Cryptocurrency tokens are stored in wallets and can be exchanged using private/public key combinations. Many cryptocurrency transactions are exchanged directly, but cryptocurrency exchanges like Binance exist to make converting tokens between each other and cashing out easier.
Cryptocurrency tokens are usually “mined” by processing blockchain transactions. Each blockchain has a different mining method, including Proof-of-Work, Proof-of-Stake, Proof-of-Skill, and hybrids of each model.
Still, cryptocurrency tokens are seen as the future of finance by many, and coins like Bitcoin are being more regularly accepted by merchants and other organizations as a form of payment. Tokens do not have their own blockchain; they are built on an already existing blockchain. Tokens can represent all kind of assets – from goods to a brand-new cryptocurrency.