The invention discloses a working method of a dynamic token. The working method comprises the following steps: judging the type of the pressed key when an effective key is detected by the dynamic token, detecting whether a current starting-up mark is set when the pressed key is a power key, restoring if yes, otherwise, setting the key and checking whether a lock mark is set, logging in a decoding code input interface if yes, otherwise, logging in an information interface; deleting the data of the bottom end of a block buffer cache when the pressed key is a deletion key; storing corresponding data to the block buffer cache when the pressed key is a number key, and the dynamic token is unarranged at the information interface; judging whether the pressed time of the pressed key is longer than a predetermined time when the dynamic token is arranged at the information interface, logging in a power-on password correcting interface if yes, storing the corresponding data to the block buffer cache if not; judging whether the data in the block buffer cache is true or qualified when the pressed key is the enter key and the dynamic token is unarranged at the information interface, generating a dynamic password and displaying corresponding content when the dynamic token is arranged at the information interface.