A step-by-step beginner’s guide to creating your first cryptocurrency token

Some blockchain platforms offer pre-built APIs, but some don’t. If you decide to launch your own cryptocurrency on an existing platform, make sure to check whether they have the APIs you need. If you choose to hire a whole team of professionals to help you, it won’t be that hard to create a cryptocurrency. However, if you choose to do it yourself, you will have to do a lot of research and learning. Since the blockchain market has already more or less begun its development, enthusiasts have launched a whole group of platforms for creating tokens. Crypto enthusiasts love fully decentralized dApps (and coins) that don’t have admin keys providing backdoor access to the contract.

Some jurisdictions may even ban the use of cryptocurrencies. Consider fully your legal obligations and any compliance issues you might face. For the sake of this article, we will use coin and token interchangeably.

Steps to Create a Crypto Token

While educating yourself through online courses can help, they may require some pre-existing knowledge and also may not be in-depth enough. We can help you effortlessly hire and manage expert developers. Our practice-proven process has helped over 300 businesses, including Samsung, Airbus, Nec, Disney, and top startups, build great online products since 2016. Early-stage startups who worked with us have raised over $140M in funding.

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. 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.

Difference between crypto coins and tokens

Beyond creating the token or coin, you also need to think about making it a success post-launch. Studying other projects and their launches to see what worked well and what didn’t can help with creating your own cryptocurrency. Head to Remix, an online application for developing and deploying smart contracts on blockchains that are compatible with the Ethereum Virtual Machine. Creating a new coin can take a lot of time if you develop your own blockchain.

Since many cryptocurrencies are open-source, their code is readily available, and thus they can be forked quite easily – provided you know how to code, of course. The time it takes to create a cryptocurrency is hard to define. It can be done in anywhere from a few weeks to years – it all depends on how you go about it and the difficulty of the project. An engineer filled with enthusiasm might want to write all the code from scratch. Inspired with innovative concepts to solve existing, complex problems, he might want to pave his own path, proposing new solutions. And it is not to be accomplished without powerful resources and time-consuming work.

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For example, a new Wave token called MyLovelyNewCoin might be tied to the U.S. dollar. This reduces costs for the transfer and speeds-up the transaction. Alternatively, Waves can also use established cryptocurrencies such as Bitcoin to serve as the base behind a Waves token. The Ethereum network enables users to easily create their own cryptocurrency tokens without coding the entire system from scratch and without borrowing from the code of other coins. Ethereum’s ERC-20 standard defines a list of the functions programmers need to follow to create a new token that will operate on the Ethereum blockchain. ERC stands for Ethereum Request for Comment, while the number is an index to reference the proposal.

After all, the central premise of blockchain technology is decentralization. However, suppose you are thinking about developing a token for a closed community, such as serving a group of clinics. Now, if you want to create a cryptocurrency token with some advanced functionality closely tied to a dApp ecosystem, you will need a professional team of blockchain developers. Therefore, it’s tough to tie a token function to a DeFi or any other type of dApp. And not only tie but also make it essential to the whole dApp functioning.

Step 2: Ensure sufficient funds in wallet

Whether you’re creating a token or coin, you will need to mint the cryptocurrency at some point. For example, fixed supply tokens are usually minted all in one go via a smart contract. Coins like Bitcoin are minted gradually, as miners validate new blocks of transactions. Testnet tokens are tokens deployed on testnets intended for covering transactions for testing purposes.

You can try it for free on the
Ethereum Rinkeby network and take ownership into your crypto wallet. Once you’re ready to go live,
we can deploy your tokens to the live network for a small fee. You need a structured blockchain code audit, including auditing smart contracts. This process should include both manual and automated reviews of code. Once you have your wallet set in place, make sure you have enough funds available in your wallet to cover network and service fees.

Option 1: Create your own blockchain and native cryptocurrency

Creating your own cryptocurrency token is a lot more work than investing in a coin. Nowadays, you can buy crypto via exchanges with a few clicks of a button, but creating a crypto coin requires more action and knowledge. Most DeFi apps use the Ethereum blockchain platform, and we are experts in it. We have developed applications involving different flavors of DLT (Distributed Ledger Technology), including public and private blockchain networks.