Cryptocurrency tokens have been a hot topic for the past few months. There has been a lot of misinformation going around about them, so I will try to give a short and concise definition for this post.
Tokens are a representation of a particular asset or utility. They can be used as units of something that has value, similar to how stocks have units of company shares and coins have units of currency. Tokens can also represent assets such as houses, artworks or digital collectibles.
What makes crypto tokens different from coins is that cryptocurrencies usually do not need any central authority to regulate them or back their value, unlike fiat currencies which are backed by governments and central banks. That's why they are also called decentralized cryptocurrencies.