What is a Token?
The short answer
A cryptocurrency built on top of another blockchain, rather than having its own independent network.
Many tokens run on Ethereum, using it as underlying infrastructure rather than building an entirely separate blockchain. “Coin” is often used for assets with their own native blockchain (Bitcoin, Ether); “token” for assets built on someone else’s.
Related terms
Full glossaryFUD (Fear, Uncertainty, Doubt)
Negative information — sometimes true, sometimes exaggerated or false — spread to drive a price down.
Whale
Slang for an individual or entity holding a very large amount of a given cryptocurrency.
Staking
Locking up crypto to help secure a proof-of-stake network, in exchange for rewards.
Custodial Wallet
A wallet where a company (like an exchange) holds your keys for you.
DEX (Decentralized Exchange)
A crypto exchange that runs on smart contracts rather than a company matching buyers and sellers.
Decentralization
Spreading control across many independent participants instead of one company, so no single party can change the rules…
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