What are ERC20 tokens?
First, we need to understand that ERC-20 is not a technology or software. Ethereum has a set of standards called ERC-20 that allows everyone to create their own tokens. The difference between ERC-20 compliant tokens and other cryptocurrencies such as Bitcoin, Monero, Dash is that ERC-20 tokens are built on the Ethereum Blockchain. For more info, you can check our article to learn about differences between Bitcoin and Ethereum.
Before the ERC20 standard, in late 2017 when the cryptocurrency market was exploded by ICO startups implemented on the Ethereum Smart Contracts, every ICO project was re-inventing the wheel by developing their own cryptocurrencies using basic functions. Since they didn’t follow any standard for transferring tokens between Token 1 and Token 2, they would need to check the whole interface of each contract to meet the requirements to perform any operation.
ERC20 standards were implemented by the Ethereum team to have the same arguments and functions. All ERC-20 based tokens must contain the functions and properties including transferring tokens with the total supply amount, ticker name, decimals, and inquiring the balance of the tokens at a certain address. If you skip any of the required functions, it means your ERC-20 token does not meet the standard.
How to send ERC-20 tokens?
When you transfer any ERC-20 token, actually you are calling the token contract function that tells a transfer operation should be executed. For every transfer of ERC-20 token, the Ethereum Blockchain will require a fraction of Ether, called Gas. It also means you can not send any ERC-20 token if you don’t have or have a low amount of Ethereum balance. You can use any of the popular platforms that work with Ethereum Blockchain and has wallet/account features, such as Metamask, MyEtherWallet.
Are there any hardware wallets to store ERC-20 tokens?
The Ledger Nano S, Blue, Nano X hardware wallets support and are compatible with ERC-20 tokens.
How to create your own ERC-20 token?
There are many tutorials and articles about creating your own ERC-20 token that was published on the internet. We want to share you with one of the articles that provide step-by-step instructions about how to create your own ERC-20 token that meets the basic ERC20 token standards. Kindly check this ERC20 token deployment article published on Medium.
Where to list your own ERC-20 token?
Actually, it is hard to list your own ERC-20 token in popular exchanges, but you can try to start listing your token in less popular exchanges with a lower trade volume. After you define your token price based on trades and have a trade history, it can be added to Coinmarketcap. After you can try to send a request to list your coin in more popular exchanges. On the other hand, the token owners create their own exchange or buy a cryptocurrency exchange script on the market.
How to list your own token with Exbita?
Exbita is an ERC-20 Exchange Script and supports all ERC-20 tokens. Our cryptocurrency exchange script allows you to list your own token and trade with other cryptocurrencies. Please check this video about how you can list your own token with Exbita.
Now you know what is an ERC-20 token and how it works. Thank you for the time to read this article about the ERC-20 token. If you have planned to create your own token, and you don’t know where to list it or even want to create your own cryptocurrency exchange feel free to check our cryptocurrency exchange script.
For more general info about cryptocurrency read our mechanics-of-cryptocurrency article.