Digital tokens are cryptographic tokens issued on a blockchain that can represent ownership or access rights to a digital asset or a utility within a specific ecosystem. They are classified into various types, such as cryptocurrencies (e.g., Bitcoin, Ethereum), security tokens (representing ownership in an asset), utility tokens (providing access to a service), and non-fungible tokens (NFTs) that allow ownership of unique digital items. Digital tokens enable decentralized transactions, enhance liquidity, and can be traded on various cryptocurrency exchanges.