# Blockchain Tokens

*What are the several types of blockchains tokens?*

By [PinaDeFi](https://paragraph.com/@pinadefi) · 2022-12-17

blockchain, tokens, cryptocurrency, nft's, defi

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Learn all about the different types of tokens with their features and examples:

1.  **Utility Tokens**
    

Tokens that represent a value on the blockchain giving access to a specific product or service. Example is the BNB token, which is the native currency of Binance network.

**2\. Security Tokens**

Securitized crypto that represents the value of an equity and can be traded under a financial regulation as security. Example is the Sia Funds (SF) which is the native currency of Sia Foundation.

**3\. Payment Tokens**

Tokens that are used for buying and selling a goods and services. A great example is Bitcoin which is used easily via lightning network for payments.

**4\. Exchange Tokens**

Tokens that are created by the crypto exchanges to be used across their platform. Binance is using BNB and BUSD or buying and selling and swapping tokens in their platform.

**5\. DeFi Tokens**

Tokens that is used as a part of a Decentralized Finance (DeFi) ecosystem. An example is the native cryptocurrency of [AAVE](https://aave.com/) protocol (AAVE coin)

6\. **Non-fungible Tokens**

Digital representation of anything that has value. This can be a ticket, title deed or digital art. [Opensea.io](http://Opensea.io) is the platform that is leading the market

**7\. Asset backed Tokens**

Tokens that their value is backed by real-world assets such as commodities or fiat currencies. An example is the PAX Gold (PAXG) which is backed by physical gold.

8\. **Algorithmic Tokens**

Tokens that their value and supply is determined by an algorithm to be stable. This tokens are the most debatable due to terra ecosystem, the [greatest failure](https://www.coindesk.com/learn/the-fall-of-terra-a-timeline-of-the-meteoric-rise-and-crash-of-ust-and-luna/). Ampleforth is a coin that the value is determined algorithmically.

9\. **Privacy Tokens**

Tokens that are used to hide any information about the person that is using it. [Monero](https://www.getmonero.org/) is the coin that is leading the space.

**10\. Governance Tokens**

Tokens that are used to offer people the ability to participate and vote on a specific project. [MakerDAO](https://makerdao.com/) native token MKR is used to govern the ecosystem

There are some more types of tokens but in my opinion this is the most important one’s. If I missed something important do not hesitate to comment!

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*Originally published on [PinaDeFi](https://paragraph.com/@pinadefi/blockchain-tokens)*