10 Questions
What is a token?
A digital representation of an asset or deed
What is the main difference between coins and tokens?
Tokens do not move around, while coins do
What is a market maker?
A program that buys and sells tokens
How long have tokens been around?
Since the invention of money
What is a DEX?
A decentralized exchange
What is the purpose of tokens?
To represent something other than money
What is the most common use of tokens?
To buy and sell on exchanges
What is the main advantage of tokens?
They are easier to create
What is the main disadvantage of tokens?
They are not as valuable as coins
What is the main purpose of market makers?
To buy and sell on DEXs
Study Notes
- A token is a digital representation of an asset or deed.
- Tokens can be bought and sold on exchanges, and some tokens have more value than coins.
- Tokens are easy to create, and market makers are common on DEXs.
- Crypto coins and tokens differ in a few ways, the most notable of which is that tokens do not move around, while coins do.
- Tokens represent something else other than just money, and they date back to before crypto was even a thing.
Test your knowledge on cryptocurrency tokens with this quiz. Explore the differences between tokens and coins, the creation and trading of tokens, as well as their representation of real-world assets.
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