How to Create a Crypto Token: Ultimate Guide for 2023

The cryptocurrency market is growing at an unprecedented rate. In 2021 alone, the total market capitalization grew from $776.4 billion in January to over $2.3 trillion in December. You can create a new crypto token and become a part of this financial wave. But what does cryptocurrency mean? How can you make your own crypto token? This article will teach you everything you need to know about how to make your own crypto token.

Crypto Token vs Coin: What Is the Difference?

You may have heard the terms “crypto token” and “coin” used interchangeably. However, they are two different terms.

A crypto token is a digital asset traded on a blockchain network. It’s similar to stocks or bonds but more flexible because you can use cryptos as currency or trade them in exchange for goods and services.
A coin is a cryptocurrency, for example, Bitcoin or Ethereum. To buy coins online with your debit/credit card, you’ll need an exchange like Coinbase, which will also convert your dollars into Bitcoin once you’ve signed up for an account with them.

The main difference between a coin and a token is its link to the blockchain. Coins work on their own blockchain, and tokens don’t. For example: Bitcoin has its own blockchain, so BTC is a crypto coin. At this moment, the Basic Attention Coin (BAT) doesn’t have it, so this one is a token. There are a lot of blockchains on the market now. For example one of the most popular – BSC (Binance Smart Chain), has its own crypto coin – BNB.

Reasons to Start Your Own Crypto Token

Blockchain technology allows you and your businesses to do things that were once only possible through banks. So there are several reasons why you might want to create your own crypto token:

• To build an investment opportunity for people who believe in your project and want early access to it
• To generate loyalty programs for members of the community who support you and other users (like gamers pledging loyalty points)
• To create a bitcoin token or ERC20 token that can be used as a payment method within an ecosystem in exchange for goods or services
• To produce a digital currency that can be used as legal tender in your country

• To start your own DeFi app
• Create a DAO
• To make security tokens that represent shares in companies listed on exchanges
• To raise funds from investors interested in supporting your project through crowdfunding campaigns or initial coin offerings (ICOs)
• For gaming purposes, such as betting on sporting events using virtual money instead of fiat currencies like U.S. dollars or euros
• For trading purposes

These are just some of the reasons we heard from our business partners when discussing the possibility of creating crypto tokens. We at ProСoders are happy to work on your ideas and always try to stay up-to-date considering modern technologies!

Cryptocurrency Token Key Features

When you create a cryptocurrency token, you can choose the features that are most important to you. These include:

• The blockchain technology used (public vs. private, permissioned vs. permissionless).
• Decentralization or centralization of the platform’s processing power (whether a single node or many nodes do the processing of a transaction).
• A consensus mechanism (proof-of-work (PoW) vs proof-of-stake (PoS)).
• The level of transparency (the degree of openness in terms of who has access to what information on your network).
• The level of security (how easy is it for hackers to breach security protocols and access sensitive data).
• The speed (the time it takes for transactions to be processed).
• The cost (amount of fees or other ongoing costs associated with using your crypto token).
• Limitations (limits imposed on users, such as maximum amount allowed per purchase or sale transaction limit).

At ProCoders, we specialize in starting that journey off on the right foot. Our discovery phase service is designed to help you determine which features are critical for your project and what your budget should be. Before moving forward with development, we’ll help you understand which technical aspects of creating a crypto token are important.

So if you’re still trying to figure out how to begin creating your own crypto token, let us help get your business started right!

Challenges of Creating a Crypto Token

While creating a new crypto token can be a rewarding experience, it’s not for the faint-hearted. To do it right, you’ll need to devote significant time and resources. Here are the primary things you’ll need to create a crypto token.

• Time. Hiring local, in-house developers can be time-consuming and expensive. However, ProCoders can help you here, too. At ProCoders, you can hire offshore developers that will work for your budget and deliver top-quality results.
  When we were working on the Roth River project, we reduced the time it usually takes to hire a development team to only one week. Our process is simple: you tell us what developers you need, we find a team that fits your needs, and then we match them up with you!

• Money. To make a cryptocurrency token, a lot of money may be required. It means that unless you have access to significant capital reserves or investors willing to put money into your project from the outset, creating one may not be in your financial interests until later stages when demand for such products has increased substantially due to increased awareness among consumers around what these products can offer (more on this later).
• Knowledge. Creating successful cryptocurrency tokens requires extensive knowledge of blockchain technology. It requires a decent understanding of how businesses and digital ecosystems like Ethereum’s Decentralized Autonomous Organization (DAO), decentralized apps, and token supply works at a large scale. This means knowing how to build a crypto token with different types of technology, and how to properly launch an ICO and distribute tokens within the blockchain ecosystem.
• Legislation. You should remember that in some countries, tokens are equated to securities and even money, which in turn carries certain risks when you’ll start working with them.

Because there are many resources on the Internet that can teach you how to create crypto tokens, many developers have become interested in this topic and have started looking for projects where they could gain experience. Although it seems that the offer is large and there are many developers, one of our clients described the situation in a very good way. What he said is “They [US-based companies] provide shitty coders for top-dollar.”

So, you should remember that even if you hire 10 developers for high prices, there’s no guarantee that a token will be successful or widely adopted by other businesses.

Because of that, you need to find a real expert, like a needle in a haystack, to make your own cryptocurrency token properly. At ProCoders we know that the technical ability of job candidates to code is often the most important factor in determining whether or not they will be a good fit for your company. However, during our interviews, we also try to determine whether the candidate’s mindset and values are something we share.

While a lack of technical skills may make someone unhireable, so can a lack of soft skills. ProCoders knows that firsthand, so we pay as much attention to hard and soft skills as possible.

Top Solutions for Cryptocurrency

Developing crypto on your own is a challenging and time-consuming task. To make a new crypto token, you will need basic programming knowledge and access to an open-source codebase like Ethereum, Cardano, and Polygon. Keep in mind that all networks are different from each other, so you also need to study each one before you start doing something, as well as you might want to discover how to start a decentralized exchange.

ProCoders is a company whose developers will help you solve the challenges of crypto token development with extensive knowledge of web development and token creation. We know how to make crypto tokens, and they will be happy to help you create one to take advantage of the blockchain technology benefits.

Our experienced team will provide a complete solution that includes everything you need to get started:

• a full white paper that explains your project, its features, and the full development plan
• a team of specialists to help you with the technical aspects

ProCoders will provide you with the right specialists to solve your project tasks! Whether it’s building a cryptocurrency project from scratch or helping to develop an existing one, we can help you with it.

ProCoders provides a wide range of professional blockchain development services with the best cryptocurrency developers for hire. We know how to effectively hire web 3.0 developers who are good at smart contract creation, as well as the deployment and management of your tokens. What’s more, we also offer comprehensive ICO creation and launch support. What can be better?

7 Steps to Create a Crypto Token

It’s crucial to make a step-by-step plan on how to create a crypto token for your project to succeed.

Step 1: Deciding Which Business Problems Your Token Will Solve

Many people who come to the crypto industry do not understand what is happening in blockchain technology and simply want to earn money by selling tokens.

This approach is wrong because if you want to create a token that will be successful in the market, you need to solve people’s real problems.

For example, if we talk about ICOs, most of them are created to make money from nothing. Their creators do not know how many users will use their projects or whether there will be a demand for tokens issued during ICOs. As a result, many teams fail after launch due to a lack of demand for their services or products.

Because of that, the first step to creating a crypto token is to decide which business problems your token will solve, why you need it, and whether you need it.
This point is important for further definition of those characteristics of the token, and hence the preparation of a project plan.

Step 2: Defining Your Audience

You have to understand why people would use your token, what problems they have, and how your token can solve those problems for them.

For example, if you want to create a token that will be used as a currency, then some merchants or companies should accept it as a payment method. If you want to create an asset-backed token, then the value of this token must be tied to some asset – real estate, stocks, gold, or anything else with tangible value. If you want to use your token for fundraising purposes, you need to give investors some kind of return on their investment in your project.

Step 3: Choosing a Token Name and Symbol

Choose a token name that is unique, catchy, and easy to remember. A good rule of thumb is not to use the same combination of words in your project’s name that are used by other projects and not out of crypto context. For example, if you have a project named “Super Hero Coin”, then another project using the word “super” could confuse users.

The symbol is what will represent your cryptocurrency on exchanges and wallets. It needs to be memorable but also easy to read. This can be achieved by choosing an uppercase letter followed by lowercase letters or vice versa (for example, BCH or BCASH).

Step 4: Choosing How Your Tokens Are Distributed

The distribution is how tokens will be distributed among investors and early adopters of your platform. You might decide to distribute them equally among early adopters through crowdfunding. You can also distribute them at certain times or after a certain time has passed. The best way to set up token supply is based on how much money was invested into the platform previously as part of an ICO or security token offering (STO).

Step 5: Choosing a Token Network

The network is what connects all the nodes and allows them to communicate. The two most common networks are the public Ethereum network, a decentralized blockchain built on top of Bitcoin’s codebase, and private blockchains like Hyperledger Fabric that use consensus algorithms like RAFT or PBFT instead of PoW or PoS for validation.

Step 6: Choosing a Token – Use Cases

What are some of the main use cases for tokens on your platform? You should consider what price it should be worth based on how many tokens will eventually be in circulation and how quickly they will be distributed to users. For example, if you are building a decentralized social media platform where users can earn money by writing content and sharing it with their followers, then the value of your token would likely be based on how many people are using your application.

Step 7: Choosing a Token Website

There’s no point in creating tokens if nobody knows about them. You’ll want to create a website, Android, or iOS app that people can use. You may want to have an ICO or STO first to raise funds for these costs.

How Much Does It Cost to Start a Crypto Token?

The cost of creating a cryptocurrency token depends on several factors, including the complexity of your project and what services you use for development. You’ll need to pay for legal services such as patenting and trademarking your idea or software. You may also need to hire experts in marketing who can help promote your product effectively and efficiently.

The costs involved in creating a cryptocurrency token vary depending on who you choose to work with. Considering the average web 3.0 developer salary, the prices for token creation can range anywhere from $5,000 to over $100,000.

The more you need to pay for the services of developers, designers, and other specialists, the higher your cost will be. The more complex your project is, the more you need to pay for the services of lawyers and accountants to help you start your own crypto token.

ProCoders has a team of experienced developers who will help you discover your product idea and evaluate its viability. This way, you will spend little money on the discovery phase service, but you will know exactly what your project budget should be before you spend money on development and get stuck halfway because you ran out.

After the discovery phase, you can move to development. It is where the work required for your project is done. This can include coding, design, and other tasks depending on what you need to get done. Development usually takes between 4 weeks and 3 months, depending on the project’s complexity (more complex projects take more time).

How ProCoders Can Help to Launch Your Own Crypto Token

Launching your own crypto token requires help with design, development, and marketing. ProCoders offers a wide range of services for this purpose:

• Design work. We will create a custom design for your new crypto token that is both easy to use and attractive.
• Development work. We will help you find the best web 3.0 developers that know how to develop blockchain applications for managing your tokens and seeing their status on the blockchain when it’s launched.

ProCoders is a full-service outstaffing company that can help you find and hire the right talent for your project or even develop the whole project from scratch (so if you wonder how to make a bot for trading cryptocurrency – contact us). Our services are affordable and will save you time and money on hiring a developer or other specialist in this field. This approach can be especially beneficial if you are looking for someone with specialized skills in one particular area, such as Solidity development or smart contract creation and deployment. Contact us and get a consultation for free!

Conclusion

So as you see, to create your own cryptocurrency, you need:

1. Design your blockchain architecture (you need to find the right developers);
2. Audit your new blockchain and its code (you need to hire a blockchain auditor for that);
3. Get legal advice (you need to look for a professional to be sure that your crypto complies with all relevant laws and regulations).

As you can see, this is not as easy as it may seem initially. To boost the processes and have more opportunities to monetize your cryptocurrency, we at ProCoders offer highly skilled professionals to help you reach your business goals. Want to boost your project asap? Contact us today!