The world is going digital, the financial industry is moving swiftly with it, and you can’t afford to get left behind. Today, cryptocurrency is a term whose significance cannot be undermined within the financial institution. Currently, there are already over one-thousand different cryptocurrency tokens and coins obtainable in the market. According to reports from Wikipedia, there’s more than 1,385 active cryptocurrencies, and counting, today.
With several hundreds of other successful cryptos, you can rest assured that the possibility of creating yours is not unlikely. The right information and the right tools at your disposal are everything you need, and you’re good to go.
Creating your own cryptocurrency comes with several benefits, especially if you have a new business idea. Also, if you have a startup in mind, developing a cryptocurrency for it can open it up to the vast opportunities available in a digitized economy.
Thanks to several developments in technology and the new approaches available today, creating your crypto coin or token is now much more straightforward. For example, Ethereum offers you the opportunity to make your crypto token using their ERC20 platform.
CREATING YOUR CRYPTOCURRENCY
Ultimately, there are two ways to develop your cryptocurrency. The options include:
- Building your blockchain.
- Using Ethereum, NEO, or another platform to build an application.
Hence, this brings you to the decision of whether you’re building a coin or token. Building a coin means starting from scratch, programming your own blockchain, and so on. Meanwhile, creating a token means using already existing and trusted blockchain technology to make your own unique token.
There are differences involved with either using a coin or token. A coin is a component of its blockchain and a token is created using an already existing blockchain. A blockchain can have several hundreds/thousands of tokens built on it, whereas, it can only have one coin.
Some popular coins and blockchain technologies used to create cryptocurrency tokens or decentralized applications (dApp) include Ethereum, NEO, Monero, Ripple, etc.
The Best Choices for Creating Cryptocurrency Tokens: Ethereum VS NEO
|Supports Virtual/Native Machine||Supports Native/Virtual Machine|
|Doesn’t Run on Proof of Work Mining||Selegate and voting system, and incomplete node|
|Trusted third party options||Minimal third party options|
|SHardware Wallet enabled||No hardware wallet|
The Ethereum blockchain provides a unique space for people who want to learn how to create their own cryptocurrency. Ethereum was the earliest blockchain to offer users the ability to create their own cryptocurrencies. Over the years, Ethereum has had several hundreds of cryptocurrencies created to its credit. Also, it is trusted and has a good track record.
However, Ethereum has a flexibility concern, which most people consider a disadvantage. On Ethereum, building your own cryptocurrency requires that you use Ethereum’s unique coding language, Solidity. So, if you are not entirely familiar with the programming language, you will have to learn it or employ expert help.
Tokens created with Ethereum are called ERC-20 tokens.
NEO is quite similar to Ethereum with what it offers. With the NEO blockchain, users can create applications and tokens. They are the second most famous platform with this offering. Even though NEO doesn’t have as much trust and popularity advantage like Ethereum, they still have other selling points that make them a strong competitor to Ethereum.
Unlike Ethereum, NEO offers users the ability to create applications and tokens using a variety of programming languages, including Java and C++. Hence, there is no need to learn a new programming language.
Tokens created with NEO are called NEP-5 standard tokens.
Building Tokens VS Building Coins
|Created on an existing blockchain||Created on an existing blockchain|
|Doesn’t take much time||Requires a lot of time, and effort|
|Maintenance and security is moderate||Maintenance and security is expensive|
Defining whether you need a token or coin is a crucial decision. That is why it was necessary to have a specific purpose for your project in the first place. This decision determines how much time, finance, and effort you will be investing in your project.
For a fresh blockchain/coin project, besides learning a new programming language and starting from scratch, you will also need an outstanding team of professional developers.
Whereas, for a token project, you already have the blockchain part sorted out. All you’re doing is creating a legal tender with the already existing blockchain through a token. The token will also have the privileges of the coin in that blockchain as there can only be one coin in a blockchain.
Also read: Wipro, R3 Construct blockchain-based Alternative Model for Digital Money in Thailand
Building and Launching Your Cryptocurrency Project
After deciding what cryptocurrency project to embark on, the next thing you will need is funds, so this is where the money comes into play. Financing a token project is cheaper, of course; you can even launch with $1000!
An excellent way to finance your crypto project is through an ICO (Initial Coin Offering) campaign. The idea is similar to traditional companies and stock exchange; when they want to go public, traditional companies launch an Initial Public Exchange in the stock market. This way, they effortlessly raise finance money in exchange for shares.
Similar to what happens with traditional companies, when investors invest, they receive more tokens at incredibly lower rates. When the project goes live, the offer closes, and the prices adjust back to normal.
Initial Coin Offerings
Gaining trust is a crucial aspect of an ICO. The best ICOs usually have a practical roadmap and a rock-solid team of expert developers. The roadmap tells your investors the critical facts about your project, its roadmap, and how your team plans on achieving it.
To successfully launch your cryptocurrency project through an ICO campaign, here is a list of things you will need:
- An innovative idea – how your project will help a precise industry, and what difficulties it will solve.
- A rock-solid team of developers for your token.
- A smart contract – a blockchain-backed digital contract that ensures that your users receive the exact amount of crypto the purchase.
- An expert external audit team – these guys maintain the security of your smart contract and token and keep it safe from hackers.
- An expertly written whitepaper – this document contains vital info on your crypto idea, the industry problems it solves, your roadmap, what technology you’re using, and every other intricate detail. Investors will require this. You can incorporate expert writing and translation services like The Word Point to have your whitepaper translated professionally. This can take your project across to a broader audience effortlessly.
- A solid marketing campaign – this includes social media presence, a website, social media, forums, etc.
The key is connecting the right experts and weaving together a rock-solid team all-round to handle the various listed parameters adequately. If you do this, you can easily create a standard and secure cryptocurrency. Also, going live, your project will effortlessly attract a host of users and investors than the average.
It is easy to create your own cryptocurrency, especially if you follow through with this guide. There are over one-thousand-five-hundred cryptocurrency variants in the world presently. However, one key point to take to note is that your project will only succeed in the long run if it’s backed up by an excellent idea. It’s a great strategy also to have your idea expressly presented in your whitepaper and translated across various languages to attract investors. You should also incorporate a reliable team all-round to see your cryptocurrency project to success.