Crypto tokens that run under blockchain technology made rapid transformations in the financial sector. Due to its decentralised nature, efficiency, and various use cases, they have gained the attention of investors worldwide. One of the best-ever advantages of crypto tokens is they are affordable to buy, sell, and trade in the exchanges. Some think of trading them, whereas some want to create their own crypto token to make money.
For numerous crypto purposes, crypto tokens are used among users. You may have a question about how tokens reap profits and how they are used in the crypto space. They increase the liquidity of the crypto market, the primary reason for seeking user attention and for use in fund-raising purposes. Enough money is reaped through these means.
As it is easy to create a crypto token many startups have made efforts to develop one. If you are also searching for efficient ways to create your own token, then this blog is for you. We people at Coinsclone have offered enough information regarding crypto token development. Buckle up to achieve your dream of token development from code to creation.
What is a Crypto Token?
The crypto token is a digital representation of a value that is created on an existing blockchain. Crypto tokens are also digital assets, crypto assets, or cryptocurrencies used for various purposes. Unlike crypto coins, tokens are not mined and do not use a consensus mechanism.
Additionally, you can build your own tokens in bulk. With a reputed blockchain and smart contract, you are capable of creating a crypto token easily. Before a decade ago, only 7 cryptocurrencies were in existence. Now, can you imagine how many cryptocurrencies are there? There are nearly 9,000+ in the crypto market. This is the live proof of the rapid growth of tokens. As the token numbers hit high, the need for an enriched crypto exchange platform has also risen.
In the year 2022, the cryptocurrency market was valued at USD 45 million. It is expected to reach 110.12 billion in the year 2028. Cryptocurrency exchanges showered with huge profits and worldwide fame. This resulted in a new business idea of Creating a Crypto Exchange for newbie startups and entrepreneurs.
Coming back to the point, the token creation process requires proper guidance, a clear roadmap, and support from an expert team. With effective business plans, they are now adopted by newbie startups and entrepreneurs for revenue. As there are various types of crypto tokens, based on the business need the startups create their tokens. Let’s have a look at the types of crypto tokens.
Types of Crypto tokens
Crypto tokens are divided into numerous types depending on their working nature, security, usage, and others. The major two types of crypto tokens and their sub-divisions are mentioned below.
Fungible tokens
Fungible tokens are a type of crypto asset in which they are divisible and interchangeable. Users with fungible tokens can buy, sell, and trade with other fungible tokens. Hence, these tokens possess the same value and functions. The tokens are divisible, exchangeable, and non-unique.
- Utility Token – Utility tokens do not represent any ownership or real-term asset. Also, they give access to a specific product or service within a blockchain community. Crypto users always choose this type of token to create for their business purposes. These utility tokens are widely used to raise funds, provide access to services, and for trading purposes.
Other than that, in decentralised exchanges, the utility tokens act as a means of incentive within an ecosystem. With these tokens, DeFi users get voting rights to raise voices for the decisions in governance. Additionally, traders use these tokens for staking and IFO.
- Security Tokens – For more security purposes, real-world assets like gold, commodities, and real estate are backed and they are referred to as security tokens. As per the SEC (Securities and Exchange Commission) rules and regulations, the tokens are digitalized. The three different types of security tokens are asset-backed, debt, and equity tokens.
Usually, a company’s share or the ownership of the company’s equity is backed which are known as equity tokens. The asset-backed tokens are nothing but real-world assets like gold, property, etc are backed into the tokens. Short-term loans or cash are borrowed with an interest rate to build a cryptocurrency token named debt token.
Non-Fungible Tokens
Unlike fungible tokens, non-fungible tokens (NFT) are non-exchangeable and indivisible. They are unique and possess different values. Real-world things like a small sketch, digital art, vintage materials, or anything can be tokenized as a non-fungible token. In NFT marketplaces users can trade, list, bid, sell, and exchange these NFTs at high prices.
Depending on the business motto and need, the startups create a crypto token that brings enough revenue. But, what is the use of creating a crypto token? As they are digital assets, they offer various benefits for the users who create them. If you want to know more about them…just scroll down…
Benefits acquired by Creating a Crypto Token
Crypto tokens stand apart from other investments just by their various uses. As it has wide use cases, they shower numerous benefits for the token creator. Through these, they have become an inevitable investment option for users all over the world.
Used in International Transactions
The crypto tokens have no boundaries. People from all parts of the world can sell, buy, or trade them. Only a very few countries have strict rules and regulations in the crypto exchange. This made many startups create a crypto token with additional features.
Has become the Best Investment
As the tokens are created on an existing blockchain, the chances for fraud, and scams are zero. This has boosted the trustworthiness and investment options for users. Hence, it made the crypto tokens gain the attention of investors, traders, and users. So, for a startup, this would be a perfect time to create a crypto token for investors.
Crypto Crowdfunding
Like traditional crowdfunding, with crypto tokens newbie startups and entrepreneurs can raise funds. For any of the crypto or DeFi projects, startups would create their own crypto tokens and sell them to the investors. If the investor has trust in the project and the token, they would fund them and get the crypto tokens.
Accessibility
Everyone with a crypto wallet has access to trade crypto tokens. Unlike traditional banking methods, huge or long-tiring procedures are not followed for crypto trading. This saves the valuable time and energy of the investor. Who else says no to a time-saving perfect investment? No one, right?
As a startup, your only focus must be to create a crypto token with an easily accessible nature.
To achieve fame and Global Recognition
The primary reason for the introduction of crypto tokens is to get attention and fame. By introducing a brand new enriched token in the crypto space, you may stand out of the box. This also helps you get the limelight for your other crypto projects. It also benefits brand recognition.
Online Payments
Crypto tokens are not only used in the crypto space. Rather, they are also used in our day-to-day life. Popular companies like Amazon, Twitch, and Starbucks are now accepting cryptocurrency payments. This enabled more users to purchase and buy the crypto tokens. Even in the upcoming years, digital asset payment will be normalized all around the world.
High Usage in DeFi Platforms
Many startups create tokens to list them in DeFi platforms. With the help of tokens, users get access to various financial services. People will stake, lend, and trade the tokens. Hence, with the help of an enhanced DeFi Exchange Platform, you can gain immense attention from crypto users.
And also if you tend to Develop a Decentralized Exchange Platform you can create a crypto token as your native currency. For example, Pancakeswap, a popular DEX platform has ‘Cake’ as its native token.
Long-term Investment
Like traditional investment methods, crypto tokens have also become a secure long-term investment. By staking the tokens in the exchanges for a certain period, users can gain more than the investment. For investing purposes, crypto users search for the perfect crypto token. So, you can create a crypto token that fulfills the user’s needs.
Revenue-Generation Options
With efficient tokens, users also get enough benefits. One such thing is massive earning streams. Users can get tokens as their rewards and they can redeem them for other purposes.
Various crypto exchanges conduct referral and royalty programs where users can get additional tokens. Through these means both users and the token creators can get enough benefits.
Gaming Platform Usage
Blockchain technology has also evolved into the virtual gaming industry. Users can buy various types of crypto tokens to earn by simply playing games. This is a recent technological advancement of the crypto tokens. Using a digital token helps users to generate enough revenue and fame.
These are some of the common benefits acquired by creating a crypto token. If you are a startup striving to create a crypto token, surely without any hesitation you can go with the process. As various benefits are acquired, many have taken the crypto token development that is a pioneer in the crypto space. As you have clear the benefits, it is important to know the key features to implement in your crypto token.
Implementation of Key Features in a Crypto Token
Features are the root of the success of a crypto token. When you integrate potential features, you can gain a wide set of audience. Stand out of the box with your exemplary features.
Blockchain-oriented
Make a crypto token in an enhanced blockchain. Every blockchain in the crypto industry has its specifications and nature. So, pick the perfect blockchain to create a crypto token.
Security Protocols
Try to integrate exponential security features in creating a crypto token. To safeguard the tokens from scams or other fraudulent activities, it is essential to integrate advanced-level security features.
Decentralized options
Create a Crypto token that is flexible to use in all decentralized streams. Make a crypto token run in a decentralized manner without the control of a central entity.
Wallet Compatability
Design a crypto token that would be compatible with all types of crypto wallets. This ensures high usage among crypto users. If you need to store your tokens separately, you can create your Cypto Wallet with potential features.
Accessible nature
Make your own crypto token that is easily accessible for all crypto platforms. The accessibility nature ensures your token is used for various crypto purposes.
Ensure Interoperability
Make your crypto tokens with interoperable nature, so that they can be interchangeable within an ecosystem.
Although you have come to the point of creating a crypto token, it is essential to focus on some of the essential factors. With proper guidance, technical support, and a roadmap, you can create a crypto token with ease. But, before being involved in the token creation process, you must know about the important things that are to be considered. Let’s focus on that part next.
Factors to Consider before Creating your Crypto Token
The token creation process may look easier, but if you complicate it, it will be the toughest process. Before delving into the crypto token development, keep some of the points in mind.
Choice of picking the right development team
The first and foremost factor that must be considered is choosing the development team. For crypto token creation, you can either approach a freelancer or a development company. But, while approaching a freelancer, you may face technical issues.
And, you may not be sure about their token creation work. So, it is better to choose a reputed Crypto Token Development Company that excels in creating tokens.
Define the Purpose of Token Creation
You must be quite aware of the purpose of creating the tokens. As tokens have various use cases, you must be clear in the vision and mission. Nearly 7000 crypto tokens are in existence, but if you want your token to get the spotlight, then be clear about the purpose.
Proper Front-end and Back-end features
Choosing the token name, symbol, features, and functionalities are important factors to be considered. As much as the token features are given, it helps to get attention from users.
Clear Roadmap
For an efficient crypto token creation, you must possess a proper roadmap. By creating a roadmap, your token development would be processed smoothly. Include the future of your crypto token to your community to ensure trust and grab the attention of potential investors.
Security Feature Integration
Even though the crypto token is created on an effective blockchain, proper security measures must be followed on the front end and back end. While developing a crypto token, be conscious of integrating a multi-signature option. Through this, the chances for scams and hacks are completely less.
Legal and Regulatory Compliance
If you tend to create a security token it is necessary to get guidance from legal experts. SEC guidelines and regulations must be properly followed to launch your tokens in the crypto space. The tax guidelines for cryptocurrencies, security laws, and other relevant laws would differ from region to region. So, before launching the crypto tokens, analyze the laws, the jurisdiction, and other factors.
Promotion and Marketing
Once you create a crypto token, make sure to promote it properly. Engage with your community or ecosystem to raise awareness about the tokens and their efficient use cases. You can promote your crypto tokens by conducting ICOs and bounty programs.
Try to list your tokens in popular cryptocurrency exchanges. Don’t wait for people to come and get to know about your crypto tokens. Instead, reach out to an ecosystem and make users buy your crypto token.
So, the above-mentioned are some of the factors that must be considered before creating a crypto token. If you are ready with your crypto business idea, then without any doubts you can launch your tokens. Next, you may be curious to know about….
How to Create a Crypto token?
Creating a token with a renowned Crypto Token Development Company is the perfect choice. Although the developer team is responsible for the creation process, you also must be aware of the process. We have offered a simplified outline of the crypto token development.
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Choose the Best Blockchain
The first step to creating a crypto token is choosing the blockchain network. Based on congestion, and transaction speed & cost, you can choose them accordingly. As much as the blockchain network is effective, your token would also possess the same characteristics. Choose the blockchain that will suit your business purpose of token creation.
The blockchain network is the root of all factors like security, accessibility, data storage, and smart contract functionality. So, choose wisely. This blockchain is highly preferred for its transaction speed and cost. Additionally, the Ethereum-based tokens are used in dApps.
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Selection of Token Standard and Token Type
Before creating the crypto token, choose the relevant token standard in the blockchain network. Token standards are nothing but a set of rules and regulations. It defines the working nature, creation process, features, and functionalities of the crypto tokens. Hence, it is important to choose the right token standard.
For example, if you feel like raising funds through the ICO method, then you can develop ERC20 tokens in the Ethereum blockchain with enriched features. With the ERC20 token standard, ERC20 tokens can be created easily at an affordable cost. If you want to create crypto tokens for ICO in the BNB chain, you can create BEP20 tokens.
Also read: Top 10 BEP20 Tokens List of 2024
In the Tron blockchain, you can build TRC20 tokens. More or less the fungible token standards of all blockchains possess the same functionalities. Or else if you tend to make your token more unique, then you can go with the ERC721 token standard.
NFT or ERC721 token creation is an easy way to tokenize art, sketches, music albums, or anything else. Many startups tend to Create Ethereum Tokens as the Ethereum blockchain offers various benefits. Based on your business needs, choose the token standard wisely. Each blockchain has its token standard and potential values. The token standard is the deciding factor of the token nature.
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Develop Smart Contracts
The smart contract is a digital agreement for the automatic execution of pre-determined actions. You must integrate smart contracts to ensure secure, fair action and smooth transactions. The smart contracts are designed to define the token functionalities. The smart contract comprises of various functionalities like,
Total Supply – In the creation process, you have to provide the supply details. You can set the numbers for creating tokens.
Transfer – This is a predetermined condition in which the crypto tokens can be transferred automatically to the specified address.
Transfer from – Like the transfer option, this is to receive tokens from the address.
Approve – This feature is to allow users to withdraw or spend the crypto tokens from their account.
By integrating the code for these in the smart contract, you can deploy your crypto token.
Before deploying your crypto token in the blockchain’s main net, it is necessary to test it. By testing the crypto token, you can sort out technical issues, and bugs. Once the testing process is over, you can launch your crypto tokens confidently.
Either you can list the tokens in exchange directly or adopt any crypto crowdfunding method to launch your crypto tokens. Multiple testing is also essential to ensure the potential of the crypto token.
After launching the crypto tokens in the market, it is important to audit them. Regularly audit your token’s smart contracts with a professional team to ensure the standard. Auditing will also help you to keep the token up-to-date and to remove technical bugs.
Keep checking your crypto token and its progress in the blockchain. This helps you to execute your crypto project more effectively. Engage your token community or ecosystem updated. Communicate the latest updates of the crypto token. Try to promote your tokens through social media, press releases, and business listings.
So, through these simple methods, you can create your crypto tokens easily and instantly. Hence, developing a crypto token would add fuel to your other crypto project and business. After seeing the development process, you might search for the development cost for tokens. The next part is regarding that…
How Much Does It Cost to Create Your Own Cryptocurrency Token?
The approximate cost to create a crypto token would range between $3000 to $5000. But, note this is not the exact development cost. Based on various factors like development method, the choice of a crypto token development company, security factor integration, and others. It is better to create a crypto token with the help of a developer and expert team. You don’t need to worry about technical issues and other maintenance-related problems.
In that regard, we people at Coinsclone provide the potential Crypto token development services with enriched features. If you think….
Why choose Coinsclone to Create a Crypto Token?
Coinsclone is an expert in developing Crypto tokens on any blockchain as per your business need and wish. We excel in providing Crypto token development services and our work has paid huge success for clients. For your convenience, we are offering a live demo for crypto token development at a free cost. So, that you can get a clear idea about our development services.
Our technical experts, developer team, UI/UX team, and testing team will work hard to deliver your token within the specific time. The development process not only creates tokens where it opens golden opportunities for your success in the crypto space. Buckle up for the new crypto race and reap profits with crypto token development.