If you’re looking to make transactions with your ERC20 tokens, you should know how to transfer them safely. This is a crucial step to take if you want to ensure that your ERC20 tokens get where they need to go. Read on for more information!
What is an ERC20 token?
ERC20 tokens are the most widely used standard for Ethereum tokens. They have set rules that need to be followed by the token, and they are compatible with the Ethereum blockchain.
ERC20 tokens are fungible, which means that all ERC20 tokens will have the exact same qualities as other ERC20 tokens of the same kind (using the same contract address). For example, one THETA will always be worth the same amount as another THETA.
ERC20 tokens are a powerful and flexible standard for creating your own custom cryptocurrency. They’re not just currency—they can also represent company shares, loyalty points, gold certificates, or anything else of value that you want to tokenize.
How to transfer ERC20 tokens?
The most common way to transfer ERC-20 tokens is by using the “Send” function in your wallet or other token management apps. You can send a token to another wallet, or exchange.
To do this, follow these steps:
- Enter the password you’re using to log in to your wallet
- Choose your token in the Wallet tab.
- Enter the amount you want to send.
- Paste the receiving address (recipient wallet or exchange address)
- Select Send
Remember to fund your ETH account before sending or exchanging ERC-20 tokens. Every time you send an ERC-20 token, you have to pay a network fee in ETH—these fees are also referred as GAS.
In order to transfer ERC-20 tokens, you need to have a wallet that supports this token. There are plenty of wallets out there including cryptocurrency wallets, hardware wallets and software wallets.
How to avoid scams when transferring ERC20 tokens?
You don’t want to get scammed when you are sending ERC20 tokens, but the world of cryptocurrency can be a scary place.
Here are a few rules that you need to follow to stay safe on Ethereum:
- Be cautious: no matter how well-established a website or individual is, always do your own research before trusting them.
- Always keep your seed phrase (private key) a secret, and do not share it with anyone.
- Your address (public key) is the public identifier that people use to send you assets like ERC20 tokens. It’s derived from your own public/private key pair.
- Track your or someone else’s cryptocurrency transactions using Etherscan.
- Make sure that the address is correct and not a scam by checking whether it has been used before or not.
How to transfer your ERC20 tokens safely.
First, make sure that you’re using a legitimate wallet. Many wallets will allow you to hold ERC20 tokens, but it’s important to double-check that the wallet supports all of the tokens that you have before sending them anywhere.
Second, use an offline or hardware wallet for storing your tokens (or at least some of them). Hardware wallets are basically just USB sticks with special software installed on them that makes it impossible for hackers or other malicious actors to gain access to your funds stored there.
They are also much safer than online wallets because they aren’t connected directly to the internet and so cannot be hacked remotely by hackers who want access to your funds for nefarious purposes like stealing money from unsuspecting users who don’t know any better.
To summarize, when transferring ERC20 tokens
- Transfer only to a compatible wallet.
- Do not send funds to a recipient address that is unfamiliar, and especially if the address has been compromised.
- Make sure the tokens you’re sending are going to the correct address.
- Do not disclose your seed phrase (private key) to anyone.
By following the steps outlined, you can transfer ERC20 tokens safely. The key takeaway is to check that the address matches what you’re sending to, and double check before sending your funds.
If something goes wrong, contact the project team directly or use a tool like Etherscan to help resolve any issues.