Ratings of popular cryptocurrencies are formed on the basis of their market capitalization - the amount of money invested in them. The second important figure in the criterion for evaluating a cryptocurrency is the value of their token.
Tokens can be used to perform various transactions within the network of the corresponding digital asset. Some cryptocurrency tokens can be mined, traders trade tokens for profit.
But what are tokens? Where do they come from, how are they bought, where are they stored?
What are tokens and what are they?
A token is a currency unit that represents the balance of an account in a particular cryptocurrency. All tokens are registered in a database. Owners access their funds as tokens using special applications, encryption keys and electronic signatures.
There are several types of tokens, each of which is used for a specific purpose. Equity tokens are company stock. Asset-backed tokens are digital liabilities that represent real products or even services (this could be a volume of memory in cloud storage, an hour of programmer time, and similar goods/services). And utility-tokens represent the value of a site - it can be currency in games like https://nftotters.com, reputation, likes, etc.
In fact, only asset-backed tokens are backed by something real. They are a kind of clone of a real good or service. For example, one such token can be equal to one trip to the ice rink. In this example, a trip to the rink is guaranteed by the company that provides the service or stores the product.
