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Nov. 7, 2022
Beginner’s Guide to Creating a New Token: Insights for Entrepreneurs and Innovators
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Nov. 7, 2022
Investing in a crypto coin is relatively much easier compared to creating a new cryptocurrency coin. While you can buy crypto via exchanges with a few clicks, creating a crypto coin requires skill, and knowledge, and involves a lot of work. You can create a crypto coin in a few different ways either by coding it yourself or without writing your code. Let us take a look at the process of creating a new cryptocurrency token.
There can be many reasons for creating a new cryptocurrency token. While some do it for fun, there are others who develop a token for more real purposes, such as the need for a token for your own community or company or creating a meme coin. It takes time, energy, and skill to create a token, but maintaining it successfully and growing is more challenging.
You can create a cryptocurrency token by choosing one of the following paths. While each method requires some technical knowledge, the difficulty differs depending on the path you choose. We will discuss four different broad ways that are usually used to create your token:
In this approach, you will first create a new blockchain by writing your own code and then create your own cryptocurrency token on it. If you have the required skill and knowledge, this is an ideal method for those looking for a method that gives the most freedom to create a token the way you want, without any restrictions. This is the best method for those token creators with big innovative plans.
Another way to create your own token is to use the source code of another blockchain. Most blockchains are built on open-source codes that can be downloaded from platforms like GitHub. Once you have identified and downloaded the right source code that meets your needs, you can customize it to create a token that is unique for you. Technical knowledge of blockchain is also important for this method, thorough less compared to creating one from scratch.
This is the way to create a new cryptocurrency token without creating or modifying a blockchain, but developing on an existing blockchain. Blockchains such as Ethereum and the BNB Smart Chain allow the hosting of cryptocurrencies created by different developers. This is arguably the simplest way of creating a cryptocurrency token. This method facilitates you in creating a new cryptocurrency that meets all your needs and dreams.
If you do not have the required knowledge and skill to create tokens using any of the above methods, you can avail of crypto token development services. The companies that offer these have the knowledge and expertise to 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 Initial Coin Offering (ICO).
The way you choose to create a new token determines what all elements have to be considered while creating a new coin, like which blockchain. Therefore, it is wise to have a good overview of these features.
Consensus Mechanism: Choosing a blockchain operating protocol, which is also called the consensus mechanism is an important element to be considered while creating new coins. You can opt for one of the most well-known consensus mechanisms like proof-of-work (PoW) and proof-of-stake (PoS) or other mechanisms that are available.
Properties of the coin: Deciding what your new crypto token will do and specifying the total supply of the coins, the proposed name of the token and the decimals, and some auxiliary functions to check token balances, and verify transactions are part of the basic function of defining the properties of the new coin. If it’s a non-fungible token (NFT), the parameters can be a bit different, where it can then state the ownership of non-fungible crypto tokens.
Smart Contract: Cryptos are controlled by smart contracts, which are software programs maintained on a blockchain to automate the execution of an agreement so that all participants can know about the outcome immediately, without the involvement of any third-party intermediary. A smart contract is an integral part of the coin you plan to create and you must design it based on how you want it to behave, and what will it do to attract more investors.
Quality Assurance: The next step is testing your new token to check whether there are any defects. The testnet is important for this. Testing is about simulating the actual creation of your token to test whether it works as it was designed to be and free from errors. The testing will involve payment, but this is part of the simulation and not real money.
Deploy to blockchain: After checking the source code of the blockchain (if you have created a new one) crypto coin, the final step is deploying it to the main blockchain - a la production server in the traditional deployment of applications. You must ensure that the contract functions perform flawlessly on a test net before deploying it to the mainnet.
The motive behind creating the token influences the selection of the right method. For example, if you have serious plans about the new coin, you would want to code it yourself or get it done through a skilled professional team accessible on freelance Task as a Service (TaaS) platforms. This will allow you to benefit from the knowledge and experience of a team who can also help you not just in coding for the creation of a token but also in planning related matters like creating a white paper, ensuring that you are not violating any laws and regulations.
Creating a new token is a transformative opportunity to innovate and offer unique solutions. However, it requires a blend of technical expertise, strategic planning, and execution. Virtual Delivery Centers (VDCs) are here to simplify the process, making token creation accessible and efficient for entrepreneurs and businesses alike.
Token Concept Development: VDCs assist in refining your token idea by aligning it with your business goals, ensuring it offers real value to users while adhering to market needs.
Smart Contract Development: The backbone of any token lies in its smart contract. VDCs provide robust, secure, and compliant smart contract solutions to govern your token's functionality.
Platform Selection: Whether you want to create an ERC-20 token on Ethereum or a BEP-20 token on Binance Smart Chain, VDCs guide you in choosing the right blockchain platform for your needs.
Tokenomics Design: VDCs help you design the economic model of your token, including supply, distribution, and incentives, ensuring a sustainable and thriving ecosystem.
Regulatory Compliance: Navigating the legal aspects of token creation can be challenging. VDCs ensure your token complies with local and international regulations, avoiding potential legal issues.
Integration with DApps: If your token is designed for use in decentralized applications, VDCs ensure seamless integration with your DApp and broader blockchain networks.
User-Friendly Interfaces: VDCs offer intuitive interfaces and tools to help users interact with your token effortlessly, boosting adoption and engagement.
Security and Testing: Comprehensive testing and security audits are critical for a token’s success. VDCs provide rigorous testing environments to detect and eliminate vulnerabilities before launch.
Launch Support: VDCs help you with token distribution, listing on exchanges, and community engagement, ensuring a smooth and impactful launch.
Post-Launch Maintenance: Tokens require ongoing support and updates to stay relevant. VDCs offer continuous monitoring and upgrades to adapt to market changes.
With VDCs, businesses and innovators can transform their token ideas into reality, overcoming technical and operational challenges while focusing on innovation and growth. By partnering with a VDC, you gain access to a team of blockchain experts who streamline the token creation process, enabling you to build a secure, compliant, and successful token.
