Technically speaking, a token is just another name for a cryptocurrency or cryptoasset. It has, however, developed a few more precise interpretations based on the situation. Defining all cryptocurrencies that aren't Bitcoin or Ethereum is the first step (even though they are technically also tokens). The second is to refer to digital assets, such as various decentralized finance (or DeFi) tokens, that are created on top of the blockchain of another coin.

From facilitating decentralized exchanges to selling rare things in video games, tokens can be used for a variety of tasks. However, they can all be owned or exchanged in the same ways as other cryptocurrencies. In the field of cryptocurrencies, the word "token" is commonly used. In fact, as all cryptoassets are in fact tokens, you may even hear people refer to Bitcoin as a "crypto token" or another such term. The word has evolved to have two separate meanings, though, and they are both likely to be employed in conversation.

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