A step-by-step beginner's guide to creating your first cryptocurrency token
Investing in crypto is fun, but how much fun is it to create your own coin? Creating your own cryptocurrency token is a lot more work than investing in a coin. Nowadays, you can buy crypto via exchanges with a few clicks of a button, but creating a crypto coin requires more action and knowledge.
There are several ways to create a crypto coin. You can either code it yourself or develop a coin without using coding. Creating a crypto coin can be difficult, especially the first time. Discover how you can create your first cryptocurrency token in different ways; we'll take you through the whole process step-by-step!
Why would you create a cryptocurrency token?
Anyone can create a cryptocurrency token. You can even create one just for fun. But successfully launching a cryptocurrency token is more challenging and requires a lot of time and energy. Creating the token is one thing, but maintaining and growing it is another.
So you can create a token out of curiosity, but also for more serious purposes, such as wanting a token for your own community or company, or you may simply have a good idea for a memecoin. Just make sure your activities are not considered an initial coin offering (ICO) before you violate federal securities laws in the United States. Good legal research or advice from someone with the right knowledge is, therefore, not a luxury.
How to create a cryptocurrency token?
There are several ways to create a cryptocurrency token. Each requires some technical knowledge, but the difficulty differs per method. Below, we explain four different ways to create your token the way you want.
Create your own cryptocurrency token through coding
To create your own cryptocurrency token, you can create a new blockchain by writing your own code. To complete this method, you will need a lot of technical knowledge. However, if you have mastered these techniques, this method gives you the most freedom. As a blockchain developer, you can code your token as you like, without any restrictions. Creating your own blockchain for your own token is the best option, especially if you are a token creator with big innovative plans.
It is important to choose a good blockchain operating protocol, which is also called the consensus mechanism. The most well-known consensus mechanisms are proof-of-work (PoW) and proof-of-stake (PoS). In the name of sustainability and speed, PoS is becoming increasingly popular. If you want to create a cryptocurrency token in this way, you should investigate the legal aspects carefully, so that you are not confronted with unpleasant surprises later.
Modify the code of an existing blockchain
Another way to create your own token is to use the source code of another blockchain. Most codes for blockchains are open source, which means that they may be viewed and downloaded by anyone. You can source codes of various blockchains on the GitHub platform.
Once you have found the right source code, you can customize it so that your token is unique. Here you can consider, for example, mining or burning the token. Technical knowledge is also important for this method and it is a good idea to check whether everything is legally correct.
Create a new cryptocurrency on an existing blockchain
Another option is to create a new cryptocurrency token without first creating or modifying a blockchain. Blockchains such as the Ethereum blockchain are designed to host cryptocurrencies from different developers. This is the simplest way of creating a cryptocurrency token.
You first need to choose the right blockchain that suits your vision. Ethereum and the BNB Smart Chain are popular examples of this, which you will also discover later in this article. Next, you can customize your token so that it meets all your needs. Having your token associated with a reliable blockchain platform can have a positive effect on the value and reliability of your token, but nothing is guaranteed.
Crypto token development services
If you do not want to spend a lot of time and energy creating a cryptocurrency, you can use crypto token development services. These services are offered by companies that have the knowledge and expertise to take the work out of your hands.
They will take care of all aspects related to the creation of a token, which can save you a lot of time. Besides creating the token, they can also create a whitepaper for you and arrange an ICO. The disadvantage of this method is that this service does cost money.
Creating tokens on different blockchains
When you decide to create a token, you will first have to prepare a few things. For example, on which blockchain are you going to create the coin? Each blockchain has its own advantages and disadvantages. Therefore, it is wise to have a good overview of these features. To best prepare you for creating your own token, we will take a closer look at several blockchains in this article, so you can make a good start!
How to create an ERC20 token
ERC20 tokens are tokens created on the Ethereum blockchain, where ERC is an abbreviation for Ethereum Request for Comments. For many crypto projects, the Ethereum blockchain is interesting, as proven by its number 2 position on the overall crypto ranking. You can create your ERC20 token using the following five steps.
1. Token specifications
The first step is related to the specifications of the token. Here you can determine several things that will make your token unique, such as:
2. Codification of the contract
To create an ERC20 token, you need to code in a programming language that the Ethereum protocol can understand. It is not necessary to have in-depth technical knowledge, as you can use other programs to do this. In these programs, you only need to replace your specific features with the ones you provided in the token specification.
3. Testing the token on a testnet
The third step is about testing. When you are testing your new token, the system checks whether there are any defects. The testnet is important for this. To be able to test your token, you must use a good wallet. You can use well-known software wallets such as MyEtherWallet and the MetaMask wallet.
By testing, you simulate the actual creation of your token. This process is fast and free of charge. You will be asked to make a payment, but this is part of the simulation and not real money. After completing this step, you can check the source code.
4. Verify the token source code
To create your token, source code verification is the fourth and final step in the process. This phase is very important because it allows you to implement a completely transparent project. You can do this by using the “match and disclosure” option in the contract code. Make sure that all data is correct so that the contract source code can be verified. Then all you have to do is upload your token to the mainnet and open it up to other crypto enthusiasts!
How to create your ERC-20 token in 10 minutes
It sounds like a lot of work to create an ERC-20 token, with many steps to go through to get to the result. However, creating a token can be done a lot faster than you think if you know what you're doing. There are several easy ways of creating an ERC-20 token in 10 minutes or less. For example, there are tools where you can create your token with just a few clicks of a button, as discussed in the section below.
How to build a cryptocurrency token with no coding
There are token generator platforms that can generate ERC20 tokens. Cointool is one of the apps that makes this possible. Through this platform, you can send your coin into the world in no time.
The token is not copyrighted; it will be placed on the main network directly and verified!
How to create a token on BNB Smart Chain
You can also use Cointool for your own cryptocurrency token on the BNB Smart Chain. These BEP20 tokens can be created in the same way as the ERC20 tokens. When you decide to pay attention to the programming, you will find out that creating ETH and BSC tokens is quite similar.
Using the fast version, via, for example, Cointool, you can make your token on the BNB Smart Chain in a similar way. Binance's blockchain has the advantage of gas fees that are cheap compared to those you pay on the Ethereum blockchain. In addition, the BNB Smart Chain is a lot faster at processing transactions.
What you should arrange after creating a token
If you want to turn your cryptocurrency into a serious project, you should have a plan. Is it meant to be a memecoin? Or will the token become an important token within an ecosystem? Although memecoins are driven by hype and speculation, it would be useful to create a white paper, for example, and make the token visible online.
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.
Make sure you have a plan for your token
No matter what you want to use your token for, there are plenty of different ways to create the token you want. Your motive for creating the token is important when choosing the right method. If you want to be serious, you could code it yourself or have someone else do it. If the token is intended as a joke, you can do this yourself quickly and without programming.
If you are serious about creating a token, you can choose to hire a crypto token developer. This will allow you to benefit from the knowledge and experience of someone who can also help you with a white paper, legal issues and choosing the best blockchain for your project. Whether you get someone's help or create your token, your digital currency is closer than ever!