This content is for educational purposes only and is not financial advice. bunq doesn’t give trading advice. Always do your own research or consult a qualified financial advisor before making any investment decisions. Cryptocurrency investments come with risks, including the potential loss of the principal invested. Prices can fluctuate significantly. bunq Crypto is powered by our partner Kraken.

In crypto, a token is a digital asset built on an existing blockchain rather than its own standalone network. Ethereum hosts thousands of tokens, from governance coins to stablecoins and NFTs, while the native currency (ETH) pays for transactions on that chain.

Token vs coin

Coins run on their own blockchain, Bitcoin on Bitcoin, ETH on Ethereum.

Tokens use another chain’s infrastructure. They’re created via smart contracts and follow standards (like ERC-20 on Ethereum) so wallets and exchanges recognize them consistently.

What tokens are used for

Tokens can represent almost anything on-chain:

Utility. Access to a service, app, or fee discounts.

Governance. Voting rights in a decentralized protocol.

Stable value. Pegged to fiat for payments and trading.

Ownership. Unique assets like NFTs, or fractional shares of real-world items.

Tokens and bunqbunq supports trading in major cryptocurrencies through bunq Crypto, including native coins and widely listed tokens, starting from as little as €1. For regulated, euro-denominated growth, pair crypto with a Savings Account.

Frequently asked questions

Are all altcoins tokens?Many altcoins are tokens on larger networks; others are native coins on their own chains. The label depends on architecture, not just popularity.

Can anyone create a token?

Yes, on programmable blockchains, which is why scam tokens exist. Verify projects, contracts, and liquidity before buying obscure tokens.

Do tokens have the same risks as Bitcoin?

Risk varies widely. Small or new tokens are often more volatile and less liquid than established assets. Research each token individually.