What are ERC20 tokens?
ERC20 token is a term that often comes up when discussing Ethereum smart contracts and Dapps. Considering the frequency in which these tokens are discussed, it’s important to get to know these a little better – which we’ll be going over in this article
What is an ERC20 token?
ERC20 means Ethereum Request for Comment, with the number “20” stands for its proposal identifier. An ERC20 token is any cryptocurrency or token that uses the Ethereum blockchain.
There are quite a lot of them! Because Ethereum was designed as a platform that other cryptocurrencies could build on. There are now hundreds of different cryptocurrencies or blockchain projects that are run on the Ethereum blockchain. And you could build your own, if you wanted to!
Simply put, an ERC20 token is designed as a blockchain-based asset as how Bitcoin or Ether is built for. The big difference is this ERC20 token is created on the Ethereum blockchain. It’s also hosted on the same blockchain. It is stored with an Ethereum address, and the same address applies for the transaction.
It’s hard to put into words the sheer impact that ERC 20 tokens have had on the crypto world. They are single-handedly responsible for several billion dollars within the industry, and they played a big role in making cryptocurrencies more mainstream.
Easy Crypto itself sells a range of ERC20 tokens including OmiseGo, Zilliqa, and Icon.
How much for Ether? Click here to check the latest rates for ETH.
Can I store ERC20 tokens in my Easy Crypto wallet?
Absolutely! Because ERC20 tokens use the Ethereum network, any ERC20 token can be safely stored in your Easy Crypto Wallet, just like Ethereum itself.
However, there is one catch, it’s called Gas.
How do I move ERC20 tokens out of my Easy Crypto wallet?
If there is an official wallet for your coin, then you should be able to “sweep” your private key into that wallet without requiring any gas. No gas is required because you are not moving your coins from one address to another, you’re just using that wallet to access the coins at the address they are already at.
Alternatively, you can use MyEtherWallet. Again, you don’t need gas to access your coins using MyEtherWallet.
However, you will need ETH for gas if you wish to send your coins to a new wallet address or to an exchange.
NOTE: the Easy Crypto wallet is no longer offered for new customers. If you have an existing Easy Crypto wallet, read on, otherwise please check out our wallet guides to setting up your own wallet.
What is GAS?
The Ethereum network has a fee (called “gas”) for every transaction made on the network. These fees are only charged if you are sending your cryptocurrency to a new address. If you are simply holding your cryptocurrency there is no fee.
If you want to move your ERC20 token from your Easy Crypto portfolio to another address, you will need to have enough Ethereum at your address to cover the “gas” for the transaction. The price of gas varies but is a very small amount, e.g. 0.0005 Ethereum.
Looking to buy ETH? Click here to start investing in Ethereum!
The future of Ethereum
This April 2021 the Ethereum Foundation has deployed the Berlin hard fork, the newest update to the network to improve the overall security, adjustment to gas fees, 4 new EIPs, and refinements to smart contracts – amongst others.
Learn more: Click here to learn about Ethereum Berlin hard fork.
The Berlin update is one of many updates on Ethereum’s roadmap to ETH 2.0, also known as Serenity – the final form of Ethereum.
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Last updated April 21st, 2021.