I have read the Django Rest Framework Guides and done all the tutorials. Everything seemed to make sense and work just how it should. I got basic and session authentication
In addition to the excellent answers here, I'd like to mention a better approach to token authentication: JSON Web Token Authentication. The implementation offered by http://getblimp.github.io/django-rest-framework-jwt/ is very easy to use.
The benefits are explained in more detail in this answer.