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What is a Token? (Explained Simply)Tokens are mainly used as a payment method for services, as voting rights in ecosystems, or as digital assets. Besides their function as a medium of exchange . A �token� often refers to any cryptocurrency besides Bitcoin and Ethereum (even though they are also technically tokens). Because Bitcoin and Ethereum are by. Cryptocurrencies and crypto tokens are both digital assets but they have differences that make them uniquely suited for certain use cases.