If you are a fan of cryptocurrency, you might want to have a touch on tokens - one of the most advanced methods of crowdfunding and investment these days. Since most new tokens are Ethereum-based ICOs, this article will guide you through ways to get your feet wet in the world of Ethereum tokens.
Before we start, it’s crucial that you understand several key points about a token: what it is, what it does and what to expect before getting one.
Most Ethereum tokens are based on the ERC-20 standard, which contains rules and guidelines that make tokens function well. However, there are also other standards such as ERC-223, ERC-721, and ERC-777, which fulfill the existing flaws in the ERC-20 standard.
Buy Ethereum tokens with Ether
It is not possible to buy Ethereum tokens directly with fiat currency. They can only be exchanged using Ether.
You must also note that since Ethereum tokens only exist within the Ethereum network, you can only use Ether to exchange for Ethereum tokens. However, you can exchange other coins such as Bitcoin or Ripple into Ether before purchasing Ethereum tokens.
Ether can be purchased by using other cryptocurrencies or with fiat currency on multiple cryptocurrency exchange services. You can then buy or sell tokens directly on exchanges that support tokens trading.
An alternative option is to use decentralized exchange platforms. A decentralized exchange (DEX) is a cryptocurrency exchange that operates without a central authority such as banks or brokers. Exchanges are engaged in the blockchain and on a distributed ledger, which can provide greater anonymity and security as well as allow users to be in full control of their funds.
There are currently many decentralized exchange platforms on the market. However, DEXes with a built-in Ethereum wallet like HB Wallet would let you have an easier time making exchanges and manage your funds all in one place.
Receive Ethereum tokens for free through airdrops
There’s always a better option than buying something with your own money, and that’s receiving something FOR FREE.
That’s right. Free Ethereum tokens can sometimes be acquired during airdrops, which is a process where a crypto company distributes their tokens directly to participants free of charge.
Ahead of airdrop events, you may want to stay alert and get notified by signing up for online channels that provide updates about new airdrops. These include websites, Twitter accounts, Telegram groups, as well as online cryptocurrency airdrop forums.
To store the tokens received from airdrops, you need a cryptocurrency wallet that is compatible with the type of token distributed. HB Wallet is an example of Ethereum wallet that supports ERC-20 and ERC-223 tokens, which can let you receive airdrops with its desktop and mobile app versions.