Blockchain is advancing toward widespread adoption and continuing to dominate several industries; by 2026, it is predicted that the global blockchain market will be worth $67.4 billion.
You will wonder about producing a crypto token, whether you are embracing blockchain to improve current business operations or to build a completely new firm based on the technology.
In this post, we'll go through the many kinds of crypto tokens out now and examine how they might help businesses and consumers. We'll also give you some excellent advice and a plan for developing tokens.
What kinds of cryptocurrency tokens are available?
Payment tokens, stablecoins, utility tokens, security tokens, and non-fungible tokens are the five main categories of tokens, each serving a specific purpose. Let's examine their distinctive qualities.
Payment tokens
Online payment tokens are more commonly referred to as "cryptocurrencies" and are utilized for online transactions. These tokens enable peer-to-peer transactions without the use of intermediaries. The three most popular payment tokens are BNB, Ether, and Bitcoin.
Stablecoins
If you're interested in How to Create Your Cryptocurrency Token, you'll need to understand the different types of tokens available. Payment tokens are a subset of stablecoins that have an external backing in the form of fiat money, precious metals, industrial metals, or other cryptocurrencies. These types of tokens are less volatile and are often used for transactions. Some of the most popular stablecoins include Tether (USDT), USD Coin (USDC), and Binance USD (BUSD).
Useful tokens
Access to a good or service the token issuer gives is possible via utility tokens. Users can earn interest by using them for staking and liquidity mining.
In addition, utility tokens are frequently offered to users as rewards for interacting with the network. These tokens can be used in decision-making processes, allowing users to vote on specific topics if the project is a DAO (Decentralized Autonomous Organization).
Security tokens
Security tokens are electronic investment contracts that reflect ownership of tangible or intangible assets like stocks, bonds, and real estate. These tokens pass the Howey Test and are governed by the government.
Non-fungible tokens
NFTs, or non-fungible tokens, are digital images of unique items, both real and virtual, that are stored on a blockchain. An NFT can be made from almost anything, including immovable objects, digital music, and art. Each token has a distinct set of qualities and cannot be substituted with another.
Why do you need to create a crypto token? Overview of token benefits
Your company will benefit from the following possibilities by developing a native token:
Enhanced user acquisition – bringing in new users to the project is made easy with native crypto coins. For instance, users may receive tokens as a perk for participating in project activities or as part of their loyalty scheme.
Capital raising – using company tokens, you can, for instance, conduct a Security Token Offering (STO) to raise money.
Greater liquidity: By making your products and services available to buyers worldwide, tokens increase the liquidity of your goods and services. Additionally, fractional tokenization enables you to sell portions of a high-value item, increasing its marketability.
Decentralization: Unlike fiat currencies, which are closely regulated by financial institutions, crypto tokens are not under the jurisdiction of a single entity, making it possible to avoid go-betweens, a lot of red tape, and additional costs.
And in the interim, you will be able to provide your clients with benefits like:
International transactions can be carried out more quickly and without go-betweens, thanks to the worldwide trading of tokens.
Enhanced security: Because token operations run on the blockchain and are controlled by smart contracts, they cannot be altered.
Tokens can be used for liquidity mining as an additional source of income. If the user doesn't withdraw the tokens before the period ends, they can earn interest by staking many tokens in this manner.
Greater accessibility: As long as the user complies with the platform standards, no authority can stop them from taking place.
Five stages to creating a cryptocurrency token?
The essential steps in creating a crypto token are as follows:
Step 1. Define token type
Choose the sort of crypto token depending on your project's features and objectives. Choose utility tokens, for instance, if your platform sells goods or services or NFTs if you're creating a platform for the metaverse.
Step 2. Define token properties
A token's total supply, name, acronym, digits, and symbol should be determined. Choose a blockchain and token standard, and then. The bulk of tokens is created on the Ethereum platform using the ERC-20 (for fungible tokens) and ERC-721 (for non-fungible permits) standards, respectively.
Step 3. Develop smart contracts
You must create smart contracts—blockchain programs that automatically carry out preset actions—to ensure the smooth operation of a crypto asset. Smart contracts will forbid any manipulation of the token and guarantee its equitable distribution and use.
Step 4. Run tests
Utilize testnets like Rinkeby (Ethereum), Fuji (Avalanche), or Rococo (Polkadot) to ensure that your crypto tokens work as intended. You can simulate token usage scenarios on testnets to look for security flaws.
Step 5. Deploy tokens to the mainnet
When all goes according to plan, you can transfer your tokens to the main network and sell them to users. After introducing the tickets, you must gather user feedback, promptly make improvements, and offer support.
As you can see, creating a token is a difficult process that calls for an in-depth understanding of blockchain technology and design and marketing expertise. At the beginning of the process, having a cool name and appealing design is just as important as having a viable product. Therefore, be sure to have a team of skilled blockchain experts who can handle all facets of token development.
Conclusion
Various crypto tokens can improve and supplement your blockchain project while bringing real advantages, including decentralization, liquidity, and security. Additionally, native tokens facilitate fundraising for platform expansion.
However, to successfully launch a crypto token, you must have a solid grasp of how it fits into your ecosystem and the opportunities it will present to you and your users.
Fortunately, we have the ideal blockchain specialists who can help you through every stage of token development—from creating the strategy to incorporating the tokens into your solution—under their experienced guidance.