What is the use of token in crypto?

The confusion between crypto tokens and cryptocurrency often stems from the overlap in their functionality and trading characteristics. However, it's crucial to understand the differences between the two to make informed investment decisions.

Crypto tokens are often leveraged as a means to raise funds for various projects through initial coin offerings (ICOs). In an ICO, a project will issue its own tokens in exchange for cryptocurrency or fiat currency, thereby raising capital to fund its development.

Crypto tokens serve as digital representations that denote an interest in an asset or are utilized to facilitate transactions within a blockchain network. These tokens possess characteristics that set them apart from traditional financial instruments while also sharing similarities with other digital assets.

BTCC, a prominent cryptocurrency exchange, offers a range of services related to crypto tokens. Among its offerings, BTCC provides platforms for spot trading, futures trading, and secure wallet solutions. These services cater to the diverse needs of crypto token investors and traders.

Despite their distinct nature, crypto tokens are frequently mistaken for cryptocurrency due to their tradable and exchangeable properties. Both crypto tokens and cryptocurrency can be bought, sold, and traded on various platforms, which contributes to this common misconception.