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5 ERC20 Tokens as a Long-Term Crypto Investment for 2022
ERC20 (also known as ERC-20) is the standard for 'fungible' tokens on the Ethereum platform, allowing dApp developers to create their own native token compatible with the network. There are hundreds, if not thousands, of these tokens - many of which represent excellent investment opportunities.
This article will discuss five of the best ERC20 tokens to buy this year, highlighting which projects have the highest potential, before showing you how to purchase one of the top ERC20 tokens today.
The Top 5 ERC20 Tokens to Buy in July 2022
Listed below are five of the best ERC20 tokens available to investors - each of which will be examined later in this article.
1. Lucky Block (LBLOCK) - Overall Best ERC20 Token to Buy
2. Chainlink (LINK) - Top ERC20 Token with Innovative Use Case
3. Loopring (LRC) - Innovative Layer-2 Scaling Solution for Ethereum
4. Maker (MKR) - Best ERC20 Token for DeFi Applications
5. Polygon (MATIC) - Popular Scaling Framework for Ethereum
A Closer Look at the Best ERC20 Tokens to Invest in Right Now
Although the cryptocurrency market is undoubtedly going through a tough time, the tokens listed above represent some of the best opportunities for a price rebound. With that in mind, let’s dive in and explore these tokens in detail, highlighting what their use case is and how their value could be affected in the months ahead:
1. Lucky Block (LBLOCK) - Overall Best ERC20 Token to Buy
Although there are hundreds to choose from, our pick for the best ERC20 token to buy right now is Lucky Block (LBLOCK). Lucky Block is a blockchain-based crypto-gaming platform that offers daily competitions that are fair, transparent, and decentralized.
Until this point, LBLOCK has been trading as a BEP20 token on DEXs like PancakeSwap - which resulted in quadruple-digit gains for presale investors earlier in the year. However, LBLOCK's long-awaited 'V2' is ready for launch on CEXs, structured as an ERC20 token compatible with an array of leading crypto exchanges.
The V2 version of LBLOCK has no tax on buy or sell transactions, making it much more appealing to day traders and speculative investors. Furthermore, since LBLOCK is now compatible with many major CEXs, this provides scope for a whole new audience of crypto investors to gain access to the token.
The ERC20 version of LBLOCK is set to list on leading crypto exchange LBank on July 25th, followed by MEXC on August 1st. Furthermore, the token is set to launch on another 5-6 leading exchanges in the coming months - meaning LBLOCK will soon benefit from a dramatic increase in liquidity.
Investors who'd like to learn more about LBLOCK or the Lucky Block project can do so through the official Discord server or Telegram group.
2. Chainlink (LINK) - Top ERC20 Token with Innovative Use Case
Another of the best ERC20 tokens to be aware of is Chainlink. Put simply, Chainlink is a decentralized oracle network that helps provide off-chain data to blockchain networks. As blockchains are inherently decentralized, they cannot use centralized entities to find verifiable data - providing a challenging dilemma.
Chainlink looks to solve this problem by using a group of 'nodes' to acquire and verify data before enabling it to be used in smart contracts on the Ethereum network. This process is facilitated using LINK, the Chainlink protocol's native token, which is used to reward nodes that provide accurate information.
Thanks to Chainlink's innovative use case, this project has already partnered with leading names like Polkadot, Synthetix, and even Google. Investors looking to gain exposure to the project's growth can purchase LINK on many crypto exchanges, with the token currently priced at around $6.40. Although this token has had a challenging period of late, there could be scope for a rebound soon.
3. Loopring (LRC) – Innovative Layer-2 Scaling Solution for Ethereum
Loopring is what's known as a 'Layer-2' solution that is built on top of the Ethereum network. Essentially this helps with Ethereum's scalability and fees - both of which have become pressing issues in recent years. According to Loopring's team, this protocol can process transactions 1,000x faster than Ethereum.
Loopring achieves these remarkable scalability powers through a feature called 'zkRollups'. The technology behind this solution is relatively advanced, although it basically allows Loopring to be highly scalable without sacrificing any security. Due to this, Loopring has already begun attracting attention from dApp developers.
Loopring also has a native decentralized exchange (DEX) powered by LRC - Loopring's native token. LRC is used to pay trading fees on this DEX, with the majority being redistributed back to liquidity providers. Given that Ethereum 2.0 continues to be pushed back, Loopring is undoubtedly one of the best ERC20 tokens to keep an eye on in the months ahead.
4. Maker (MKR) - Best ERC20 Token for DeFi Applications
Maker is the native token of MakerDAO, a decentralized protocol running on the Ethereum blockchain that offers various DeFi-related services. MakerDAO is perhaps best known for its DAI stablecoin, which is one of the largest stablecoins in existence.
Through a combination of DAI and MKR, MakerDAO allows users to lend, borrow, and swap in a decentralized manner. MKR is the token we're focusing on in this article, essentially used to stabilize DAI and ensure it remains pegged to the US Dollar. This is accomplished through an innovative 'mint and burn' mechanism.
MKR is also used for voting since MakerDAO is structured as a decentralized autonomous organization (DAO). Finally, as with most ERC20 tokens, speculative investors can also purchase MKR to gain exposure to the ecosystem’s growth – which has proved fruitful in the past.
5. Polygon (MATIC) - Popular Scaling Framework for Ethereum
The final entry on our list of the best ERC20 tokens is Polygon. Formerly called Matic, Polygon is essentially a framework for connecting blockchains together. Interoperability has always been an issue within the blockchain sector due to chains working individually, which is why Polygon's services are so sought-after.
By using Polygon, blockchain developers can launch pre-made chains that can be further customized to each developer’s needs. Since Polygon acts in conjunction with the Ethereum network, these chains are interoperable and can exchange data and value with one another.
MATIC is the native token of the Polygon network, which is used for governance, staking, and fees. The token can also be purchased for speculative reasons and surged over 660% between April 2021 and January 2022; although it has fallen significantly from those heights, there is still a great deal of interest in MATIC and its future.
How to Find the Best ERC20 Tokens for Long-Term Investment
There are thousands of ERC20 tokens on the market, each offering a specific use case and roadmap. Due to this, it can be challenging to narrow down the selection to those with inherent value.
To help with this process, detailed below are three approaches you may wish to take when looking for the best ERC20 tokens:
Look for Hot Coins Being Listed on CEXs
Centralized exchanges (CEXs) are constantly adding new tokens to their list of tradable assets - which is itself a huge sign of confidence. When a token is added to an exchange, it’s usually due to investor demand, providing scope for price increases once the token goes live.
An example of this process is the upcoming listing of Lucky Block (LBLOCK) on LBank, scheduled to occur on July 25th. Lucky Block's V2 has just gone live, featuring the ERC20 standard and no built-in taxation system, making it an appealing asset for day traders and long-term investors.
Given that Lucky Block has already commenced its regular prize draws, which saw a remarkable $1,000,000 given away last month in conjunction with rap superstar Swae Lee, the hype is beginning to build once more around the token’s price prospects - meaning this upcoming listing is eagerly anticipated.
Check Out Coins With Positive Price History
There's no doubt that the crypto market is going through a challenging period. However, savvy investors can find high-value ERC20 coins by looking at previous price action and checking for signs of bullishness.
If a token has displayed positive price movement in the past, it's usually an indicator that the project has inherent value. Thus, if the token’s price is currently deflated due to macroeconomic factors, there may be scope ahead for a rebound once these factors turn positive.
Use Social Media Platforms
Finally, social media has become a valuable resource in recent years due to the in-depth discussion that can be found on many channels. Reddit and Twitter are great examples of this, offering a platform for retail traders to discuss ERC20 tokens in an unbiased and informative way.
How to Buy Lucky Block ERC20 Token
As highlighted earlier in this guide, LBLOCK is our top pick regarding ERC20 tokens. Investors interested in acquiring some LBLOCK can do so by partnering with LBank - a leading crypto exchange with low trading fees and a user-friendly trading experience.
With that in mind, the steps below showcase how to invest in LBLOCK using LBank - all in less than ten minutes:
- Step 1 – Create an LBank Account: Click the 'Register' icon on LBank's homepage, enter a valid email address, and choose a password.
- Step 2 – Verify Account: Click 'Authentication' on your LBank settings page and enter the details needed for the platform’s KYC checks. Following this, upload proof of ID (e.g. passport) - LBank will respond within 24 hours once verification is complete.
- Step 3 - Deposit: Go to the 'Wallet' section of your account and click 'Deposit'. Choose the crypto you'd like to deposit, copy your LBank wallet's contract address when it appears, and then send the appropriate amount from your crypto wallet using this address.
- Step 4 - Buy LBLOCK: Type 'LBLOCK' into the search bar and click on the token when it appears. In the order box at the bottom of the screen, choose your order type (market or limit), enter your position size, and then confirm the transaction.
Best ERC20 Tokens - Conclusion
To conclude, this article has presented a comprehensive overview of some of the best ERC20 tokens on the market, discussing what they are, how they work, and why they are so highly sought-after.
As noted earlier, Lucky Block is our recommended ERC20 token to keep an eye on, thanks to its unprecedented growth over the past six months. Now that LBLOCK's V2 has just gone live, which uses the ERC20 standard, the token is primed to be listed on many leading crypto exchanges - which may provide the impetus needed for a rapid price rebound.