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Questions and Answers
What is a token?
What is a token?
- A digital representation of an asset or deed (correct)
- A type of coin
- A digital currency
- A form of payment
What is the main difference between coins and tokens?
What is the main difference between coins and tokens?
- Tokens are easier to create
- Coins are easier to create
- Tokens do not move around, while coins do (correct)
- Coins do not move around, while tokens do
What is a market maker?
What is a market maker?
- A person who buys and sells tokens
- A program that creates tokens
- A person who creates tokens
- A program that buys and sells tokens (correct)
How long have tokens been around?
How long have tokens been around?
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What is a DEX?
What is a DEX?
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What is the purpose of tokens?
What is the purpose of tokens?
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What is the most common use of tokens?
What is the most common use of tokens?
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What is the main advantage of tokens?
What is the main advantage of tokens?
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What is the main disadvantage of tokens?
What is the main disadvantage of tokens?
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What is the main purpose of market makers?
What is the main purpose of market makers?
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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.
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Description
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.
