What are some popular digital tokens available in the crypto market?

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Tether is a crypto token that is “built on open blockchain technologies”.

As more and more people around the world prepare to invest in cryptocurrency, it is important to stay on top of the different terms that define the ecosystem. Since cryptocurrency is a relatively new mode of financial transactions, it’s easy to get confused with the constantly emerging information about digital assets. A common mistake that most people make is to confuse cryptocurrency with crypto tokens. Although they may seem similar and are an intrinsic part of the crypto markets, they are different from each other. Both are digital assets, however, cryptocurrencies have their own blockchain. Meanwhile, crypto tokens are built on an existing blockchain.

Here are some popular crypto tokens you should be aware of:

1. Attachment

Tether is a crypto token based on open blockchain technologies. In doing so, it takes advantage of the security and transparency that open blockchain technology offers. It converts cash into digital currency and is a stable coin. Stablecoins are tied to an asset, most commonly the US dollar, which is not volatile in nature.

2. US dollar coin

US Dollar Coin (USDC) is an Ethereum-based stablecoin. The crypto-token was launched in 2018. The USDC is popular among investors and traders as it is moved across various cryptocurrency exchanges and platforms.

3. Uniswap (UNI)

Uniswap is popular among crypto traders for its ability to facilitate automated decentralized finance (DeFi) token trading. The website claims it eliminates trusted middlemen and unnecessary forms of rent mining, allowing for fast and efficient trading.

4. Binance USD

BUSD is a 1: 1 USD backed stablecoin and is a popular digital token given its approval by the New York State Department of Financial Services. Besides being used in wallets or exchanges, it can also be used as collateral and loan asset in selected scenarios.

5. Packaged Bitcoin

Wrapped Bitcoin is a digital token version of Bitcoin. It runs on the Ethereum blockchain. Its prices are tied to Bitcoin at all times as it is backed by Bitcoin at a 1: 1 ratio. It also allows traders to transfer liquidity between Etherum and Bitcoin. This transfer is activated by Wrapped Bitcoin in a decentralized and autonomous way.

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