$ 19,126.16
$ 1,062.46
$ 1.00
$ 0.451278
$ 0.313693
$ 1.00

ERC-20 Tokens Explained – What is an ERC-20 Token?

ERC-20 Token Meaning

Bitcoin was the first cryptocurrency in the world, but Ethereum was the first cryptocurrency and blockchain that offered various decentralized services within its network. To make these services possible, the Ethereum network allows other tokens besides Ether to run within the network. These tokens are known as ERC-20 tokens. 

Similar to other coins, ERC-20 tokens can be traded within the network, which also entails profitability. However, ERC-20 tokens can also be used for running those other decentralized services in the Ethereum network, such as creating and launching Decentralized Applications (dApps), Decentralized Finance (DeFi), Decentralized Exchange (DEX), and many more.

Usually, ERC-20 tokens have a fixed supply. This is done for the purpose of avoiding price inflation. Nevertheless, most ERC-20 tokens have a large supply so that a shortage is not necessarily caused.  ERC-20 tokens are also fungible. Fungibility means that these tokens are the same as other tokens, meaning that the price of one ERC-20 token might have an equivalent utility of another ERC-20 token. However, ERC-20 tokens are not usually private, so if an ERC-20 token is used for illicit purposes, its value might not be the same as others.

Why Create ERC-20 Tokens In The First Place?

Ethereum network allowed people to create and launch their projects within the network. Many people were able to launch their own tokens in the network. However, the main problem was that the tokens launched by various users had trouble interacting with one another, despite all the dApps that could serve as media for these interactions. As such, the Ethereum network developed some rules through smart contracts, where any token released within the network would have to go through those rules. Therefore, these tokens were then known as ERC-20 tokens. 

ERC-20 tokens have removed some of the barriers of projects wanting to work with one another, so their creation has improved and changed blockchain technology once and for all. Other networks besides Ethereum have started integrating these same rules to have their own tokens. For instance, Binance blockchain uses BEP-20 tokens.

Some examples of ERC-20 tokens are EOS (EOS), Chainlink (LINK), OmiseGO (OMG), Zilliqa (ZIL), etc. 

Popular ERC-20 Tokens.

How To Buy ERC-20 Tokens?

A lot of ERC-20 tokens are available in cryptocurrency exchanges such as Coinbase or Binance. So you can directly buy ERC-20 tokens through these exchanges. Other ERC-20 tokens that are not yet very popular and are not supported yet by exchanges can be bought through MetaMask.

MetaMask wallet allows you to have access to various dApps in the Ethereum network and access decentralized exchanges for all ERC-20 tokens. You simply need to write the correct address of the token. To buy ERC-20 tokens through MetaMask, you need to have some ETH available. Keep in mind that gas fees require you to have more Ether than you anticipate to exchange. 

ERC-20 tokens can also be stored in cold wallets. The best cold wallets that support ERC-20 tokens are Ledger and Trezor.


  • ERC-20 tokens have removed some of the barriers of projects wanting to work with one another, so their creation has improved and changed blockchain technology once and for all.
  • Some examples of ERC-20 tokens that work in the Ethereum network are EOS (EOS), TRON (TRX), ICON (ICX), OmiseGO (OMG), Zilliqa (ZIL), etc.
  • You can directly buy some ERC-20 tokens through crypto exchanges.
  • The best cold wallets that support ERC-20 tokens are Ledger and Trezor.


Also read:

Related News

Is KuCoin Token a Good Investment – Should You Invest in KuCoin?

The cryptocurrency market saw one of the biggest bull runs in its history back in 2021. During this time, several tokens and cryptocurrencies made millionaires overnight. However, as the market grew, people began taking profits, leading to a market correction. In early 2022, the market was attempting to recover, but with everything that was happening around the world, it failed to do so.  One token that is performing well even during these

Read More »

How to Use Pacoca  – A Step-by-Step Guide

  Pacoca is a comprehensive DeFi hub where investors may monitor and invest in several initiatives. Since its inception, the platform has seen tremendous success, drawing a large number of daily investors who use it daily. Decentralized finance (DeFi) is the most profound change to ever occur in the financial markets, and it is expanding rapidly, with almost new protocols being released each day.  Although, there is still a severe

Read More »

Here are 3 Reasons Why You Should Use KuCoin Exchange to Buy Cryptocurrency

KuCoin is a global exchange for cryptocurrencies that started operating in 2017. The platform enables trading in futures and margin products using an extensive selection of tokens. In addition, KuCoin is an attractive cryptocurrency exchange due to its low fees and extensive feature set. KuCoin’s extensive features, low fees, and a wide variety of cryptocurrencies make it an ideal platform for experienced and even new cryptocurrency traders. However, KuCoin lacks an operating

Read More »

My Coins

$ 19,126.160.59%
$ 1,062.461.51%
$ 0.4512780.23%
$ 1.000.16%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy


Contact Us

For any question conatct us through:

Disclaimer: All information and materials on this website are for educational purposes only. does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: