What is a crypto token?
DefinitionA crypto token is a digital asset created by a smart contract on an existing blockchain, rather than being that blockchain’s own native coin. USDT on Tron, ERC20 tokens on Ethereum and jettons on TON are all tokens.
Token vs coin
The difference between a token and a coin is where it lives: a coin is the native asset of its own blockchain, while a token is issued by a contract running on a host blockchain. Bitcoin, ETH, TON and TRX are coins; USDT, tokenized gold and most project tokens are tokens.
Because a token rides on a host chain, every token transfer pays its fee in that chain’s coin. Sending USDT on Tron needs TRX or energy, and sending USDT on TON needs TON.
Token standards on each network
Each blockchain has its own rules, or standard, for tokens:
- ERC20 on Ethereum and other EVM networks; on BNB Smart Chain it is usually called BEP20
- TRC20 on Tron
- Jettons on TON
- SPL tokens on Solana
- NFTs, which are unique tokens rather than interchangeable ones
The contract address is the real identity
A token’s real identity is its contract address, not its name or symbol. Anyone can create a token called “USDT” with any logo, so scammers drop worthless look-alike tokens into wallets and hope you try to sell or send them.
Another costly mistake is sending a token to the token’s own contract address. The contract usually cannot send it back, so the funds are lost for good.
Tokens in Waletifi
Waletifi warns you about fake tokens and about sending a token to its own contract address, and it shows the fee in the host chain’s coin before you confirm. If the coin needed for the fee is missing, the app tells you before you try to send.
