How to Create Your Own Cryptocurrency Guide- Launch Your Coin or Token

If you’re only creating a token, not every step in the tutorial below will apply. What’s more important would be the three design steps above. Most of our instructions will cover the basics of creating a blockchain first before finally minting your coin. Creating a token on an existing blockchain can leverage its reputation and security. While you won’t have complete control over all aspects of your token, there is still a lot of customization available.

For example, once your coin is priced you can begin rewards systems for use of your exchange. You can even have other tokens represent other goods and services. Your customer base can buy into these to get earlier dibs on the token’s offering.

What To Understand Before You Start

You have to understand why people would use your token, what problems they have, and how your token can solve those problems for them. While a lack of technical skills may make someone unhireable, so can a lack of soft skills. ProCoders knows that firsthand, so we pay as much attention to hard and soft skills as possible.

Before delving into how to start token generation event creation, it is important to understand what a TGE entails. Essentially, a TGE is a fundraising event where a blockchain-based project offers its native tokens to the public. It is akin to an Initial Public Offering (IPO), where companies offer shares to potential investors.

Creating crypto coins vs. tokens

When creating a vanilla smart contract for a crypto token, keep in mind that it will be quite a hassle to replace it in case there’s a bug. Therefore run multiple tests on a test blockchain like Rinkeby or Ropsten. UniSwap, the largest DEX at the moment working on the Ethereum blockchain, did this very thing. They released a UNI cryptotoken for trading it on both centralized (CoinBase) and decentralized exchanges. Therefore, it’s a purely speculative asset (frankly, much like any crypto). The sad truth is that people come in crypto for mad economic gains; some of them, who are a bit smarter, look for ways to invest (or stake) long-term.

In addition to these three tools, we will use MetaMask as an authentication tool and a wallet to view our balance on a particular address. Furthermore, we will also use a code editor (we prefer Visual Studio Code [VSC]). Furthermore, since Ethereum is the most popular programmable blockchain, let’s touch on it briefly.

Cost of creating your own cryptocurrency

It’s beneficial to list your token on established exchanges as this can boost investor confidence and provide liquidity for your token. TGEs offer a novel approach to crowdfunding, enabling projects to sell their native digital tokens to investors. If you are contemplating how to do a token generation event, this comprehensive guide will walk you through the process. This can be done through your website, but you can also reach many crypto-investors through social media. Listing your token on platforms such as Coingecko and Coinmarketcap is useful because crypto investors often check out these sites. Investing in a new token early can pay off, so many people keep an eye on the new listings on these platforms.

• Moreover, since each testnet has its own advantages and disadvantages, it is important to know which Ethereum testnet to use for your particular project.
• However, forking a previous blockchain can be done speedily and used as a base for your new coin.
• Each requires some technical knowledge, but the difficulty differs per method.
• If people can freely buy and exchange your cryptotoken for other assets, they will, which has little to do with the overall support for your product.
• Freelance platforms don’t offer any project management support.
• You might decide to distribute them equally among early adopters through crowdfunding.

Rookies find it difficult to understand how to price their coin, let alone share them. Each cryptocurrency has its own advantages and disadvantages. It depends on what you are looking for in terms of investment and development. Some cryptos offer more lucrative returns on investment, while others have lower fees and better features. The best crypto to develop for making money is one that matches your goals as an investor and developer.

Why do I need to create a cryptotoken?

For example, the contract can burn all staked tokens, effectively removing them from the existing liquidity pool, and mint new coins plus the interest after the stake has finished. By the way, Ethereum was the first blockchain to introduce smart contracts. That’s probably the main reason why the majority of all cryptotokens are developed and deployed on Ethereum. Long story short, any cryptotoken is governed by a smart contract, which is a piece of software running on a blockchain.

If you want to make your own blockchain and coin, you will likely need a team of blockchain developers and industry experts. Even if you look at forking a blockchain like Ethereum or Bitcoin, there is still a huge amount of work required to setup your network. This would include encouraging users to act as validators and run nodes to keep the blockchain running. If you’re looking to push the limits of what a coin or blockchain does, creating a coin with its own blockchain would likely be better.

Modify the code of an existing blockchain

Fees are paid in the cryptocurrency of the network that you will be issuing your tokens on. For example, if you’re using Ethereum as the network of choice, then fees will be paid in ETH. Next, you’ll have to register your coin in exchanges of your choice (like, Binance).