Cryptocurrencies have taken the world by storm and are increasingly being adopted by businesses as a means of payment, investment, and as a store of value. With the rise of decentralized finance (DeFi), more and more companies are recognizing the potential benefits of having their own cryptocurrency.
Creating a cryptocurrency or a token can be a complex process, but with the right approach, it can offer many advantages such as increased transparency, reduced transaction fees, and a new source of revenue. For more information about the benefits of creating a token, read our previous article: “The Benefits of Creating Your Own Cryptocurrency for Your Business”.
In this article, we’ll provide a step-by-step guide on how to create a cryptocurrency for your business, from conducting market research to launching your own coin.
Let’s dive in!
Start with ideas
Think about the ways your business can benefit from decentralization – are you looking to simplify financial transactions, incentivize customer behavior, or raise capital? Understanding your goals and objectives will help you determine the right direction.
Coin VS Token
You will need to decide whether you want to create a coin or a token. The difference is that a coin is built on a new blockchain, creation of which requires a lot of technical work. Whereas a token runs on existing blockchains such as Ethereum, Binance Smart Chain (BSC), Polygon and others, hence it is a lot easier to create.
To help you decide which option is the best for your business, I’ve listed the advantages of each option below.
Benefits of creating a new cryptocurrency include:
Complete control over the blockchain
If you want full control over the underlying technology and network, creating a new coin might be a better option. With a new coin, you can define the rules and consensus mechanism for the network, making it easier to integrate with your existing systems and processes.
Decentralization
A new coin can provide a decentralized platform for your business, giving you greater control over the network and allowing you to create a community of users and stakeholders.
Unique use cases
With a new coin, you have the flexibility to build in the unique features you might need to support your business goals.
Now, benefits of creating a new token:
Easier development
Tokens are easier and quicker to develop compared to new coins. Tokens are built on existing blockchain platforms, so you don’t need to develop the underlying technology from scratch.
Lower costs
Developing a new coin can be expensive and time-consuming process, while creating a token is relatively more affordable.
Faster adoption
Tokens can benefit from the existing user base of the blockchain platform they are built on, making it easier to gain traction and attract users.
Compliance
Some blockchain platforms have built-in compliance mechanisms, making it easier for businesses to launch tokens that comply with relevant regulations. Hopefully, these factors will help you determine which option is the best for you.
Next up, conduct market research
Once you’ve set your goals, conduct thorough market research to determine the viability of your cryptocurrency idea. Consider factors such as the size of the target market, competition, customer demand, and regulatory requirements.
From here, depending on whether you want to launch a coin or a token, the next steps will differ.
If you want to create a cryptocurrency coin, follow these steps:
Choose a consensus mechanism
Decide on a consensus mechanism for your cryptocurrency. The most common mechanisms are Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS). Each of these has its own benefits and drawbacks, and the best mechanism for your cryptocurrency will depend on your specific goals and requirements. For instance, if decentralization is a priority, then PoW or PoS may be a better choice. On the other hand, if speed and scalability are more important, then DPoS may be the better option.
Design the underlying architecture, including:
The specifications of the blockchain
Define the size of blocks, the frequency of block creation, and the type of data that will be stored in the blocks.
The token economics, or tokenomics
Define the total supply, the issuance schedule, and any incentives or penalties for holding or using the currency.
The transaction structure
Define the type of data that will be included in transactions and the rules for verifying transactions.
The network structure
Define the number of nodes, the distribution of nodes, and the rules for adding and removing nodes.
Develop the code
Develop the code for your cryptocurrency, including the afore-mentioned specifications. Make sure to test the code thoroughly and secure it against potential vulnerabilities.
Launch the network
Launch the network and initiate the first block, also known as the genesis block. This is the starting point for your blockchain and will be the foundation for all future transactions.
Now, if you want to create a cryptocurrency token, follow these steps:
Use the right no-code platform
To create a token, the first step is to choose a suitable no-code crypto builder platform that meets your requirements. Users can create and manage tokens, NFTs, and meta-ecosystems using Side.xyz, a cross-chain platform that is easy to use and accessible to enterprises, influencers, and innovators.
The platform offers tools and capabilities for developing and managing assets on various blockchain networks, including Ethereum and Binance Smart Chain, as well as features like token issuance, trading, and NFT minting.
Side.xyz also allows users to fork successful projects and build a complete ecosystem for engaging with other bitcoin holders, and offers many pre-made templates for quickly creating tokens and NFTs. In addition, the platform enables users to build a member area, a sales page, a web app, and an online store, and to request the creation of a specific token or establish a relationship with a company for promoting their project.
Choose a template
After choosing a no-code crypto builder platform, the next step is to select a suitable template that provides the fundamental structure and functionality for your project. Side.xyz offers a variety of templates to choose from, including forking successful projects like Safe Moon, Olympus DAO, or even the ApeCoin.
The ApeCoin (APE) is a good example of a token that helps strengthen a business. Created by Yuga Labs (the creators of Bored Ape Yacht Club) in March 2022, it is the governance token of the ApeCoin DAO, a Decentralized Autonomous Organization that allows holders to propose and vote on all decisions regarding the project.
Thanks to the ApeCoin, the community can manages the treasury and makes decisions that benefit the future of the project, all this in a completely decentralized way.
An ecosystem like this may seem difficult to create (you should create a token, a DAO, a treasury management system…), but by choosing an efficient no-code platform such as Side.xyz, it is possible to create all of this in less than 5 minutes. The best part is that you don’t even need a technical background to do it…
If you are interested to set up a system like this for your business and you want to learn more about the ApeCoin DAO, we suggest you to watch this video on the ApeCoin DAO from the Youtube channel of Exodus.
Customize your project
After selecting a suitable template, the next step is to customize your cryptocurrency project to meet your specific requirements. This may include setting the total supply of tokens, defining the token’s properties, and establishing the rules for token distribution. Enhancing the attractiveness of your cryptocurrency to investors and consumers requires addressing various factors, such as offering unique features that set it apart from other coins on the market, such as more secure transactions, lower costs, or faster transaction speeds. Developing use cases that correspond to the preferences and needs of your target market can also boost your cryptocurrency’s appeal.
For example, if you are targeting the gaming industry, you may develop a cryptocurrency that serves as in-game currency. Like the “SLP (Smooth Love Potion) token” created by the famous P2E (Play 2 Earn) Axie Infinity.
Creating a tokenomics model that incentivizes people to hold and use your cryptocurrency is another way to personalize your project, including staking incentives, buyback and burn mechanisms, and other token-based rewards. This is typically the type of things that you can create in less than 5 minutes by using Side.xyz.
Deploy your token
Once you have customized your project, you can deploy it to the blockchain network using the no-code crypto builder’s intuitive interface, which makes your project live and available for use.
Integrate the token into your ecosystem
Integrate the token into your existing systems and platforms, such as wallets, exchanges, and payment processors. This makes it easy for your target audience to use the token and increases its utility.
Now, regardless of whether you’re creating a coin or a token, you will need to do the following:
Develop the Whitepaper
The Whitepaper is a comprehensive document that outlines the technical details, economic model, and vision of your cryptocurrency. It is an important tool for attracting investors and building a community around your coin/token.
Build a development team
Building a cryptocurrency requires expertise in blockchain technology, cryptography, and smart contract development. Consider hiring in-house developers or outsourcing the work to a development firm.
Build a community
Building a strong and engaged community is essential for the long-term success of your cryptocurrency. Ensure the online presence of your business as that’s where your potential users and investors are.
Launch a marketing campaign
A well-planned marketing campaign is crucial for raising awareness about your cryptocurrency and attracting new users. Consider using a mix of digital marketing, influencer marketing, and PR to reach your target audience.
Monitor and update
Cryptocurrency is a rapidly evolving industry, and it’s important to stay up to date with developments and to continuously improve the security of your cryptocurrency. Consider hiring a team of advisors to help you manage the ongoing development and growth of your cryptocurrency.
Final words
Creating a cryptocurrency is a complex process that requires technical expertise, strategic planning, and a thorough understanding of blockchain technology.
Whether you’re creating a coin or a token, you will need to determine the use case for your cryptocurrency and come up with a long-term strategy, as well as conduct market research and hire a team of developers. Use this article as your cheat sheet for when you have done all of these things.
In the next article, we will show you how no-code platforms like Side.xyz can make the process of creating a cryptocurrency a lot easier. With these, you will still need to have a good understanding of blockchain, but you won’t need to code, which will save you a lot of time and money.
