Glossary
What are Token Tickers? Definition and Usage in Cryptocurrency
Token Ticker Definition
A token ticker is a concise symbol representing a cryptocurrency or token in trading environments. Examples include $BTC, $ETH, and $NEO. These symbols are typically in uppercase and range from three to five letters. Tickers aren’t unique, and nothing prevents two different tokens from using an existing one.
The symbols are chosen to be easily recognizable and memorable, allowing traders to identify and trade assets quickly. They are used in trading pairs to indicate the assets being exchanged.
Social media platforms, news outlets, and other sources also use tickers to refer to cryptocurrencies and tokens. For example, Bitcoin is often referred to as $BTC, and Ethereum as $ETH.
Token tickers are also referred to as the “token symbol”.
Token Tickers — Key Concepts
- Simplification: Tickers generally condense the representation of cryptocurrency and tokens.
- Not Unique: Tickers are not unique and can be used by multiple unrelated projects.
- Trading Pairs: Tickers are used in trading pairs to indicate the exchanged assets.
- Dollar Sign Prefix: Tickers are often prefixed with a dollar sign ($), making them easily recognizable.
- Wrapped Token Identification: Wrapped tokens are tokens from one blockchain represented on another. For example, Wrapped Bitcoin ($WBTC) is Bitcoin represented on the Ethereum blockchain.
Assignment of Token Tickers
Creators of tokens assign tickers based on factors like the official name, uniqueness, and ease of recognition. For example, Bitcoin is represented as $BTC, and Ethereum as $ETH.
At the code level, tickers are often represented using the symbol() method, which returns a token’s symbol. This value is automatically retrieved from the token’s smart contract.
If two tokens have the same ticker, exchanges, and platforms may use additional identifiers to differentiate them.
Neo Token Tickers
The Neo blockchain has two different networks. Both networks use the same token ticker, $NEO. Exchanges do not differentiate between the two networks, which can lead to confusion.
In this case, users must check for the deposit and withdrawal addresses to ensure they are using the correct network. Tokens using the A prefix are on the Neo Legacy network, while tokens using the N prefix are on the Neo N3 network. Visit the Account Address page for more information.
Tickers for Traders and Wallets
Traders use token tickers to identify and execute trades more efficiently. For instance, a trading pair like BTC/ETH indicates a trade converting Bitcoin to Ethereum. Wallets use the tickers to display the balance of different tokens in a user-friendly manner.
Some applications rely on the token’s smart contract to retrieve the ticker symbol. If two tokens have the same ticker, the wallet may display incorrect or misleading information.
Always verify the token’s contract address and network to ensure you deal with the correct asset. Fake tokens with identical tickers are used in scams to deceive users.
Tokens versus Blockchains
A token is not synonymous with a blockchain. Tokens can be created on existing blockchains using smart contracts. Networks may have multiple native tokens, each with its ticker.
Multiple Tickers in a Single Blockchain
Some blockchains support multiple native tokens, each with its ticker. For example, the Neo blockchain has two native tokens: $NEO and $GAS. $NEO is used to represent ownership of the blockchain and participate in decisions, while $GAS is used to pay for executing smart contracts and transactions.
Another example is the MakerDAO on Ethereum, which uses two distinct tokens: $MKR and $DAI. $MKR is used for system governance and stability, while $DAI is a stablecoin pegged to the US dollar.
Usage in Social Media and News
Social media platforms, news outlets, and other sources use dollar sign-prefixed tickers to refer to cryptocurrencies and tokens. For example, Bitcoin is often referred to as $BTC, and Ethereum as $ETH.
Like stock tickers, cryptocurrency tickers are used to track and discuss the performance of different assets. They are also used in hashtags, posts, and discussions to identify specific tokens.
Wrapped Tokens Tickers
Wrapped tokens can be used to represent tokens from one blockchain on another. The ticker is often a prefix or suffix added to the original token’s ticker to indicate the wrapped version. Wrapped Bitcoin ($WBTC) is Bitcoin represented on the Ethereum blockchain. $BTCB is Bitcoin represented on the Binance Smart Chain.
Wrapped tokens are used to enable cross-chain compatibility and decentralized finance (DeFi) applications. They allow users to interact with assets from different blockchains without leaving their native network.
