Here is all you need to know about creating crypto coins and crypto tokens

The ecosystem is saturated with an endless pool of cryptos and tokens to invest in and trade. According to Data from Coinmarketcap, there are currently over 20,000 different cryptocurrencies in circulation.

But, does that necessarily mean that it is easy to create a cryptocurrency? The answer is yes. Anyone can create crypto coins or tokens, as long as the necessary expertise, technique, tools and resources are possessed. 

But before creating your own cryptocurrency, there is a need to know the difference between a crypto coin and a crypto token. Although the two terms are often used interchangeably in the space, they technically differ in some ways. 

Crypto coins are digital currencies designed to work within a particular blockchain built specifically for it. Think about flagship digital assets Bitcoin, Ethereum, Solana, Cardano and some other cryptocurrencies which run on their own blockchains. 

While crypto tokens are digital assets built on top of an existing blockchain.

This means that tokens do not have their own blockchains, but they are built on existing networks like Ethereum, BNB Chain, Solana and so on. Tokens in this category are Shiba Inu ( built on the Ethereum network) and Baby Doge (Binance Smart Chain and Chain Link built on Solana). 

It doesn’t need to be mentioned that it is apparently harder to create crypto coins than tokens.

Creating a coin means building a blockchain network entirely from scratch. When it comes to creating cryptocurrency coins, a lot of expertise including a team of Developers is required in contrast to the creation of tokens that require less effort and technical expertise.

Interestingly, you can create crypto tokens using already existing blockchains like Binance, Polygon, Ethereum, Solana or Smart Chain and this can be done in a few minutes. 

Read also: Dami.eth: All you need to know about Ethereum Name Service (ENS 

In this article, we are going to examine how to create crypto coins and how to create crypto tokens.

Note: Regardless of how simple it might be, basic knowledge of the technical aspects of computers is required.

How to create a crypto coin 

The cost of creating a new cryptocurrency is usually around $15k to $35k, according to Coinscreed.com. The process takes between one to six months, depending on how complex the blockchain and coin are.

Creating a coin involves writing code to create a new blockchain, this blockchain supports your native cryptocurrency. This is where blockchain developers come in. You can find some with extensive technical skills and training in Solidity, Nodes, Rust etc. 

The first step is to choose a Consensus Mechanism. All cryptocurrencies require a mechanism to determine how nodes will process their transactions. There are several consensus mechanisms, including Proof of Work, Proof of Stake and more.

Second, create the Blockchain Nodes.

Blockchain nodes are electronic devices with IP addresses that connect to blockchain networks. Nodes are the communication endpoints to enable users to interact with the blockchain. Any distributed ledger technology, including blockchain, depends on nodes.

Crypto creators must determine how these nodes will function. Details to consider include: Permissions, Hardware (physical versus virtual nodes) and Hosting requirements (software, RAM, etc.)

The next step is to deploy Blockchain Permissions.

Blockchain permissions determine who has access to the blockchain. Public blockchains allow anyone to join and participate in the core activities of the network. Private blockchains allow only selected, verified participants.

Permissioned blockchains have qualities of both private and public blockchains and are increasingly common thanks to the ability to admit or deny specific permissions to various users selectively.

Your choice of blockchain permissions will largely depend on your goals. 

Afterwards, build the Blockchain Architecture. Before your coin launches, developers need to ensure the blockchain has functionality. Common testing details include the cryptocurrency’s address, Decentralised application (dApp) functionality and Inter-blockchain communication protocols that allow your blockchain to communicate with others. 

Related post: Clinton Felix on how you can become a successful blockchain developer

After that, the next steps are integrating application programming interfaces (APIs) and designing the interface. Without APIs, cryptocurrencies have a hard time standing out. It is important to build easy-to-use and updated frontend and backend web and FTP servers.

Do not forget to pay attention to future developer updates.

How to create crypto tokens

Creating tokens is less complex compared to creating coins. The process can be completed within twenty minutes and it can be done with no cost at all. 

We are going to illustrate the procedure using a creative process on a platform called Token Tool. Using Token Tool, users can mint their own token in 5 minutes: simply by defining the blockchain network, the token standard and the features of the token.

To be able to create crypto tokens using this platform, you need first to make sure that you own one of the supported crypto wallets. Supported wallets are MetaMask, Coinbase Wallet, and WalletConnect.

Also, make sure you have enough funds available in your wallet to cover network and service fees. Fees are paid in the cryptocurrency of the network that you will be issuing your tokens on. For instance, if you’re using Ethereum as the network of choice, then fees will be paid in ETH.

Afterwards, decide on the network for issuance. Crypto tokens remain on the blockchain that they were issued on and are therefore blockchain specific. Each blockchain has its own governing rules and supports different token standards. Depending on the token standard used, the features of the token will differ.

Popularly used blockchain networks are Ethereum and Binance smart chain and Solana. 

To proceed to create a crypto token, go to tokentool.bitbond.com and select “Create Token” from the menu bar on the left. Then connect your wallet by clicking on the “Connect Wallet” button at the top right. A pop-up window will appear with the multiple supported wallet options. Select the wallet of your choice.

You will be asked to log into your wallet, once completed you will see your wallet being connected and your address will be displayed. 

The next step is to select the network you wish to issue your tokens on. You can choose the respective network by clicking on the network’s name on Token Tool’s dashboard. Kindly note that your wallet must be connected to the same network you choose on a token tool. 

After that, specify your token’s basic characteristics which will include: Token Name, Token Symbol, Initial supply, Decimals and initial pricing. You can then add additional features and functionalities to further characterise your token. 

After specifying the features of your token, make sure to review that all information filled and selected is correct.

Then click on “Create Token” at the bottom of the page. another pop-up window will appear, asking you to agree to the platform’s Terms and Conditions. Read the Token Tool T&Cs before accepting.

The last step before your token is deployed to the network is to confirm the transaction in your crypto wallet and pay the respective gas and service fee. Click “Confirm” and it will take a few seconds until your token is created. 

After this, your token will be created. A pop-up window will appear with your block explorer link and contract ID and you will also find an “Add to Metamask” button to easily import and see your tokens in your wallet. 

You can now manage your token based on the feature enabled upon creation. It’s that simple. 

Lastly 

Creating cryptocurrencies and tokens is a deep topic that takes a long time to understand fully. However, this explainer sets you on the right path.

You only need to do a little more research to properly immerse yourself in the system.