How to Make a Cryptocurrency Token
[TL;DR]
What you need to learn: The main concepts and programming languages you or one of your team members must know are cryptography concepts, Python, Solidity, Java and Java_script_.
Choose your blockchain and start developing: What does your project seek to accomplish? Does it prioritize security or fast, cheap transactions? Will it rely on Proof of Work, Proof of Staking or different forms of consensus? Most new blockchains are faster and cheaper than Ethereum but have not withstood the test of time yet, so we suggest starting with researching the Ethereum network before anyplace else.
Write and publish the crypto whitepaper: The whitepaper is the port of entry for investors, enthusiasts, media outlets and isntitutions to understand what your project is all about. Every crypto you have come to know has a whitepaper, so research around and find whitepapers of projects you admire and avoid sensationalist jargon.
Socials, socials, socials: If you wanna attract eyes onto your newly founded cryptocurrency, there’s no way around it; you have to show the project to the world as much as you can, and to do that you need social media. Update followers on developments constantly, host virtual or in-person gatherings such as AMAs and giveaways, interact with key influencers and projects and join events from other organizations as a spokesperson. If you wanna be seen, you have to show up.
Keywords: how to make a cryptocurrency, crypto blockchain, layer-1 blockchain, crypto whitepaper, crypto social media, crypto twitter, crypto development, create your own crypto, cypherpunks, cryptography concepts
Merely a few years ago, the idea of just a handful of people creating their own cryptocurrency would seem ludicrous. The amount of studying, obscure knowledge and effort to create something so specifically unique could steer people away from the most promising developers that were just a few steps away from a major project.
In 2022, however, not only is knowledge of crypto development much more accessible but with much more intuitive platforms that can assist developers on how to create their optimal digital assets.
In this article, we go through the necessary steps to create a cryptocurrency token - from what needs to be learned to choosing a blockchain and launch platform.
Keep in mind that we’re sticking to tokens as opposed to cryptocurrencies cause full-fledged, Layer-1 cryptocurrencies are in a completely different realm of complexity. Most of the vital steps are also purposefully general and subjective, as they rely on what you seek to accomplish with your project.
What you need to learn
Granted, no one has to be a specialist on all-things crypto to start their own project, but there are a few key factors that at least one of the team members behind it must definitely know in order to understand the best path forward and solve technical issues when they arise. With that in mind, here’s the knowledge the project will need in the bag before moving on to the next step.
Cryptography
It’s called cryptocurrency for a reason; cryptography is an essential step in understanding cryptocurrencies and how to properly develop them. It also gives you a solid understanding of the mathematics behind an ancient science that dates as far back as 1900 BC. A good place to get started with cryptography is through some of the most popular books on the topic, such as Serious Cryptography (Jean-Philippe Aumasson) and Full Stack Python Security (Dennis Byrne). It’s also helpful to go through the works of the group known as Cypherpunks; they’re the ones who paved the way for cryptocurrencies to exist.
Python
As mentioned in one of the book recommendations, Python is an integral piece of cryptography and will be key to developing your own cryptocurrency - from layers of defense to authentication mechanisms and decentralization with third-party integration.
Solidity
Solidity was the first and still the most used language created specifically for blockchain development. Created by Ethereum co-founder Vitalik Buterin himself, it has everything you need to understand and implement your project into different blockchains, develop dApps, integrate smart contracts and much much more.
Java/Java_script_
When talking about programming, no developer is whole without Java and Java_script_. The language is part of every single website and application that you use in your daily life, and that includes the foundation of several cryptocurrency networks. From developing smart contracts from scratch to developing powerful dApps, Java can also be integrated with multiple programming frameworks including Vitalik’s Solidity.
Choose your blockchain and start developing
This portion of the development, the most important one by far, is extremely subjective as it relies on a vast array of different needs and goals; what does your project seek to accomplish? Does it prioritize security or fast, cheap transactions? Will it rely on Proof of Work, Proof of Staking or different forms of consensus?
All those questions are extremely relevant towards determining what blockchain you will be using. From that point forward, you are able to study the network, how tokens in that blockchain are developed (there are tons of examples online) and what are the benefits.
For instance, Solana, Fantom, Avalanche and Terra are all very popular Layer-1 blockchains - meaning blockchains that are not built on top of another network, entirely unique in its code. They each hold different purposes for those looking to build a token on their ecosystem. However, they are not only quite new but also lack the experience of withstanding massive mainstream use - which can cause some outtages, like it has happened to most of them quite a few times.
So here’s a suggestion: research Ethereum before anyplace else. Despite its high fees and congestion issues, Ethereum has successfully withstood the test of time over and over again, and already has thousands of projects based on its blockchain that will serve as reference on how to best approach your goals. Not to mention Solidity, the programming language that is most suited for Ethereum network than in any other ecosystem.
Write and publish the crypto whitepaper
The whitepaper is the port of entry for investors, enthusiasts, media outlets and isntitutions to understand what your project is all about. It’s important to keep a balance on the information you want to convey versus the audience you are targetting. Although your whitepaper should be filled with highly technical information, it must accompanied by easily-digestible essentials that first engage potential supporters and investors before explaining the intricacies of how your digital asset functions. Every crypto you have come to know has (hopefully) a whitepaper, so research around and find whitepapers of projects you admire. An important piece of advice; don’t use unnecessary attractive words of finance jargon where it’s not needed. Stick to the basics - say what the project does and why it is important to the ecosystem.
Socials, social, socials
It takes little time in the crypto market to realize how important social media is to the ecosystem - more specifically Twitter, Reddit and Discord. If you wanna attract eyes onto your newly founded cryptocurrency, there’s no way around it; you have to show the project to the world, as much as you can. Show that you are a dedicated team, but one that can also get with the urban crypto lingo. After all, Crypto Twitter is 90% memes.
Update followers on developments constantly, host virtual or in-person gatherings such as AMAs and giveaways, interact with key influencers and projects and join events from other organizations as a spokesperson. If you wanna be seen, you have to show up. Just remember the golden rule of social media exposition; don’t promise anything, and never especulate on how much your crypto will be worth in x amount of time - that is an immediate red flag for experienced investors, which lead the pack for the crowd to follow. Good luck!
Author: Gate.io Researcher: Victor Bastos
* This article represents only the views of the researcher and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
