How to Make a Cryptocurrency and Which Type of Assets Is Better to Create?

0
1116

Amid the increasing interest in the cryptocurrency industry, many people are willing to join this field and participate. With the growing industry trend (even despite the declining market), we observe new coins and tokens emerging in the market. These are two types of digital assets that are used in the crypto ecosystem. A coin is a unit of value native network and can be used as a means of settlement or as a store of value (ETH, BTC). Tokens are built based on existing platforms and are meant to represent assets or utilities such as digital securities, loyalty points, or access to a particular service. Tokens are created using intelligent contracts running on a blockchain.

Let’s talk about how to make your own cryptocurrency.

How to Create a New Cryptocurrency?

When constructing your own asset, the most important difference lies in the technology used to develop them. A coin is an individual asset that runs on its own blockchain system with a unique set of procedures and protocols for governing its supply, circulation, and worth. 

To make your own cryptocurrency coin, you must have the comprehensive technical knowledge and the necessary resources to build and manage a platform. Cryptos are often employed as either payment gateways or reserves of value, with their worth determined by supply-demand dynamics on digital currency exchanges.

Contrastingly, crypto tokens are established on existing blockchains such as Ethereum or Binance Smart Chain utilizing a smart contract. These tokens commonly demonstrate digital securities, loyalty points, and/or access to particular services.

Building a new crypto token is easier and less expensive than developing a coin, as it excludes the need to build a new blockchain from scratch. However, tokens are dependent on the underlying network, and any changes or updates to the network can affect the value and functionality of the token.

How to create a crypto token? Here is the guide:

  • Select the network that will be the basis for your token. 
  • To realize the potential of your asset, find out its purpose and features, such as supply limit, name, ticker symbol, and decimal value. 
  • Construct the smart contract code that defines your asset’s regulations and abilities.
  • Thoroughly test and examine your intelligent contract to make sure it functions as you imagined.
  • Make your smart contract go live on the preferred network, for instance, Metamask or MyEtherWallet for Ethereum. 
  • If you want to bring in investors, take advantage of your token being live by promoting it across social media platforms, discussion forums, and other relevant channels.

To conclude, the most distinguishing factor between coins and tokens lies within their technical specifications. Developing a coin needs much more expertise since it requires building a new network from scratch, while tokens are built upon existing blockchains.