These Are Some of the Most Popular Digital Tokens in Crypto Markets

Cryptocurrency is different from crypto tokens. Cryptocurrency has its own blockchain, while crypto tokens use an existing blockchain.

It is vital to stay up-to-date with the terminology that defines the cryptocurrency ecosystem as more people around the globe are interested in investing in it. It is easy to become confused when there is constantly new information about cryptocurrency, which is a relatively new way of making financial transactions. Most people confuse cryptocurrency with crypto tokens. Although they might appear to be the same and form an integral part of crypto markets, they are distinct from one another. While both are digital assets, cryptocurrencies have their blockchain. Crypto tokens, on the other hand, are built on an existing blockchain.

These are some of the most popular crypto tokens you should be aware of:

  1. Tether

Tether, a cryptocurrency token, is "built on top open blockchain technologies." It leverages the transparency and security that open blockchain technology offers. It can convert cash into digital currency, and it is a stable coin. Stablecoins can be linked to an asset (most commonly the U.S. Dollar) that is not volatile in nature.

  1. U.S. Dollar Coin

U.S. Dollar Coin is an Ethereum-based stable coin. In 2018, the crypto-token was officially launched. USDC is a popular cryptocurrency among traders and investors. It can be moved between various cryptocurrency exchanges.

  1. Uniswap

Uniswap is a popular cryptocurrency trading platform because it allows for automated trading in DeFi tokens. It claims it eliminates trust intermediaries and unneeded forms of rent extraction, which allows for efficient, fast trading.

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  1. Binance USD

BUSD, a USD-backed stable coin that is 1:1 in value, is a very popular digital token after it was approved by the New York State Department of Financial Services. It can be used in exchanges and wallets. In certain situations, it can also serve as collateral or loan assets.

  1. Wrapped Bitcoin

Wrapped Bitcoin can be described as a digital token version of Bitcoin. It is based on the Ethereum blockchain. Because it is backed at a 1:1 ratio by Bitcoin, its prices can be pegged to Bitcoin at any time. It allows traders to move liquidity between Etherum (BTC) and Bitcoin. Wrapped Bitcoin makes it possible to transfer funds between Etherum and Bitcoin in an autonomous, decentralized manner.