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What is a Crypto Token?

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  3. Digital Asset

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You need to know that crypto tokens are a form of digital asset issued and operated on top of blockchain technology or other decentralized ledger technology.

Crypto tokens can be used as a means of payment or investment, and are often used in various decentralized applications such as DeFi (decentralized finance), NFTs (non-fungible tokens), and other blockchain applications.

Crypto tokens are generally divided into two types: utility crypto tokens and security crypto tokens. Utility crypto tokens are used to facilitate access or use of a product or service within the blockchain ecosystem, while security crypto tokens represent an investment in a project and provide ownership or participation rights in the project.

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