What is an ERC-20 token?
An ERC20 token is the most widely used type of cryptocurrency on the Ethereum blockchain. It follows a specific set of rules known as the ERC20 standard, which ensures that any token created using this standard can work seamlessly with digital wallets, exchanges, and applications that support Ethereum.
Many popular cryptocurrencies are ERC20 tokens, including USDT (Tether), USDC, Shiba Inu (SHIB), Chainlink (LINK), Polygon (MATIC), DAI, AAVE, and Uniswap (UNI).
Unlike ERC721 tokens (NFTs), where each token is unique and non-fungible, ERC20 tokens are fungible—each token is identical and interchangeable with another of the same kind. When creating an ERC20 token, you can specify a fixed or unlimited supply, depending on your goals. This flexibility makes ERC20 tokens popular for use as digital currency, reward points, utility tokens for apps or games, and more.
What Can I Do With My ERC-20 Token?
List it for Trading on a Crypto Exchange
After creating your ERC20 token, listing it on a decentralized exchange (DEX) — like Uniswap or Sushiswap — is a popular next step. This makes it easy for people to buy, sell, or swap your token using other cryptocurrencies, such as ETH or USDT.
This is especially useful if you want your token to be used as a form of payment, you're planning to fundraise or sell tokens to early supporters, you want to give your token real-world value based on supply and demand, or you want to increase visibility and attract a broader audience.
The process of listing on a DEX is surprisingly simple and doesn't require advanced technical knowledge. You'll typically just need your token's contract address, a connected crypto wallet (like MetaMask), and enough ETH to pay for the gas fees involved in creating the trading pair and adding liquidity.
Use it as a Digital Currency
Just like Bitcoin or Ethereum, you can send your token to friends, customers, or community members. It could represent value inside your app, website, or even your social media community.
You can build a website or application that accepts your cryptocurrency as payment for products and services, and to make it easy for people to get your token, you can make it available on decentralized exchanges like Uniswap so people buy it with other cryptocurrencies like ETH or USDT.
Your options are limited only by your imagination — and the legal and regulatory guidelines in your country.
Use it for Rewards
ERC20 tokens are perfect for rewarding people for actions — like signing up, making a purchase, completing a task, or inviting others to your platform. Instead of points or badges, you're giving them something real: a cryptocurrency that can be held, traded, or used later.
Use it in Apps or Games
Your token can act as in-app currency — allowing users to make purchases, unlock content, upgrade features, or participate in events. It's a great way to create a real economy inside your app or game.
Use it for Community Voting (Governance)
ERC20 tokens can also represent voting power. This lets your users or community members help shape the future of your project by voting on decisions, features, or updates — a concept known as “token-based governance.”
UNI, the token behind Uniswap, allows holders to vote on platform changes and proposals. You can build something similar for your own platform or project.
Raise Funds or Launch a Project
Instead of using traditional fundraising methods like bank loans or venture capital, you can use your ERC20 token to raise support from your community. You can offer tokens to early adopters, contributors, or backers — and as your project grows, those tokens may gain value or unlock benefits.
Filecoin raised over $250 million in its Initial Coin Offering (ICO) — $200 million of that in just the first 30 minutes. Early investors received Filecoin tokens for their support, and those tokens later became the core of its decentralized storage network.
Create a Brand, Cause, or Movement
Your token doesn't just have to be a tool — it can be a symbol of your mission, identity, or message. Whether it's for education, art, sustainability, or fun, your token can rally people around a shared idea or cause.
What Is a Smart Contract?
In simple terms, a smart contract is a self-executing piece of code that runs on the blockchain. But let’s break that down.
Think of a smart contract as the engine behind your cryptocurrency token — it's the program that defines how your token works and what it can do. This code is stored on the blockchain, meaning it runs automatically and can’t be changed once deployed.
When you create a token using our platform, what we’re actually doing behind the scenes is deploying a smart contract for you. This smart contract includes your token’s name, symbol, and features — and it contains built-in functions like:
mint() – to create more tokens
burn() – to destroy tokens
transfer() – to send tokens
and other optional features depending on what you select (e.g. pausing transfers, adding roles, enabling upgrades)
Your token is the output of this smart contract — it exists because the contract says it should.
And just like your token has a name, the smart contract itself also has an address and identity on the blockchain. You can interact with it using the same wallet you used to create the token — for example, to mint more tokens or manage permissions.
So when you use our platform, you're not just creating a token — you're launching your own custom smart contract, without needing to write a single line of code.