ERC20 tokens are a type of cryptocurrency that run on the Ethereum blockchain. They are popular because they can represent various kinds of assets, such as utility tokens, governance tokens, stablecoins, and more. ERC20 tokens also follow a common standard that makes them compatible with many wallets and exchanges.
If you want to buy ERC20 tokens, you will need two things: an Ethereum wallet and some Ethereum (ETH) to swap for the tokens. In this article, we will explain how to get both and how to use them to buy ERC20 tokens on different platforms.
Step 1: Get an Ethereum Wallet
An Ethereum wallet is a software or hardware device that allows you to store, send, and receive ETH and ERC20 tokens. There are many types of Ethereum wallets, such as web wallets, mobile wallets, desktop wallets, hardware wallets, and paper wallets. Each one has its own advantages and disadvantages in terms of security, convenience, and functionality.
Some of the most popular Ethereum wallets are:
MetaMask: A web browser extension that lets you interact with Ethereum dApps and swap tokens on decentralized exchanges (DEXs).
Trust Wallet: A mobile app that supports multiple cryptocurrencies, including ETH and ERC20 tokens. It also has a built-in DEX and a browser for dApps.
Ledger Nano S/X: A hardware device that stores your private keys offline and connects to your computer or phone via USB or Bluetooth. It is one of the most secure ways to store your crypto assets.
imToken: Another mobile app that supports ETH and ERC20 tokens, as well as other blockchains like Bitcoin and EOS. It also has a DEX and a dApp browser.
When choosing a wallet, make sure it supports the ERC20 tokens you want to buy. You can check the list of supported tokens on the wallet’s website or app. Also, make sure you backup your wallet’s recovery phrase or seed phrase, which is a set of words that can restore your wallet if you lose access to it.
Step 2: Buy Ethereum (ETH)
Once you have an Ethereum wallet, you will need some ETH to swap for ERC20 tokens. ETH is the native currency of the Ethereum network and is used to pay for transaction fees (also known as gas fees) when sending or swapping tokens.
You can buy ETH from various platforms, such as:
Coinbase: A centralized exchange that allows you to buy ETH with fiat currency (such as USD or EUR) using a bank account, debit card, or credit card. Coinbase also has a wallet app that lets you store and swap your ETH and ERC20 tokens.
Binance: Another centralized exchange that offers a wide range of cryptocurrencies, including ETH and ERC20 tokens. You can buy ETH with fiat currency or other cryptocurrencies using various payment methods.
Uniswap: A decentralized exchange (DEX) that runs on the Ethereum blockchain and allows you to swap any ERC20 token for ETH or vice versa. You can connect your Ethereum wallet (such as MetaMask or Trust Wallet) to Uniswap and trade directly from your wallet.
PancakeSwap: A DEX that runs on the Binance Smart Chain (BSC), a blockchain that is compatible with Ethereum. You can swap BSC-based tokens for ETH or ERC20 tokens using PancakeSwap. You will need a BSC-compatible wallet (such as MetaMask or Trust Wallet) to use PancakeSwap.
When buying ETH from any platform, make sure you send it to your own Ethereum wallet address and not to an exchange address. Also, be aware of the transaction fees and the exchange rates before confirming your purchase.
Step 3: Swap ETH for ERC20 Tokens
Now that you have some ETH in your wallet, you can swap it for any ERC20 token you want. There are many platforms where you can do this, such as: