A term used to describe cryptocurrencies with specific use on their native blockchain networks.

A token is a digital unit used to represent value. It is a type of cryptocurrency that is designed to have a specific value other than just trading and exchange. Nevertheless, it can be used to substitute investment rights, as a digital receptacle for value storage, or to make transactions. Essentially, every cryptocurrency (referring to crypto coins) is a crypto token, but not all tokens are coins.

There are generally only four major serious types of tokens, corresponding to purposes for tokens. These are utility, payment, security, and stablecoin. A fifth, the meme token has its greatest examples in Dogecoin and Shiba Inu. The vast majority of tokens are created merely as speculative instruments and most become obsolete in a few weeks or months.

Every token on a blockchain uses the same creation protocol to ensure compatibility. For example, tokens on the Ethereum network use the ERC-20 protocol. Tokens on one network cannot generally be exchanged for tokens on another network without a bridge or using a centralized exchange.

A period when tokens are locked up from usage to protect the cryptocurrency, usually after an Initial Coin Offering (ICO).

A token lockup, also known as a vesting period, refers to a specific period where the developers of a cryptocurrency ‘lock’ tokens so that users cannot trade them. This period is usually brief but may be long. However, the objective of this lockup is to put a check on users selling off their tokens immediately after obtaining them. Such a situation would drive down the prices of the cryptocurrency and it will take extra effort to get these prices to rise.

Token lockups are a reliable safeguard against the possibility of a tanking cryptocurrency. Thus, due to the imposed period of waiting, the crypto asset is able to gather momentum and grow.

The alphabetical characters that represent cryptocurrencies, often their shortened names.

A ticker is the shortened name of a cryptocurrency and is usually composed of block letters. Examples of tickers are BTC (Bitcoin), BNB (Build N Build), ETH (Ether), USDT (Tether USD), SOL (Solana), and DOGE (Dogecoin).

Not all tickers are intuitively derived from the cryptocurrency's name. Polygon's ticker is MATIC. Others like this are Cosmos (ATOM), Monero (XMR) Stellar (XLM), Cardano (ADA) and Oasis Network (ROSE).

Token

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