum blockchain (ERC-20).

  • Security Tokens
  • Utility Tokens
  • Asset Tokens
  • Reward Tokens
  • Currency Tokens

Token Development by Blockchain Development Company

It is important to decide which type of token you want to introduce into the market before you go ahead with the rest of the details. Releasing a crypto token is not an independent task. You will need to decide the type of blockchain, the exchange, and then take the necessary permissions from the government and authorities in the region.

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Amberrandleus

Amberrandleus

Antier Solutions — White Label Cryptocurrency Exchange Development Company