Token
A digital asset created on an existing blockchain platform using smart contracts. Tokens can represent various things including utility, governance rights, or real-world assets.
Why It Matters
Tokens represent assets or utilities on a blockchain, driving many of the functions in the crypto ecosystem. Understanding tokens is key for recognizing the different purposes cryptocurrencies can serve.
Example
For example, you might use an application token to pay for premium features in a blockchain game or as a reward for participating in its community.
Beginner Context
For newcomers, tokens highlight the diversity within cryptocurrency, showing how they can be used beyond just currency, encompassing a vast range of applications and rights in different ecosystems.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Shrimp
Crypto slang for a small holder of a cryptocurrency, the opposite of a whale. The term is relative and informal, used to describe retail investors with modest positions relative to large players.
Digital Asset
Any asset that exists in digital form and has value. In the context of crypto, digital assets include cryptocurrencies, tokens, NFTs, and stablecoins. They are stored on blockchains and can be transferred peer-to-peer.
Cold Storage
Keeping cryptocurrency private keys entirely offline to protect them from online hacks. Cold storage methods include hardware wallets and paper wallets, and are recommended for long-term holders of large amounts.
NGMI
"Not Gonna Make It." Crypto slang for a person, project, or decision considered doomed to fail financially. Often used mockingly about holders who make poor decisions or projects with flawed tokenomics.
Alpha
In crypto slang, "alpha" refers to early, exclusive, or actionable information about a project or trade that gives an investor an edge over the broader market. Finding alpha means discovering opportunities before they become widely known.