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Alameda Research’s Worldcoin Investment Hits All-Time High, Exceeding $50M As WLD Price Climbs

Worldcoin, the digital identity token ERC-20 project on the Ethereum (ETH) blockchain, has garnered significant attention. Its native token, WLD, emerges as the top performer among the top 100 cryptocurrencies by market capitalization. 

The token has experienced a remarkable 31% uptrend in just 24 hours and a staggering 217% surge over the past fourteen days. This surge not only marks a new all-time high for WLD but also positively impacts Alameda Research, the now-bankrupt trading arm of the defunct FTX exchange, which holds a substantial stake in Worldcoin.

Alameda Research’s Stake In Worldcoin Reaches $186 Million

According to on-chain data, Alameda Research, a cryptocurrency trading firm co-founded by Sam Bankman-Fried and Tara Mac Aulay in 2017, has witnessed a surge in its Worldcoin holdings. 

As WLD reached a new all-time high of $7.9788 on Monday, the trading firm’s investment in the project surged by $50 million, reaching a new record. Currently, Alameda Research holds 25 million WLD tokens, valued at $186 million, representing 33% of their total portfolio. 

Worldcoin

This portfolio also includes other digital assets such as Bitcoin (BTC), BitDAO (BIT), Ethereum (ETH), Stargate Finance (STG), and the FTX token FTT.

Whale Activity And AI Hype Drive WLD’s Price Surge

Analysts such as Zameer Attar attribute the WLD price spike to strong whale activity, with one notable whale wallet withdrawing 2.09 million WLD tokens ($5.82 million) from Binance.

This withdrawal caused a 25% surge in the price of Worldcoin, resulting in the whale’s holdings reaching an impressive $8.03 million. Additionally, the launch of OpenAI Sora by Sam Altman, one of the founders of Worldcoin, has triggered bullish action in WLD tokens. 

Interestingly, Sora can create videos of up to 60 seconds with highly detailed scenes, complex camera movements, and multiple characters with emotions, which surrounding the hype of artificial intelligence (AI) has spurred investor interest, leading to more bullish sentiment surrounding WLD.

Worldcoin, founded by Sam Altman, Alex Blania, and Max Novendstern, aims to revolutionize the global identity and financial network by creating a public utility known as World ID. 

This privacy-preserving identity network enables users to verify their humanness online while maintaining their privacy through zero-knowledge proofs. The project has garnered significant funding, raising over $250 million across various funding rounds from investors, including a16z, Khosla Ventures, Bain Capital Crypto, Blockchain Capital, and Tiger Global.

The combination of whale activity and positive market sentiment surrounding AI technologies has contributed to the considerable surge in Worldcoin’s price.

Worldcoin

Featured image from Shutterstock, chart from TradingView.com 

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ERC-404 Sector Plunges: Market Capitalization Drops By 29% In 24 Hours

Surprisingly, the newly introduced Ethereum (ETH) token standard, ERC-404, made an impressive debut in the crypto market, outperforming many other digital assets. 

However, as Bitcoin (BTC), the dominant cryptocurrency, began to rally, investors swiftly shifted their focus to the king of crypto. Consequently, this shift led to notable price drops and market capitalization declines across the ERC-404 ecosystem and its associated tokens.

From Skyrocketing Surges To Sharp Corrections

According to data from CoinGecko, the ERC-404 sector has experienced a significant decline, with an overall market capitalization drop of 29% in the past 24 hours. 

Key tokens within this sector, including PANDORA, DeFrogs, RUG, Froggy Friends, and Crystal, have all witnessed substantial price decreases. PANDORA, which had garnered attention and speculation, surged by a staggering 12,000% within a week. 

Opening at $250 on February 3, 2024, its value skyrocketed to over $34,000 per token by February 9, 2024. However, it dropped by 38% from its all-time high (ATH) in just 24 hours.

ERC-404

On the other hand, Crystal suffered the most significant losses, with its price plummeting by 28.4% and trading volume declining by over 35%. These figures indicate a stark decline in market activity for the token. Currently, Crystal is down more than 51% from its ATH of $792.74, exemplifying the inherent volatility of the ERC-404 sector.

Following closely behind, Froggy Friends experienced a 16% drop in trading volume and an 81% decrease in price from its peak of $823. CoinGecko data reveals that Froggy Friends currently trades at $150 per token.

But what are the ERC-404 token standards? And what is causing the price and market capitalization to drop?

Navigating The ERC-404 Ecosystem

Ethereum, known for its smart contract platform, has been a breeding ground for various token standards. While ERC-20 and ERC-721 gained widespread adoption for fungible and non-fungible tokens (NFTs), a new contender emerged: ERC-404. 

Named after the popular website error code “404,” ERC-404 introduces the concept of “semi-fungibility” to Ethereum. It combines the divisibility of ERC-20 tokens with the uniqueness of ERC-721 tokens, bridging the gap between these two types.

ERC-404 tokens are associated with specific NFTs, allowing fractional transfers of linked NFTs. Full ownership results in minting the linked NFT to the holder’s wallet, while fractional transfers trigger the burning of the associated NFT. New NFTs are automatically minted when sufficient fractions are accumulated to form a complete token.

DN-404 Prepares To Challenge ERC-404’s Dominance? 

According to a recent report by The Block, transaction fees increased as ERC-404 tokens gained traction, prompting developers to work on an alternative implementation called Divisible NFT (DN-404). 

This new standard aims to optimize code and reduce transaction fees, addressing the rising costs associated with ERC-404 tokens. The DN-404 implementation is set to be released soon, potentially alleviating network congestion caused by the influx of ERC-404 tokens.

While there were initial discussions between the Pandora team, the creators of ERC-404, and the developers working on DN-404, the two groups did not reach an agreement and are not collaborating, according to the report. 

This introduces uncertainty for traders and investors who navigate between supporting the original ERC-404 or the upcoming DN-404 implementation.

Overall, the introduction of ERC-404 brought excitement and volatility to the crypto market. While semi-fungibility and fractional transfers of linked NFTs hold promise, challenges such as rising transaction fees and the emergence of DN-404 have impacted the ERC-404 ecosystem. 

Traders and investors now face the dilemma of choosing between the original implementation and the upcoming alternative. As the market evolves, it will be interesting to see how the ERC-404 sector adapts and whether it can regain stability and investor confidence.

ERC-404

Featured image from Shutterstock, chart from TradingView.com 

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How to Buy, Sell, and Trade ERC-20 Tokens on the Ethereum Network

[toc]

The Ethereum network stands as a revolutionary innovation in the realm of blockchain technology. It serves as a robust platform for building and deploying decentralized applications (dApps), fueling the growth of decentralized finance (DeFi) and transforming the way we interact with financial services. However, with its widespread adoption and increasing popularity, Ethereum has faced challenges of scalability and high transaction fees, leading to the development of Layer 2 scaling solutions to enhance its capabilities.

The Ethereum blockchain hums with innovation, birthing a new breed of digital assets known as ERC-20 tokens. These versatile gems unlock a treasure trove of possibilities, from voting rights in decentralized communities to fueling innovative applications and even representing virtual currencies. 

ERC-20 tokens are standardized building blocks on the Ethereum network. They adhere to a specific set of rules, ensuring seamless interaction and divisibility, making them perfect for trading and diverse applications. Think of them as digital coins, each with its unique identity and purpose, ready to be exchanged, used, and explored.

Whether you’re a seasoned crypto trader or a curious newcomer, navigating the thrilling world of ERC-20 trading can be challenging. This comprehensive guide will equip you with the knowledge and tools to confidently buy, sell, and trade these digital assets on the Ethereum network. 

Some of the major and popular ERC-20 Tokens are Tether (USDT), Polygon (MATIC), Chainlink (LINK), Uniswap (UNI), Lido DAO (LIDO), Maker DAO (MKR), amongst many others. 

Features of Ethereum Network

Ethereum’s innovative design sets it apart from other networks, paving the way for a decentralized future of finance, applications, and beyond. Distinguished by its unique features and capabilities, it stands as one of the pioneers of Blockchain Technologies with standout features like: 

The Power of Smart Contracts

The Ethereum Virtual Machine (EVM) serves as the core engine that drives the execution of smart contracts on the Ethereum network. These smart contracts are self-executing code that automates various actions and agreements, forming the foundation of dApps and DeFi protocols. EVM compatibility is crucial for deploying and interacting with ERC-20 tokens, the most common token standard on Ethereum.

Unlike static databases, Ethereum boasts the groundbreaking ability to execute self-enforcing agreements through smart contracts. These programmable pieces of code automate a wide range of tasks, enabling trustless interactions and the creation of innovative applications in diverse sectors.

Layer 1 and Layer 2: Addressing Scalability

The Ethereum mainnet functions as a Layer 1 blockchain, the base layer where all transactions are ultimately settled. To address the scalability bottlenecks on this primary layer, Layer 2 solutions have emerged as a promising approach. These solutions aim to offload a significant portion of transaction processing off-chain, resulting in increased throughput, faster confirmation times, and significantly reduced transaction costs.

A Platform For Innovation

Ethereum isn’t just a cryptocurrency platform; it’s a fertile ground for developers to build revolutionary decentralized applications (dApps). From DeFi protocols automating financial transactions to NFTs unlocking new ownership models, the possibilities are endless.

Gas and Gas Fees: Fueling Transactions

Within the Ethereum network, gas refers to the computational power required to execute transactions and smart contracts. Users pay gas fees to compensate miners for processing their transactions. Gas fees are denominated in ETH, Ethereum’s native cryptocurrency.

Fueling Decentralized Finance (DeFi)

As a breeding ground for DeFi protocols, Ethereum empowers users to take control of their finances. Borrow, lend, invest, and trade without dependence on intermediaries, fostering a more open and inclusive financial system.

Ecosystem And Adoption

Unlike centralized projects, Ethereum thrives on a vibrant and passionate community. Developers, miners, and users participate in its governance and evolution, ensuring its development remains transparent and aligned with the community’s needs. This growing ecosystem includes decentralized exchanges (DEXs), gaming applications, and more. 

Exploring Layer 2 Scaling Solutions

Layer 2 scaling solutions offer a promising pathway to address the scalability challenges faced by the Ethereum mainnet. They operate as secondary layers built on top of the main blockchain, providing alternative mechanisms for transaction processing and data storage.

Here are some common types of Layer 2 solutions:

  • Sidechains: Independent blockchains that run in parallel with Ethereum, enabling faster and cheaper transactions.
  • Plasma Chains: Blockchains that leverage Ethereum for security and finality, offering scalability benefits through data offloading.
  • Optimistic Rollups: The technology employed by the Ethereum network for token transactions, which bundles multiple transactions off-chain and submits a summary to the mainnet for verification.

Beyond Features: What Truly Sets Ethereum Apart?

Ethereum’s uniqueness extends beyond its specific features, encompassing its fundamental characteristics and impact on the blockchain landscape.

Network Effect and Ecosystem: Through its early adoption and widespread implementation, Ethereum has established a robust network effect. Developers, projects, and users gravitate towards it, creating a flourishing ecosystem that strengthens its overall value and resilience.

Security and Trust: Built on a Proof-of-Work (PoW) consensus mechanism, Ethereum offers a high level of security and protection against malicious attacks. Its distributed nature further bolsters trust and transparency, minimizing the risk of centralized control.

Flexibility and Adaptability: Ethereum’s design prioritizes flexibility and adaptability. Upgradeability mechanisms allow it to evolve and adopt new features to remain relevant and address emerging challenges in the blockchain space.

Global Impact and Pioneering Spirit: Ethereum has gone beyond being a mere technological advancement; it has ignited a global conversation about decentralization, ownership, and financial autonomy. Its pioneering spirit continues to inspire innovation and shape the future of our digital world.

How To Get Started  on the Ethereum Network for ERC-20 Tokens.

To buy/sell ERC-20 Tokens, you’ll need a crypto wallet. There are several crypto wallets to choose from within the Ethereum network and, popular options include software wallets like MetaMask, Trust Wallet, Coinbase Wallet, Binance WAllet, etc. 

If you are using a desktop computer, you can download Google Chrome and install the MetaMask Wallet Chrome extension. If you prefer using your mobile phone, you can download MetaMask wallet via Google Play or the iOS App Store. 

Just make sure that you are downloading the official Chrome extension and mobile app by visiting MetaMask Wallet’s website.

Metamask

Once you’ve registered and set up your wallet via the Google Chrome Extension or via the mobile app you downloaded, MetaMask wallet allows users to manage their cryptocurrency wallets and interact with decentralized applications (DApps) to execute transactions on supported blockchain networks directly from their browsers. (Write down your seed phrase on a piece of paper and keep it in a safe place!). 

Now, you’ll need to connect and add Ethereum to your MetaMask wallet. You may refer to MetaMask support page for reference on their website. 

Trading ERC-20 Tokens on the Ethereum Network.

In order to ERC-20 token trades on the Ethereum network, you will need to buy ETH as your base currency. You can buy ETH on centralized exchanges such as Binance, copy your wallet address from Metamask, and then send the ETH from Binance to your Metamask wallet. 

You can also purchase ETH directly within the Metamask wallet using traditional payment methods such as credit or debit cards, etc.

Ethereum network

Just click on the “Buy/Sell” button within Metamask to open the interface. Here, you can put how much ETH (or any other token) you want to buy in terms of dollar terms, pick your payment method, and then click “Buy”.

Note that to buy crypto directly within Metamask, you will need to provide info such as your country and state. However, it is a straightforward process that only takes a minute.

It’ll only take a couple of minutes at most for your ETH to arrive in your wallet. Once the ETH arrives, you are all set to begin trading ERC-20 tokens on the Ethereum network. So, head over to UniSwap to get started on your trading journey.

How To Trade ERC-20 Tokens On The Ethereum Network Using UniSwap

Uniswap is a decentralized exchange (DEX) protocol built on the Ethereum blockchain. It allows users to trade Ethereum-based tokens directly from their wallets without the need for intermediaries or traditional order books. 

Uniswap offers users a simple and straightforward way to buy and sell a wide variety of tokens. Be sure you’re on the  Uniswap website to protect your wallet.

The first step is clicking on the “Launch App” button at the top right corner, as shown in the image below:

Uniswap

The next step is clicking on the connect wallet option on Uniswap at the top right corner, as shown in the image below:

Uniswap Ethereum

Connect to your preferred wallet as shown below. (In this case, it’s Metamask):

Swap

Once connected, switch Metamask to the Ethereum network. (If you’re already on the Ethereum network, you do not need to switch):

Ethereum swap

After connecting MetaMask to the Ethereum network, go to Uniswap, and then you can start your ERC-20 Tokens on the Ethereum network using UniSwap.

Trading Ethereum Tokens On Uniswap

The next step is to select your preferred tokens on the UnsSwap interface and since Uniswap operates on a token to token trading model, click on the “select token” button to select the trading pair you want to trade against. 

For example, if you want to buy USDT using ETH,  select ETH – USDT, enter the amount, then click on “swap” or “trade now” and confirm the transaction in your Metamask wallet. You can view the tokens in your wallet’s asset list.

Uniswap

Buying and Selling ERC-20 Tokens with the Metamask Wallet

Ethereum Network users can also buy and sell tokens using the Metamask extension wallet already connected to the Ethereum network. To do this, make sure you’re connected to the Ethereum network and have ETH to swap and pay for gas fees. Then, navigate to the “Swap” button as shown below. This will take you to the Swap interface inside Metamask.

metamask swap

Using the image above as a guide, you can also search for tokens using the name or the contract address, just like on UniSwap. Input the amount of ETH you want to swap, confirm that you have the correct token, and then click “Swap.” Once the transaction is confirmed, the tokens you just bought will be sent to your wallet.

Tracking ERC-20 Token Prices on The Ethereum Network

ERC-20 token holders and traders can take advantage of on-chain tools like DeFiLama to gain access to comprehensive market insights for specific tokens. These insights include price data and contract information, empowering users to make well-informed trading decisions based on reliable and up-to-date information.

Dextools is a comprehensive analytic resource for managing digital assets traded on ERC-20 Decentralized Exchanges. It’s a vibrant analytical cryptocurrency resource that provides statistical information on all leading blockchains and crypto projects. 

Dextools

Among these features, an exceptional one is the charting functionality, which delivers both real-time and historical price data for a wide range of tokens. 

By utilizing these charts, users gain valuable insights into price trends, trading volumes, and other pertinent metrics. This enables them to pinpoint potential entry or exit points for their trades with precision and confidence. For example, let’s assume you’re $ETH for $LIDO, your trading pair is ETH/LIDO.

Note, Trading pairs serve as bridges between currencies. For example, the ETH/LIDOpair allows you to acquire $LIDO tokens using Ethereum (ETH).

Choose the pair that fits your funding situation and trading strategy. Consider using ETH if you already hold it, or fiat currencies if you’re venturing in fresh. 

Let’s track the $LIDO token on Dextools, here’s what we have:

Charts

Conclusion

Buying, selling, and trading ERC-20 tokens on the Ethereum network can be a thrilling adventure, opening doors to exciting investment opportunities and unlocking the potential of decentralized finance. However,  it demands knowledge, caution, and a well-defined strategy. 

This guide serves as your map and compass, but the ultimate treasure lies in your own learning and exploration. Navigate with confidence, trade responsibly, and remember that the most valuable asset in this journey is your knowledge.

Posted on

How to Buy, Sell, and Trade ERC-20 Tokens on the Ethereum Network

[toc]

The Ethereum network stands as a revolutionary innovation in the realm of blockchain technology. It serves as a robust platform for building and deploying decentralized applications (dApps), fueling the growth of decentralized finance (DeFi) and transforming the way we interact with financial services. However, with its widespread adoption and increasing popularity, Ethereum has faced challenges of scalability and high transaction fees, leading to the development of Layer 2 scaling solutions to enhance its capabilities.

The Ethereum blockchain hums with innovation, birthing a new breed of digital assets known as ERC-20 tokens. These versatile gems unlock a treasure trove of possibilities, from voting rights in decentralized communities to fueling innovative applications and even representing virtual currencies. 

ERC-20 tokens are standardized building blocks on the Ethereum network. They adhere to a specific set of rules, ensuring seamless interaction and divisibility, making them perfect for trading and diverse applications. Think of them as digital coins, each with its unique identity and purpose, ready to be exchanged, used, and explored.

Whether you’re a seasoned crypto trader or a curious newcomer, navigating the thrilling world of ERC-20 trading can be challenging. This comprehensive guide will equip you with the knowledge and tools to confidently buy, sell, and trade these digital assets on the Ethereum network. 

Some of the major and popular ERC-20 Tokens are Tether (USDT), Polygon (MATIC), Chainlink (LINK), Uniswap (UNI), Lido DAO (LIDO), Maker DAO (MKR), amongst many others. 

Features of Ethereum Network

Ethereum’s innovative design sets it apart from other networks, paving the way for a decentralized future of finance, applications, and beyond. Distinguished by its unique features and capabilities, it stands as one of the pioneers of Blockchain Technologies with standout features like: 

The Power of Smart Contracts

The Ethereum Virtual Machine (EVM) serves as the core engine that drives the execution of smart contracts on the Ethereum network. These smart contracts are self-executing code that automates various actions and agreements, forming the foundation of dApps and DeFi protocols. EVM compatibility is crucial for deploying and interacting with ERC-20 tokens, the most common token standard on Ethereum.

Unlike static databases, Ethereum boasts the groundbreaking ability to execute self-enforcing agreements through smart contracts. These programmable pieces of code automate a wide range of tasks, enabling trustless interactions and the creation of innovative applications in diverse sectors.

Layer 1 and Layer 2: Addressing Scalability

The Ethereum mainnet functions as a Layer 1 blockchain, the base layer where all transactions are ultimately settled. To address the scalability bottlenecks on this primary layer, Layer 2 solutions have emerged as a promising approach. These solutions aim to offload a significant portion of transaction processing off-chain, resulting in increased throughput, faster confirmation times, and significantly reduced transaction costs.

A Platform For Innovation

Ethereum isn’t just a cryptocurrency platform; it’s a fertile ground for developers to build revolutionary decentralized applications (dApps). From DeFi protocols automating financial transactions to NFTs unlocking new ownership models, the possibilities are endless.

Gas and Gas Fees: Fueling Transactions

Within the Ethereum network, gas refers to the computational power required to execute transactions and smart contracts. Users pay gas fees to compensate miners for processing their transactions. Gas fees are denominated in ETH, Ethereum’s native cryptocurrency.

Fueling Decentralized Finance (DeFi)

As a breeding ground for DeFi protocols, Ethereum empowers users to take control of their finances. Borrow, lend, invest, and trade without dependence on intermediaries, fostering a more open and inclusive financial system.

Ecosystem And Adoption

Unlike centralized projects, Ethereum thrives on a vibrant and passionate community. Developers, miners, and users participate in its governance and evolution, ensuring its development remains transparent and aligned with the community’s needs. This growing ecosystem includes decentralized exchanges (DEXs), gaming applications, and more. 

Exploring Layer 2 Scaling Solutions

Layer 2 scaling solutions offer a promising pathway to address the scalability challenges faced by the Ethereum mainnet. They operate as secondary layers built on top of the main blockchain, providing alternative mechanisms for transaction processing and data storage.

Here are some common types of Layer 2 solutions:

  • Sidechains: Independent blockchains that run in parallel with Ethereum, enabling faster and cheaper transactions.
  • Plasma Chains: Blockchains that leverage Ethereum for security and finality, offering scalability benefits through data offloading.
  • Optimistic Rollups: The technology employed by the Ethereum network for token transactions, which bundles multiple transactions off-chain and submits a summary to the mainnet for verification.

Beyond Features: What Truly Sets Ethereum Apart?

Ethereum’s uniqueness extends beyond its specific features, encompassing its fundamental characteristics and impact on the blockchain landscape.

Network Effect and Ecosystem: Through its early adoption and widespread implementation, Ethereum has established a robust network effect. Developers, projects, and users gravitate towards it, creating a flourishing ecosystem that strengthens its overall value and resilience.

Security and Trust: Built on a Proof-of-Work (PoW) consensus mechanism, Ethereum offers a high level of security and protection against malicious attacks. Its distributed nature further bolsters trust and transparency, minimizing the risk of centralized control.

Flexibility and Adaptability: Ethereum’s design prioritizes flexibility and adaptability. Upgradeability mechanisms allow it to evolve and adopt new features to remain relevant and address emerging challenges in the blockchain space.

Global Impact and Pioneering Spirit: Ethereum has gone beyond being a mere technological advancement; it has ignited a global conversation about decentralization, ownership, and financial autonomy. Its pioneering spirit continues to inspire innovation and shape the future of our digital world.

How To Get Started  on the Ethereum Network for ERC-20 Tokens.

To buy/sell ERC-20 Tokens, you’ll need a crypto wallet. There are several crypto wallets to choose from within the Ethereum network and, popular options include software wallets like MetaMask, Trust Wallet, Coinbase Wallet, Binance WAllet, etc. 

If you are using a desktop computer, you can download Google Chrome and install the MetaMask Wallet Chrome extension. If you prefer using your mobile phone, you can download MetaMask wallet via Google Play or the iOS App Store. 

Just make sure that you are downloading the official Chrome extension and mobile app by visiting MetaMask Wallet’s website.

Metamask

Once you’ve registered and set up your wallet via the Google Chrome Extension or via the mobile app you downloaded, MetaMask wallet allows users to manage their cryptocurrency wallets and interact with decentralized applications (DApps) to execute transactions on supported blockchain networks directly from their browsers. (Write down your seed phrase on a piece of paper and keep it in a safe place!). 

Now, you’ll need to connect and add Ethereum to your MetaMask wallet. You may refer to MetaMask support page for reference on their website. 

Trading ERC-20 Tokens on the Ethereum Network.

In order to ERC-20 token trades on the Ethereum network, you will need to buy ETH as your base currency. You can buy ETH on centralized exchanges such as Binance, copy your wallet address from Metamask, and then send the ETH from Binance to your Metamask wallet. 

You can also purchase ETH directly within the Metamask wallet using traditional payment methods such as credit or debit cards, etc.

Ethereum network

Just click on the “Buy/Sell” button within Metamask to open the interface. Here, you can put how much ETH (or any other token) you want to buy in terms of dollar terms, pick your payment method, and then click “Buy”.

Note that to buy crypto directly within Metamask, you will need to provide info such as your country and state. However, it is a straightforward process that only takes a minute.

It’ll only take a couple of minutes at most for your ETH to arrive in your wallet. Once the ETH arrives, you are all set to begin trading ERC-20 tokens on the Ethereum network. So, head over to UniSwap to get started on your trading journey.

How To Trade ERC-20 Tokens On The Ethereum Network Using UniSwap

Uniswap is a decentralized exchange (DEX) protocol built on the Ethereum blockchain. It allows users to trade Ethereum-based tokens directly from their wallets without the need for intermediaries or traditional order books. 

Uniswap offers users a simple and straightforward way to buy and sell a wide variety of tokens. Be sure you’re on the  Uniswap website to protect your wallet.

The first step is clicking on the “Launch App” button at the top right corner, as shown in the image below:

Uniswap

The next step is clicking on the connect wallet option on Uniswap at the top right corner, as shown in the image below:

Uniswap Ethereum

Connect to your preferred wallet as shown below. (In this case, it’s Metamask):

Swap

Once connected, switch Metamask to the Ethereum network. (If you’re already on the Ethereum network, you do not need to switch):

Ethereum swap

After connecting MetaMask to the Ethereum network, go to Uniswap, and then you can start your ERC-20 Tokens on the Ethereum network using UniSwap.

Trading Ethereum Tokens On Uniswap

The next step is to select your preferred tokens on the UnsSwap interface and since Uniswap operates on a token to token trading model, click on the “select token” button to select the trading pair you want to trade against. 

For example, if you want to buy USDT using ETH,  select ETH – USDT, enter the amount, then click on “swap” or “trade now” and confirm the transaction in your Metamask wallet. You can view the tokens in your wallet’s asset list.

Uniswap

Buying and Selling ERC-20 Tokens with the Metamask Wallet

Ethereum Network users can also buy and sell tokens using the Metamask extension wallet already connected to the Ethereum network. To do this, make sure you’re connected to the Ethereum network and have ETH to swap and pay for gas fees. Then, navigate to the “Swap” button as shown below. This will take you to the Swap interface inside Metamask.

metamask swap

Using the image above as a guide, you can also search for tokens using the name or the contract address, just like on UniSwap. Input the amount of ETH you want to swap, confirm that you have the correct token, and then click “Swap.” Once the transaction is confirmed, the tokens you just bought will be sent to your wallet.

Tracking ERC-20 Token Prices on The Ethereum Network

ERC-20 token holders and traders can take advantage of on-chain tools like DeFiLama to gain access to comprehensive market insights for specific tokens. These insights include price data and contract information, empowering users to make well-informed trading decisions based on reliable and up-to-date information.

Dextools is a comprehensive analytic resource for managing digital assets traded on ERC-20 Decentralized Exchanges. It’s a vibrant analytical cryptocurrency resource that provides statistical information on all leading blockchains and crypto projects. 

Dextools

Among these features, an exceptional one is the charting functionality, which delivers both real-time and historical price data for a wide range of tokens. 

By utilizing these charts, users gain valuable insights into price trends, trading volumes, and other pertinent metrics. This enables them to pinpoint potential entry or exit points for their trades with precision and confidence. For example, let’s assume you’re $ETH for $LIDO, your trading pair is ETH/LIDO.

Note, Trading pairs serve as bridges between currencies. For example, the ETH/LIDOpair allows you to acquire $LIDO tokens using Ethereum (ETH).

Choose the pair that fits your funding situation and trading strategy. Consider using ETH if you already hold it, or fiat currencies if you’re venturing in fresh. 

Let’s track the $LIDO token on Dextools, here’s what we have:

Charts

Conclusion

Buying, selling, and trading ERC-20 tokens on the Ethereum network can be a thrilling adventure, opening doors to exciting investment opportunities and unlocking the potential of decentralized finance. However,  it demands knowledge, caution, and a well-defined strategy. 

This guide serves as your map and compass, but the ultimate treasure lies in your own learning and exploration. Navigate with confidence, trade responsibly, and remember that the most valuable asset in this journey is your knowledge.