How to Make ERC-20 Tokens: Complete, Easy and Simple!

Bittime - Token ERC-20 is a token standard on the Ethereum network. Currently, you can also create your own token with this token standard. So, how do you create an ERC-20 token? Check here to find out!

With the Ethereum token standard, you can create digital assets that can be used for various purposes, such as investments, transactions, and loyalty programs. Interestingly, the process of creating a standard token is not as difficult as you might imagine! 

This article will discuss in full what ERC-20 tokens are, their benefits, and how to make ERC-20 tokens that are easy to make yourself. Keep watching, OK!

What Are ERC-20 Tokens?

Source: Token Metrics

ERC-20 is the technical standard for tokens on the Ethereum network. ERC itself is an abbreviation for Ethereum Request for Comment, while the number 20 is this standard identification number. 

With the ERC-20 standard in place, every token created can work with Ethereum-based wallets, exchanges, and applications without compatibility issues.

Before the ERC-20 standard was introduced, each token had a different smart contract code, making integration with crypto wallets and exchanges difficult. 

With this standard, standard tokens on the Ethereum network can be more easily traded, stored and used in various applications DeFi (Decentralized Finance).

Read also: Ethereum Pectra Upgrade Will Be Completed, ETH Price Predicted to Rise!

Important Things About Standard Tokens on the Ethereum Blockchain

This Ethereum standard token has several main functions that make it a standard in the crypto world. The following are the highlights of this token standard:

1. Total Supply – Determines the total number of tokens available.

2. Balance Of – Track the number of tokens held by each address.

3. Transfer – Allows users to send tokens to other addresses.

4. Approve – Give permission to third parties to use a certain number of tokens.

5. Transfer From – Allows transfer of tokens from one address to another with the owner's approval.

6. Allowance – Determines the number of tokens that can be transferred by third parties.

Use Cases

Source: Crypto News

Before knowing how to make ERC-20 tokens, you should know that this token standard can be used in various fields. Below are some examples of its use:

• Asset Tokenization – Represents ownership of property, shares, or commodities in digital form.

• Smart Contracts & DeFi – Used in decentralized finance (DeFi) applications for lending, staking, and trading.

• Loyalty Program – Implemented by companies to provide incentives to loyal customers.

• Crowdfunding – Often used in ICO (Initial Coin Offering) to raise funds for blockchain projects.

Read also: Film About Ethereum: Vitalik: an Ethereum Story Released April 15

Tutorial How to Create ERC-20 Tokens

After knowing what an ERC-20 token is, we finally come to discussing how to make it. Well, here are the simple steps to create this token standard:

1. Set up the Developer Environment

• Installation Node.js And npm.

• Create an account at Alchemy to access the Ethereum network.

• Installation MetaMask as an Ethereum wallet.

• Installation Today to develop a smart contract with the command:
  npm install --save-dev hardhat

2. Write Smart Contract ERC-20

Create a project folder, then create files within the folder contracts/Token.sol. Use the following code as an example:

// SPDX-License-Identifier: MIT

pragma solidity ^0.8.0;

import "@openzeppelin/contracts/token/ERC20/ERC20.sol";

contract MyToken is ERC20 {

    constructor() ERC20("MyToken", "MTK") {

        _mint(msg.sender, 1000000 * 10 ** decimals());

    }

}

This code will create a named token MyToken (MTK) with a total supply of 1,000,000 tokens.

3. Create a Deploy Script

Of folders scripts, create a file deploy.js and add the following code:

async function main() {

    const [deployer] = await ethers.getSigners();

    const Token = await ethers.getContractFactory("MyToken");

    const token = await Token.deploy();

    console.log("Token deployed to:", token.address);

}

main()

    .then(() => process.exit(0))

    .catch((error) => {

        console.error(error);

        process.exit(1);

    });

4. Deploy Tokens to the Ethereum Network

• Run the following command to compile the smart contract:
  npx hardhat compile

• Then, run the following command to deploy the token to the testnet:
  npx hardhat run scripts/deploy.js --network goerli

• Once finished, you can see the token that has been created on Etherscan.

Conclusion

Creating ERC-20 tokens is now easier than ever thanks to the standard being available. By following the steps above, you can create your own tokens for various needs, from transactions, investments, to blockchain projects. 

If you want a more complex token, you can customize the smart contract with additional features such as burning, staking, or reward systems. Hopefully this article is useful, OK!

FAQ

1. Can I create ERC-20 tokens without coding? 

Yes, there are several such platforms Remix Ethereum And Token Mint which allows the creation of ERC-20 tokens without the need to write code.

2. How much does it cost to create an ERC-20 token? 

Costs depend on the network used. On testnet, it's free. However, if you want to deploy to the Ethereum mainnet, you have to pay a gas fee which can reach hundreds to thousands of dollars depending on network conditions.

3. Can ERC-20 tokens be used on other blockchains? 

Indirect. However, there is a solution like Wrapped Tokens which allows ERC-20 tokens to be used on other blockchains such as Binance Smart Chain or Polygon.

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Reference 

Alchemy, How to Create an ERC-20 Token (4 Steps), accessed April 3, 2025.

Kaleido, How to Create an ERC20 Token (In 5 Steps), accessed April 3, 2025.

QuickNode, How to Create and Deploy an ERC20 Token, accessed April 3, 2025.

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