BEGINNER MODE // VERIFIED BASICS
ETH and ERC-20 tokens
Understand the difference between Ethereum’s native asset and tokens issued through smart contracts.
How is ETH different from an ERC-20 token?
ETH is the native asset used to pay for Ethereum execution. An ERC-20 token is represented by a smart contract with rules for balances and transfers. A familiar name or symbol alone does not prove that a token contract is authentic.
Three things to verify
- Verify the token contract address using an authoritative source.
- Check the network as well as the token symbol.
- Do not infer ownership or legitimacy from a wallet balance alone.