Many people are trying to enter the world of cryptocurrency to start earning. It’s not surprising, because the cryptocurrency area is still developing, so everyone has a chance to be on the wave and make a profit. Surely you have thought about creating your own cryptocurrency, but how hard can it be?
If you want to create your own cryptocurrency, make sure you check this material to the end. There will be a lot of helpful info for those who want to create a cryptocurrency token nowadays.
Can I make my own cryptocurrency?
Can anyone really create a cryptocurrency today? The first cryptocurrency appeared back in 2009. During this time, not only has the price of cryptocurrency increased, but blockchain technology has also advanced a lot. Today, it is no longer necessary to build a new blockchain to create your own token. So if you really want to create your own token, you will always be able to do this.
Nevertheless, to go further on the topic, we need to understand the basic cryptocurrency concepts. Coin and cryptocurrency tokensare often used synonymously, but the concepts are fundamentally different:
A coin is a crypto on its own, developed from the scratch blockchain.
A token, on the other hand, is launched on an existing platform.
Accordingly, if you want to create new coins, it will require much more investment. A cryptocurrency tokenin this regard has far fewer requirements, so it can even be created unilaterally.
The basic concepts: blockchain and smart contract
Blockchain is a real breakthrough that could change the world. There are already more than a dozen uses for blockchain, and the list is growing. The peculiarity of blockchain is that each transaction is entered as a new link, which automatically receives information about the entire blockchain.
So, the info about the transactions is linked in a single blockchain. Each block relies on the previous block. Because of this, the blockchain resists tampering with information. Thus, a blockchain is a digital ledger with many interconnected copies.
Now let’s talk about smart contracts (you can make a crypto token on the basis of smart contracts). A smart contract is an algorithm that generates and automatically regulates agreements between the parties. As soon as a predetermined condition is activated, the smart contract immediately executes the corresponding agreement. The object can be cryptocurrencies and other digital assets. Before blockchain, there were no platforms on which to implement the idea of smart contracts.
In ETH, smart contracts govern the execution of agreements between users. When a suitable transaction takes place, the execution of the prescribed actions is activated. The triggering can perform thanks to a user account or another smart contract. Nevertheless, smart contracts are difficult to create.
In addition, you need to create new smart contracts by yourself. You will also have to pay attention to the token specification. To build a smart contract, you need not only to have the necessary programming skills but also to accurately prescribe all possible variants of the situation in the smart contract.
What types of cryptocurrency tokens are out there?
You must also understand what kind of cryptocurrency tokenyou want to create. We have already discerned that tokensand coins have differences in their launch conditions. In addition to being a means of payment, cryptocurrency tokens can be created for other functions. They depend on the type, today we distinguish the following:
Utility. A means of payment in the classical sense, but in the digital form and for a specific platform.
Governance. Tokens that are used to vote on platform development issues.
Security. Analogous to real shares. Such a thing entitle the holder to receive dividends or fulfill other obligations.
Payment. These ones build for paying for goods/services on various platforms.
Non-fungible. Have a unique identification, which makes non-fungible types difficult to copy or reproduce.
Accordingly, when creating your token, you should, first of all, decide on its functions. This will determine the token specification and the choice of parent blockchain. For instance, ETH is the most popular network with fast transactions today, but if you want to create a token, remember it’s not cheap.
Why would you create a cryptocurrency token?
So, why do you really need to create a crypto token? Today smart contracts and modern technology in the field of cryptocurrency can provide many new business opportunities. In summary, you can create a crypto token for these causes:
You can create a cryptocurrency to give people new investment opportunities.
It is possible to create a crypto token to build special loyalty programs for users within a certain cryptocurrency project.
There is a way to make a cryptocurrency token and use it as a payment instrument for goods/services.
You can also build new cryptocurrency tokens representing stocks listed on special platforms.
In addition, it is allowed to create a crypto token to build the DeFi application or for gaming.
These are just some suggestions, but you can find other reasons to create a crypto token and make money from it. Why do people make non-fungibletokens? In fact, a non-fungible token allows you to sell/buy virtual objects. A non-fungible token confirms ownership of an asset and its uniqueness.
How to make a new crypto token in 5 steps?
To make sure that your work was not in vain and was successful, it is important to properly divide the process of creating a crypto token and make a step-by-step plan:
Most newbies who come into the field of crypto are not aware of all its intricacies and just want to make money. But how to create a successful project? Before creating a token, it is important to think about what problems it will solve. Also at the first stage of creating it is necessary to determine the main audience.
If you want to create a cryptocurrency, you need to choose a unique name and logo. It is important that the name and image are easy to remember. How will your currency represents in wallets or exchanges? To make an asset easy to find in a wallet, you also need a unique and short symbol. Known examples are BTC and ETH.
To create a cryptocurrency, you must also determine how it is distributed to users/investors. You can also spread assets at a certain time or after a specific period of time. For instance, the ICO allows you to raise funds from outside investors for the further development of the platform.
If you decide to create a cryptocurrency, the next step is to select the underlying network. For example, ERC-20 is the basic template for creating payment/management tokens and is supported by the vast majority of wallets.
The last step in the plan of creating an asset. You must examine what value it should have, based on how many tokens will eventually be in float and how quickly they will be shared with users.
The creation of NFTs in general differs little from payment/governance assets. The distinction is that the issue is always limited to a single instance, and division is impossible. In addition, it is necessary to add content to such a crypto token (this will provide value). However, it is better to launch such crypto tokens on specialized platforms.
Let’s also break down the practical side of the issue for a few of the main networks to create crypto tokens:
The development environment provided by ETH allows you to create your crypto token without deep knowledge of programming.
SOL is attracting a growing audience, as the network speed here is over 65,000 transactions per second with further potential growth. To create a token, you will need a wallet with a supply of SOL crypto.
BSC also has a large selection of development environments, and the core standard is supported by almost all wallets.
In addition to the above options, other networks (such as TRON and EOS) can also create tokens. All of them support most of the common standards to create your own cryptocurrency – utility, NFT, and so on. The principle and sequence of actions to create a token are approximately the same everywhere.