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A token is defined as something that represents value, services, or a product.
There are three main types of tokens built with blockchain technology:
- A utility token that provides access to a product or service including software, digital content, etc.
- A security token that represents a real-world, physical asset.
- An equity token that represents partial ownership in a company.
All three types of tokens are bought and sold with the hope of gaining a profit.
The words “crypto asset” and “digital asset” can also be used to describe tokens.
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