Many businesses/startups are trying to make a crypto coin. The reason is cryptocurrency is the new normal. See, this IT entity is growing at an exponential rate. For instance, at the end of December 2021, the total cryptocurrency market was $2.3 Trillion. It was $776 Billion in Jan 2021.
How amazing it will be if you are a part of this entity. So, for you guys, we have designed a guide on how to make your own crypto token.
Crypto Coin or Crypto Token- Don’t Confuse these two terms
When talking about cryptocurrency, there is considerable confusion. So, if you want to make a crypto token, it is essential to clear up this confusion.
The two entities- Crypto coin and Crypto Token, are widely used in the crypt environment. People often say that these two terms are the same. However, they are not. There is a vast difference.
Cryptocoin like Bitcoin or Ethereum is the ones that can buy through credit/debit cars. Once bought, there are your digital assets that are thriving in the blockchain environment. Exchange platforms like Coinbase and Binance will help in purchasing such coins.
As for Crypto Token, it is also a blockchain asset. However, it is more like stocks/bonds. These assets can be used in trading (Same as Stocks) for buying different services.
So, if they both are based on the same criteria, then what is the major difference? Well, crypto coin has its own blockchain network, like Bitcoin. A token is one that works on an identical blockchain, like Basic Attention Coin (BAT).
Starting Your Own Crypto Token- The Reasons
Back in the day, the only secure method of transactions was through banks. However, cryptocurrency is revolutionizing these steps. It is more secure, efficient, and robust. So, should you make a cryptocurrency token? Here are some convincing reasons:
● Cryptocurrency token is an investment opportunity for people.
● It can become a solution for gamers who are looking for secure loyalty/rewards points.
● It will act like a currency but in digital form. Moreover, it will be used as legal transaction tender in countries.
● Crypto tokens will act as secure tokens for stock exchange and bond dealers.
● Since the metaverse is under construction, a crypto token will be used to trade services and products in that mixed reality world.
The reason we are talking about making a crypto token is that it is a game changer. Crypto token is an alternative to money that can be used in the real world as well as the augmented world. Many companies (and we think you should, too) are trying to make your own cryptocurrency token.
How To Make A Crypto Token
You are trying to be on the list when the crypto token is at its best. Otherwise, why would you be reading this blog?
See, in order to achieve success in creating a crypto token, it is crucial to understand the steps. So, here is a step-by-step plan for you.
Many people who are trying to enter the crypto token business make the mistake of not understanding the current crypto trends and blockchain technology.
They only want to create a token for buying and selling. That is a wrong approach. The idea is to create a crypto token that can solve the problems of different industries.
See what current tokens are offering and lacking. Then, curate your own design using that information and submit the solution.
Designing The Crypto Token Logo and Name
The next step is choosing the crypto token name. You have to choose a name that is memorable yet easy to pronounce. The same is the case with the logo that will be used on your website and crypto wallet.
Choosing the Distribution Method
How the token you are planning to make will be distributed among the investors and early buyers? Well, there are three ways to do that.
● Distributing them equally among the investors and early buyers
● Distributing them after a specific time has passed
● Distributing the tokens using how much investment was made as ICO or STO
Selecting the Token network
Obviously, you will need a network through which the token transactions will be performed. There are two types of networks available
● Public Networks like Ethereum
● Private Networks like Hyper Ledger
Ethereum is a decentralized network where no single entity has complete control. As for Hyper Ledger, it uses RAFT consensus instead of POW for validation purposes.
Making the Website/App
If you want to make a crypto token, then it is vital to create a website or application (Android or iOS). These will help in creating brand awareness. Moreover, these platforms will be the ones where your user base will buy the tokens.