What Is a Crypto Token?

START HERE · BEGINNER GUIDE 05

A token is a digital asset created on an existing blockchain. Griff Coin gives us a real example to look at.

About a 2–3 minute read

Coin or token?

A coin is native to its own blockchain. A token is created using an existing blockchain.

COINSOL is the native coin of Solana.

TOKENGRIFF is a token created on Solana.

People often use the word “coin” casually for both, but technically they are not the same.

A token has rules and information

When a token is created, information such as its supply and decimal precision matters. It also has an identifying address — on Solana this is commonly called the mint address.

The mint address is far more useful for identifying a token than its name or logo.

Supply and decimals

A token can have a fixed or changeable supply depending on how it was created. Decimals determine how finely units can be divided.

TOKEN

→

SUPPLY

DECIMALS

MINT ADDRESS

These are technical properties. They do not by themselves tell you what a token is worth.

A real example: GRIFF

Griff Coin has a supply of 1,000,000,000 GRIFF, uses 6 decimals, and its mint authority has been disabled. Its official Solana mint address is published on the Griff Coin website.

WHAT I LEARNED BUILDING GRIFF COIN

I learned quickly that creating a token is only one part of the picture. A token can exist on-chain without automatically having liquidity, a useful market or even discoverability in wallets and trackers.

Names and logos can be copied

Anyone seeing a token called GRIFF should not rely on the name or artwork alone.

Always verify: check the official mint address before interacting with a token. A matching name, ticker or logo does not prove it is the same asset.

You’ve learned the basics

That is enough for now. Pick another short guide when you are ready.

HOW DO YOU BUY, SELL & SWAP CRYPTO? →Next beginner guide LIQUIDITY, MARKET CAP & PRICE →Start Here guide HOW TO STAY SAFE IN CRYPTO →Start Here guide

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