Supported tokens (2024)

FAQs

What are tokens used for? ›

Tokens have a huge range of potential functions, from helping make decentralized exchanges possible to selling rare items in video games. But they can all be traded or held like any other cryptocurrency.

Coins are digital assets that operate on their own independent blockchain. Tokens are digital assets that operate on an existing blockchain network. While coins primarily function as a medium of exchange, tokens aim to offer a wider range of functionalities within a specific project's ecosystem.

Coinbase Wallet supports the following networks: Ethereum, Polygon, Bitcoin, Dogecoin, Litecoin, Stellar Lumens, Ripple, and Solana. Coinbase Wallet also supports the following Ethereum Layer-2 networks: Arbitrum, Avalanche C-Chain, BNB Chain, Fantom Opera, Optimism, Polygon, and Gnosis.

In the blockchain ecosystem, tokens are assets that allow information and value to be transferred, stored, and verified in an efficient and secure manner. These crypto tokens can take many forms, and can be programmed with unique characteristics that expand their use cases.

Crypto tokens generally facilitate transactions on a blockchain but can represent an investor's stake in a company or serve an economic purpose, similar to legal tender. However, tokens are not legal tender. This means token holders can use them to make purchases or trades just like other securities to make a profit.

In general, a token is an object that represents something else, such as another object (either physical or virtual), or an abstract concept as, for example, a gift is sometimes referred to as a token of the giver's esteem for the recipient.

Token money is similar to fiat money which also has little intrinsic value, however they differ in that token money is a limited legal tender. The adoption of token money has improved transaction efficiency, as the practicalty of transacting with sums of gold poses a larger security risk.

The terms “coin” and “token” are often used interchangeably in crypto, but they are not the same. Coins function as a form of money, while tokens can be used for a variety of purposes. A coin is native to its Layer-1 blockchain, whereas tokens are created on top of existing chains.

KEY TAKEAWAYS: — Coins are any cryptocurrency that has a standalone independent blockchain (Bitcoin, Ethereum, Ripple…) — Tokens are digital assets that operate on an existing blockchain network instead of on their own. This gives them some interesting properties relating to interoperability.

A Digital Wallet Token is created when customer manually or through the action in an app, provisions a card into a Digital Wallet. Digital Wallet Tokens are returned as part of the digitalWalletTokens array property on the card object.

Is Ethereum a Coin or a token? ›

2 Many decentralized finance (DeFi) and other applications use smart contracts with blockchain technology. Ethereum and its token ETH, are an integral part of non-fungible tokens, decentralized finance, decentralized autonomous organizations, and the metaverse.

A digital representation of value or rights that is offered and sold for the purpose of: Facilitating access to, participation in, or development of a distributed ledger, blockchain, or other digital data structure. Raising capital for the development of the network or platform.

Some examples of such tokens include cryptocurrencies, such as Ethereum (ETH), or cryptocurrencies linked to other assets, such as USD Coin (USDC).

In Web3, tokens are used to refer to programmable stores of value that are stored in a blockchain. These tokens come in many shapes and flavors. Some tokens are merely updated versions of traditional finance instruments, other tokens enable for completely new ways of sharing value between people and groups.

Minting a token refers to the process of creating a new token. Minting a token involves writing a smart contract that defines the rules and properties of the token, including its name, symbol, and total supply. Once the smart contract is written, it is deployed on a blockchain, and the token is created.

Tokens are stateless: Authentication tokens are created by an authentication service and contain information that enables a user to verify their identity without entering login credentials. Tokens expire: When a user finishes their browsing session and logs out of the service, the token they were granted is destroyed.

Payment tokenization is the process by which sensitive personal information is replaced with a surrogate value — a token. That replaced value is stored in a PCI-compliant token vault owned by the token creator, which can be an entity such as an acquirer, issuer, network or payment processor.

Token Utility and Functionality

For instance, in decentralized finance (DeFi) projects, tokens can be staked to earn rewards or used to participate in governance decisions. The more integral and sought-after a token's functionality is, the higher its demand, which can positively impact its value.