Cryptocurrencies are assets that have proven to be profitable when invested in them. They have experienced special growth and attention in 2021 with their institutionalization, thus increasing their reputation. ERC-20 tokens have also been shown to be tokens that can bring huge profits if invested in them. Before we move on to the top 5 most popular ERC-20 tokens, let’s see what are ERC-20 tokens?
What are ERC-20 Tokens?
ERC-20 stands for “Ethereum Request for Comment”, and the number 20 is merely a random number the founders picked to symbolize this coin. ERC-20 was established in 2015 by Ethereum developers. ERC-20 scripting standard is used within the Ethereum blockchain. ERC-20 provides Ethereum with a set of standards or regulations that must be followed by every token or smart contract in order to be deployed on the Ethereum network.
In other words, every token or smart contract that has been developed on the Ethereum network must have followed the ERC-20 guidelines provided by ERC-20. There are many tokens being developed that conform to the ERC-20 standard, as a result, we can see that every day a new coin is made public; as a result of this trend, there are approximately 550 ERC-20 Ethereum network-based tokens in the market which is a large number of tokens, and the majority of them are having huge success with a gaining price.
There are several ERC-20 tokens available, however, we will focus on some of the most popular ones at the moment.
- Chainlink (LINK)
Chainlink, also known as the Link token, is a decentralized blockchain oracle established in June 2017 by Sergey Nazarov, Steve Ellis, and Ari Juels on the Ethereum network. Chainlink is an ERC-20 token with the extra feature “Transfer and call,” which gives the token the designation ERC-223. This functionality enables tokens to be received and processed by smart contracts in a single transaction. The trading value produced from Chainlink and other similar tokens is used to finance the Node operators who are in charge of fetching data from smart contracts as well as deposits made placed by node operators. The Chainlink team is also highly active on social media; this is a quality you should look for in any token since it demonstrates the team’s and developers’ devotion and hard work they are dedicating to the token.
- Enjin Coin (ENJ)
In comparison to Chainlink, Enjin Coin is a video gaming platform that is primarily based on NFT tokens. This means that it allows players all over the world to own digitalized in-game items in various games and allows them to trade them both within and outside of the game in which they own the items. Enjin was created in 2009 by two gaming enthusiasts, Maxim Blagov and Witek Radomski. They both made the Enjin token highly attractive for gamers by providing them with many different options to earn tokens while playing different games on various platforms such as mobile, pc, and so on. These features Enjin offers for the gamers have attracted their attention, making the coin popular and in this way affecting its price where we can see that it has gained a significant price since the beginning of this year standing at $2.02 at the time of writing which is a high price compared to the January’s price which was $0.31.
- OmiseGo (OMG)
OmiseGo token, also known as OMG, is a token deployed on the Ethereum blockchain that is completely compatible with the ERC-20. OmiseGo is a widely utilized company that has been around for a long time and handles payments in Asia, and it has recently integrated the OMG network token. OmiseGo promises to solve a number of scalability issues that are currently present in Etherum. These solutions include quicker transaction times, lower gas costs, and lower fees to the largest Smart Contract platform. The major advantage of OMG is its speed, which, in comparison to Etherum blockchain, is considerably faster. Etherum presently has a TPS of 30. (Transaction Per Second), On the other hand, the OMG token stands at 4000 TPS which is significantly larger than Ethereum
- Maker (MKR)
Maker (MKR) was one of the first ERC-20 tokens to be used on the Ethereum network. Maker developers have devised a brilliant way for lending and borrowing Cryptocurrencies without requiring a credit check, Maker also uses two currencies to control the value of loans: MKR and DAI. MakerDAO developers with Rune Christensen being the head of the developers’ team first implemented the maker(MKR) token in 2017, and from the beginning, they had the vision to combines smart contracts with a pegged stable coin to complete the task of lending or borrowing money, and this idea is going good by now as we can see that this coin is getting peoples attention. According to Coinmarketcap, the price of Maker (MKR) currently stands at $3,538, up from a low of 641.2 USD at the start of the year, indicating the growing popularity of this currency.
- Aave (AAVE)
Next, we have the well-known token AAVE, which is likewise an ERC-20 token based on the Ethereum blockchain. Aave is attempting to introduce something new to the Cryptocurrency industry by utilizing smart contracts as a mechanism for automatically managing loans. Aave is essentially a digitalized Crypto bank where Etherum users may take out loans or earn passive income. Some people confuse AAVE with real-world banks; nevertheless, there is a significant difference between the two. Unlike actual banks, AAVE is fully decentralized, and it is not controlled by the bank or the government, but only by its users. This feature has increased Aave’s appeal, and we can see that the price at the start of the year was $53.41, and today it stands at $381 which proves a significant gain on the price for a short period of time.
Where to Buy ERC-20 Tokens?
To begin purchasing ERC-20 tokens, you need first purchase BNB coins from a reputable trading platform such as Binance, Coinbase, or others. Next, send your BNB to your Metamask wallet, and then convert the BNB to ERC-20 tokens on any online platform you choose, such as Cryptoswitch, 1inch.io, and so on. And after completing these steps successfully, you own ERC-20 tokens which as we discussed above are very profitable assets to possess. This process of buying ERC-20 tokens is often complicated for some traders, mostly beginners, but there are plenty of articles and guides online where you can learn how to buy and possess ERC-20 tokens.
Where to Store Your ERC-20 Tokens?
After you’ve followed all of the requirements and successfully purchased the tokens, you’ll need to locate a safe location to put your tokens. There are several platforms available online to assist you in keeping your tokens secure, but you should be wary of scam sites, which tend to steal your money and information. Coin.space is a great place to store your tokens. These tokens can be maintained either online or physically; it is up to you to decide which one you trust more. If you want to retain your tokens physically, you can look into hardware wallets like the Ledger Nano S, but if you want to store them online (which we highly suggest), you can look at Atomic, Trust, and other platforms.
After finishing this article, we can conclude that ERC-20 tokens have a bright future and will be the next big thing in the next years. Every ERC-20 token attempts to tackle various Ethereum issues that arise often, such as speed, scalability, and so on. These issues are being solved in a very intelligent manner with smart contracts as the primary assisting tool, as well as other assets such as stable coins, and so on, so if you’re not sure whether to invest in these ERC-20 tokens or not, we recommend that you do so now or wait for the next dip which can come anytime because every token using the ERC-20 standard had a large increase in price this year, and most experts anticipate that it will rise even more this year, reaching an all-time high price.