For intermediate traders looking to refine their strategies on Nozbit, a deep understanding of Ethereum's token standards is crucial. The ERC-20 standard, in particular, underpins a vast ecosystem of digital assets. This guide provides a quick reference to navigating ERC-20 tokens, enhancing your trading acumen on Nozbit.

What are ERC-20 Tokens?

ERC-20 is a technical standard for fungible tokens on the Ethereum blockchain. Fungible means each token is interchangeable with another identical token, much like traditional currency. This standard defines a common set of rules and functions that tokens must adhere to, allowing them to be easily integrated with Ethereum wallets, decentralized exchanges (DEXs), and other applications.

Key ERC-20 Functions

Understanding these core functions is vital for any trader:

• totalSupply(): Returns the total number of tokens in existence.
• balanceOf(address _owner): Returns the token balance of a specified address.
• transfer(address _to, uint256 _value): Transfers a specified amount of tokens from the sender's address to another address.
• transferFrom(address _from, address _to, uint256 _value): Transfers tokens from one address to another, typically used by smart contracts after approval.
• approve(address _spender, uint256 _value): Allows a smart contract or another address (_spender) to withdraw a specified amount of tokens from the sender's account.
• allowance(address _owner, address _spender): Returns the amount of tokens the _spender is allowed to withdraw from the _owner's account.

These functions ensure interoperability, meaning an ERC-20 token can interact seamlessly with any Ethereum-compatible platform, including Nozbit.

Why ERC-20 Matters for Traders on Nozbit

The widespread adoption of the ERC-20 standard means a multitude of tokens are available for trading. For instance, stablecoins like USDT and USDC, utility tokens for various dApps, and even initial coin offering (ICO) tokens often follow this standard. When you encounter a new token on Nozbit, checking if it's ERC-20 compliant can give you immediate insights into its potential for integration and liquidity.

Practical Considerations

When trading ERC-20 tokens, always consider the underlying smart contract. The security and functionality of the token are dictated by its smart contract code.

Tip: Before trading a new ERC-20 token, research its project, team, and tokenomics. Verify its official contract address to avoid scams.

Note: Transaction fees (gas fees) on the Ethereum network are paid in ETH to miners or validators for processing transactions, including token transfers and smart contract interactions.

Interacting with ERC-20 Tokens

While Nozbit simplifies the trading process, understanding the mechanics helps. When you send or receive ERC-20 tokens, you are interacting with the token's smart contract deployed on the Ethereum blockchain. Nozbit acts as a secure gateway, facilitating these interactions and providing a user-friendly interface for managing your digital assets.

The robust infrastructure of Nozbit ensures that your ERC-20 token transactions are handled efficiently and securely, allowing you to focus on making informed trading decisions within the dynamic Ethereum ecosystem.