These tokens are available for staking on major exchanges like eToro and Coinbase.
Ethereum has played a vital role in the rise of decentralized applications (dApps), largely because of its support for ERC-20 tokens. These tokens are essentially smart contracts deployed on the Ethereum mainnet representing various blockchain projects, each with its unique functions and purposes.
With Ethereum hosting over 350,000 ERC-20 tokens, it can be overwhelming to navigate through them all. However, some tokens stand out for their innovative solutions and potential for investment growth. Here’s Benzinga’s pick for the best ERC-20 tokens.
Top ERC-20 Tokens to Invest in 2024
If you're looking to diversify your portfolio in 2024, here are some of the top ERC-20 tokens worth considering.
1. Ethereum (ETH)
The primary platform for ERC-20 tokens, Ethereum (ETH) is a decentralized blockchain platform renowned for its smart contract functionality. Programmer Vitalik Buterin and other co-founders conceived the idea of Ethereum in 2013 and launched it in 2015. Ethereum birthed the concept of dApps and has since become a foundational layer for various blockchain projects. In 2022, the network transitioned to proof of stake (PoS), which significantly reduced its energy consumption and paved the way for future scalability improvements.
Ether (ETH) is Ethereum's native cryptocurrency and is second in market capitalization only to Bitcoin. Ethereum is expected to complete the Cancun upgrade in 2024, which aims to further enhance scalability through Proto-Danksharding. Ethereum's continuous innovation and central role in the blockchain ecosystem make it a compelling investment.
2. Tether (USDT)
Tether (USDT) is the largest and oldest U.S. dollar-pegged stablecoin in the cryptocurrency industry. It was initially launched in 2014 as RealCoin and later renamed to Tether. USDT is designed to maintain a 1:1 peg with the U.S. dollar, which ensures that it provides a stable medium of exchange and a safe haven from market volatility. It’s useful for conversion between fiat and crypto, not for investment. Despite some controversies surrounding its reserves in the past, Tether has remained a dominant force in the market, often ranking among the top three cryptocurrencies during bearish conditions. Its widespread adoption across various blockchain platforms and its role in facilitating transactions make USDT a key player in the crypto space and a strategic investment for those looking to hedge against volatility in 2024.
3. Chainlink (LINK)
Chainlink (LINK) is a decentralized oracle network that connects blockchain smart contracts with real-world data. It was created in 2017 by Sergey Nazarov and Steve Ellis. Its native token, LINK, is used for payment to node operators who retrieve, aggregate and deliver data to smart contracts. Chainlink enables reliable data integration with smart contracts, making it an essential component of decentralized finance (DeFi). Its blockchain-agnostic architecture allows it to serve multiple blockchain networks. It's a promising ERC-20 crypto to invest in 2024, with its widespread adoption and partnerships with various blockchain projects contributing to its strong investment appeal.
4. Uniswap (UNI)
Uniswap (UNI) is a decentralized exchange protocol on the Ethereum blockchain that was launched in November 2018. It uses an automated market maker system, relying on liquidity pools and algorithms to determine prices. Uniswap has gained attention for facilitating decentralized finance transactions and its token, UNI, is used for governance. UNI has an innovative AMM protocol, a strong community governance model and the ability to adapt and integrate new features while maintaining high security and decentralization. These features make it one of the best ERC-20 tokens to invest in 2024.
5. Basic Attention Token (BAT)
Basic Attention Token (BAT) is a digital advertising token based on the Ethereum network that aims to improve digital advertising efficiency and fairness using blockchain technology. It was launched by Brendan Eich and Brian Bondy in 2017.
BAT is integrated with the Brave browser as part of the Brave Rewards Program, compensating users for their attention and helping advertisers reach an engaged audience. BAT is expected to be a good investment because of its unique proposition in digital advertising, successful integration with the Brave browser and commitment to user privacy and fair compensation.
6. Manta Network (MANTA)
Manta Network is a blockchain project that prioritizes privacy for transactions and assets on the blockchain. It started with Manta Atlantic, a Polkadot parachain focused on zero-knowledge (ZK) compliance via zkSNARKs, which launched in 2021. In 2023, Manta Pacific arrived as an Ethereum Virtual Machine (EVM)-equivalent Layer 2 blockchain for Ethereum, providing a home for ZK applications. The network's Universal Circuits allow developers to easily incorporate ZK features into their applications, which is especially relevant for DeFi, Web3 identity verification and privacy-preserving gaming applications. Manta Network is a promising investment for those interested in supporting and benefiting from blockchain privacy advancements.
7. OmiseGo (OMG)
OmiseGo (OMG) is a decentralized exchange and payment platform built on the Ethereum blockchain. Founded in 2013, it launched the OmiseGo ICO in July 2017, raising $25 million. Its commitment to solving fundamental coordination problems among payment processors, gateways and financial institutions has positioned it as a significant player in the DeFi space. OmiseGo's robust platform, offering fiat-to-crypto transactions and decentralized exchange capabilities, will make it one of the best ERC-20 tokens to invest in. Its utility in facilitating seamless transactions across blockchains and widespread adoption contribute to its investment appeal.
8. AiDoge ($AI)
AiDoge ($AI) is a breakthrough cryptocurrency that blends meme culture with innovative AI technology. The project was launched in April 2023, and its unique platform offers an AI-powered meme-creation experience that adapts to the ever-changing crypto world. AiDoge has received widespread attention for using advanced AI algorithms trained on extensive meme datasets and crypto news to create high-quality, contextually relevant memes.
AiDoge's combination of AI and cryptocurrency has made it a popular ERC-20 crypto to invest in, with potential for growth and adoption among younger investors who appreciate both meme culture and technological innovation.
9. yPredict (YPRED)
YPRED is an ERC-20 token that powers an AI trading signal platform, providing predictions and forecasts for various cryptocurrencies. The platform offers a marketplace for AI developers to sell subscriptions to their predictive models, which offer trading signals to traders. With a capped supply, YPRED's demand is driven by the need to pay for subscriptions and staking, which offers up to 45% quarterly rewards. Its ability to process vast amounts of trading signal data gives traders a competitive edge, leading to a price increase because of its real-world utility and growing interest in AI-powered cryptocurrencies.
10. Launchpad (LPX)
Launchpad (LPX) is an ERC-20 token associated with Launchpad XYZ, a platform that aims to revolutionize Web 3.0 investments. LPX tokens grant access to premium features on the platform, such as ICO and NFT mint alerts and are used to cover transaction fees, particularly when investing in fractional assets.
LPX has strong fundamentals and innovative features and plays a critical role in democratizing the investment landscape of Web 3.0. It is a token worth considering because of its utility in a comprehensive ecosystem that includes a decentralized exchange for non-fungible tokens (NFTs) and a marketplace for fractionalized assets. LPX is positioned as a central hub for Web 3.0 technologies, and its value is expected to grow as the platform aims to onboard more users to Web 3.0.
What Are ERC-20 Tokens?
ERC-20 tokens are a type of digital asset on the Ethereum blockchain, following a specific set of standards called ERC-20. This standard ensures predictability across the Ethereum network, making them interoperable with other ERC-20-compliant tokens and services. The tokens can represent various assets like shares in a company or points in a loyalty program and are used as a form of currency within dApps on Ethereum. They facilitate transactions and interactions, including payments and voting rights and allow for the creation of easily exchangeable tokens within the Ethereum ecosystem.
Why Invest in ERC-20 Coins?
ERC-20 tokens are a popular investment option because of their standardized format, which makes them easily compatible with various Ethereum-based services and wallets. Built on the Ethereum blockchain, these tokens benefit from robust security measures, reducing the risk of fraud and hacks. ERC-20 tokens offer flexibility, from representing assets to facilitating transactions. Widely traded, they provide high liquidity, making it easy for investors to buy or sell in the market. These tokens are often part of cutting-edge projects in finance, gaming and other industries, contributing to innovation within the blockchain ecosystem. Additionally, they are user-friendly, making them accessible to both seasoned investors and those new to cryptocurrency.
How to Buy ERC-20 Cryptos
If you're interested in buying ERC-20 tokens, here's a simplified guide to help you get started.
- Set up a digital wallet: You first need a digital wallet that supports ERC-20 tokens. Popular options include MetaMask and Trust Wallet.
- Purchase Ethereum (ETH): ERC-20 tokens require Ethereum for transactions. You can buy ETH from cryptocurrency exchanges such as Coinbase or Binance.
- Choose a decentralized exchange: You can use platforms like Uniswap or SushiSwap to exchange ETH for various ERC-20 tokens.
- Connect your wallet to the DEX: Access the DEX through your wallet's browser or directly on their website and connect your wallet.
- Trade ETH for ERC-20 tokens: Select the token you want to buy and trade your ETH for it. Make sure you have enough ETH to cover the transaction fees.
- Confirm and complete the transaction: Review the transaction details, confirm the trade and wait for it to be processed on the blockchain.
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
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How to Store ERC-20 Tokens Safely
When choosing a wallet, consider security, user-friendliness and additional features like staking or in-app trading. Some popular options include:
- Ledger: Known for its security, Ledger provides cold storage via hardware devices. It keeps private keys offline, allowing you to HODL (hold) your tokens securely.
- Trust Wallet: Compatible with all ERC-20 tokens, Trust Wallet allows for fee-free staking and token swaps. It also supports ERC-20 dApps.
- MetaMask: A popular non-custodial wallet available as an app and browser extension. It supports all ERC-20 tokens and offers staking and token swaps within the wallet.
- Coinbase Wallet: A decentralized wallet for iOS and Android users that supports custom tokens on various networks, including all ERC-20 tokens. It can be used anonymously without a Coinbase account.
Grow Your Portfolio with Top ERC-20 Tokens
Explore the thriving Ethereum ecosystem with these top ERC-20 tokens for 2024. From DeFi leaders to privacy-centric networks, these tokens provide unique opportunities for investors seeking to diversify and take advantage of the blossoming technology market. They present innovation, utility and growth potential, making them compelling options for your investment portfolio.
Frequently Asked Questions
Can you make money from ERC-20 tokens?
Yes, you can make money from ERC-20 tokens through trading, investing or participating in network activities that offer rewards.
Which coins are ERC-20 tokens?
Some well-known ERC-20 tokens include Ethereum (ETH), USD Coin (USDC), Tether (USDT), Binance USD (BUSD) and Chainlink (LINK).
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About Anna Yen
Anna Yen, CFA is an expert crypto writer with over two decades of professional finance and writing experience in roles within JPMorgan and UBS derivatives, asset management, crypto, and Family Money Map. She specializes in writing about alternative investment topics ranging from derivatives to cryptocurrencies. Her work has been published on sites like the crypto exchange Bybit. After six years of personal experience investing in crypto, she prefers BTC, ETH, and SOL.