Token Concept

What is a Token on the Binance platform?

In the world of digital currencies on the Binance platform, we often hear the term "Token," but what does it actually mean?

A Token is a digital asset created on a blockchain network such as Ethereum or BNB Smart Chain, and it is used for several purposes:

It represents a digital currency like $USDT or $BUSD

It grants you privileges or benefits in a specific project

Or it can be a unique token like NFTs

What is the difference between Coin and Token?

A Coin like $BTC or $BNB operates on its own blockchain.

A Token like $SHIB or $CAKE operates on another blockchain (such as BNB Chain or Ethereum).

Examples of Tokens available on Binance:

$CAKE on the BNB network

$UNI on Ethereum

$AXS in GameFi games

Why is it important for you to know about Tokens?

Because many opportunities on Binance depend on your understanding of tokens: from trading to the Launchpad, and even Staking.