What is a crypto token?

A crypto token is a digital asset created on top of an existing blockchain using a standard such as ERC-20, BEP-20 or SPL — representing anything from a currency to a membership, reward or voting right.

Token vs coin: the key difference

A coin has its own blockchain (Bitcoin, Ether, BNB, SOL). A token is built on top of an existing blockchain and relies on it for security. Almost every new project launches a token — not a coin — because it is faster, cheaper and does not require building a whole network.

How tokens are created

A token is really just a smart contract that keeps a list of balances: who owns how much. When you "create a token," you deploy this contract to a blockchain. With a no-code creator you only choose the name, symbol, supply and features — the contract is generated and deployed for you.

The main token standards

• ERC-20 — the original standard on Ethereum, Base and Arbitrum.
• BEP-20 — the BNB Chain equivalent of ERC-20.
• SPL — the token standard on Solana.

They behave similarly for most projects. The right one simply depends on which chain you launch on. See ERC-20 vs BEP-20 for a deeper look.

What can a token represent?

• Currencies / meme coins — community-driven value.
• Utility — access to a product, service or feature.
• Rewards & loyalty — points users earn and spend.
• Governance — voting power in a project.
• Fundraising — distributing ownership to early supporters.

Key things every token has

When planning your token you will decide on a name, a symbol (ticker, e.g. BTC), a total supply, and the number of decimals. You can also add optional features like minting, burning, a transaction tax or an anti-whale limit. Our free tools help you plan supply and tokenomics.

Token vs coin: what’s the difference?

People use “token” and “coin” interchangeably, but they mean different things. A coin is the native asset of its own blockchain — like ETH on Ethereum — and is used to pay that network’s fees. A token is created on top of an existing blockchain using a smart contract, and relies on that chain’s coin for fees. The vast majority of new crypto assets are tokens, because creating one takes minutes, while launching a coin means building an entire blockchain. We break this down further in what is cryptocurrency.

The main types of token

Tokens come in several kinds, defined mostly by their purpose rather than their technology:

• Utility tokens grant access to a product or service.
• Governance tokens give holders a vote over a protocol or DAO.
• Stablecoins hold a steady value — see what are stablecoins.
• Meme coins are community- and culture-driven tokens.
• NFTs are unique, non-fungible tokens — see what is an NFT.

For the full landscape, read types of cryptocurrency. The important point is that most of these are the same kind of fungible token under the hood — what changes is the design and purpose.

How to create your own token

Because a token is just a smart contract on an existing chain, you can create one yourself with no coding. You choose the name, ticker and supply, plan the economics with the tokenomics generator, connect your wallet, and deploy — paying only the network gas fee. The token is then a real, tradeable asset you fully own. This accessibility is why tokens have become the foundation of so much of crypto.

Frequently asked questions