What does token mean? How to trade token
Tokens are digital assets issued based on existing blockchains, representing various types of equity and can be traded through centralized platforms (CEX) or decentralized platforms (DEX). 1. CEX transactions require registration and certification, recharge assets, place orders and manage assets; 2. DEX transactions require preparation of personal accounts, connecting to the platform, redemption and waiting for the blockchain to confirm and complete the transaction.
Tokens, commonly known as "tokens" or "tokens", are digital assets issued based on existing blockchain networks such as Ethereum . Unlike "coins" such as Bitcoin or Ethereum that have their own independent main network, Tokens are more like "applications" running on a built-in "operating system". It can represent various interests and values, such as shares of a company, voting rights for projects, right to use services, or some kind of digital commodity.
Mainstream virtual currency exchanges in 2025:
Binance:
Ou Yi :
Huobi:
How to trade tokens
Token transactions are mainly conducted through two types of platforms: centralized platform and decentralized platform.
Centralized Platform (CEX)
This is a platform similar to traditional stock exchanges. Users need to register an account and complete identity authentication first, and then recharge funds or digital assets into the account assigned to you by the platform for transactions. The entire process is matched and settled by the platform as the central intermediary agency.
Step 1: Registration and Certification
Choose a reliable platform, create an account and complete authentication as required (commonly known as KYC).
Step 2: Recharge assets
Transfer fiat currency (such as US dollars, euros) or other digital assets (such as BTC, ETH) to your account on the platform as the principal of the transaction.
Step 3: Conduct a transaction
In the trading market of the platform, find the Token trading pair you want to trade, such as TOKEN/USDT. You can then buy or sell a token by placing a market order (trading at the current market best price) or a limit order (specifying a price waiting for the transaction).
Step 4: Manage assets
After the transaction is completed, the purchased token will be stored in your platform account. You can choose to keep it on the platform, or withdraw it to your own personal digital asset account for custody.
Decentralized Platform (DEX)
Decentralized platforms do not rely on central servers or institutions to host user assets and match transactions. It allows users to conduct peer-to-peer transactions directly from their personal accounts through smart contracts deployed on the blockchain. The assets are always controlled by the user.
Step 1: Prepare a personal account
You need a compatible personal digital asset account. The control of this account is entirely in your hands.
Step 2: Connect to the platform
Visit a DEX website and authorize it to connect to your personal account. This process is just to establish a connection and the platform cannot use your assets.
Step 3: Redeem (Swap)
On the DEX interface, select the token you want to sell and the token you want to buy. The platform will automatically calculate the redemption rate through an algorithm (usually an automatic market maker AMM model). After confirmation, you need to authorize and confirm the transaction in your account.
Step 4: Transaction Complete
After the transaction request is confirmed by the blockchain network, the smart contract will automatically perform asset exchange. The token you sell will be transferred from your account, and the token you buy will be transferred to your account, without the intervention of a third party in the whole process.
The above is the detailed content of What does token mean? How to trade token. For more information, please follow other related articles on the PHP Chinese website!

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