The cryptocurrency world has witnessed a full 360-degree change since its inception. From once being viewed with skepticism and uncertainty, crypto token development and crypto coins have quickly become popular investments among a huge baseline of investors.
Cryptocurrency coins feature disruptive, novel technology that has prompted a new way to how digital currencies function in the modern economy. As a one-hundred percent virtual currency, cryptocurrency coins like Bitcoin, Litecoin, Ethereum, Tether, Cardano, and many more have become a convenient way to exchange assets virtually.
Additionally, it is safe to say that most people are well acquainted with the concept of crypto coins, especially since Elon Musk’s infamous tweet boosted the value of Dogecoin by 25% in a matter of 24 hours. But to jog the memory, crypto coins are a form of digital currency that is native to their blockchain- which stores value and acts as a platform for exchange.
Cryptocurrency coins can be earned via Proof of Stake (PoS) or mined through Proof of Work (PoW). However, it all comes down to having a great cryptocurrency coin development agency that converts your vision into an asset on the blockchain.
If you’re reading this blog, you’re about to be well-acquainted with types of cryptocurrency coins, how to start your crypto coins, how crypto coins can help you raise money and more takeaways.
Let’s begin by skimming through the types of crypto coins one should know about.
Talking about the number of crypto coins raised so far, as per CoinMarketCap, there are approximately 22,932 cryptocurrencies with an estimated market capitalization of $1.1 trillion, which is quite an impressive number, given Bitcoin launched in 2009 only!
Ethereum: With a market capital of $190 billion, Ethereum is an open-source, decentralized blockchain featuring smart contract functionality. It is the second-largest cryptocurrency coin with a prominent hold in the crypto market. Ethereum supports smart contracts running on its blockchain, which are automatically executed on meeting predetermined conditions.
An interesting fact about Ethereum is that in 2022, the crypto coin switched from proof-of-work to proof-of-stake model, which is the biggest transition in the cryptocurrency world.
Binance: This is a native coin of Finance exchange- the largest cryptocurrency exchange in the world. Binance was launched in 2018 and is used for multiple purposes like credit card payments, trading, loans, payment processing, and much more. One of its prominent features is the reduction of transaction fees for users that pay in BNB and the fact that Binance burns or destroys a fixed percentage of coins in circulation to maintain its stable value.
Binance is currently priced at $214.97 with a projection of increasing by 482.02% if the crypto coin reaches its upper price target in 2023.
Tether: While other crypto coins fluctuate in value, Tether’s value is usually equivalent to $1. This cryptocurrency coin doesn’t possess its blockchain but runs as a second-layer token on top of multiple blockchains like Ethereum, Tron, Bitcoin Cash, and Algorand. Hence, Tether is secured by the hashing algorithms of the respective blockchains.
Cardano: Also termed as the Ethereum Killer owing to its advanced smart contract functionality, Cardano has the eighth largest market capitalization in 2023. More energy efficient and eco-friendly as compared to its competing crypto coins, Cardano has established DeFi products that are similar to Ethereum and offers solutions for chain interoperability as well.
Now that you have accomplished knowing about crypto coins and the popular types of cryptocurrency coins doing the rounds, it’s time to address the question of the hour:
How To Start Your Crypto Coin?
Know that starting your crypto coin requires expertise and knowledge, and the hustle doesn’t stop there. Launching a cryptocurrency coin that gains value requires the commitment of resources like time and money. And while crypto token development is the manageable part, growing and maintaining it is the real challenge.
There are three ways to start your cryptocurrency coin:
Create A Blockchain And Native Coin: Creating one’s blockchain is very complicated, and it requires advanced technical knowledge to write your personalized code. This is where having a well-equipped crypto token development agency comes into perspective because these agencies go beyond mere code writing. As a crypto coin development agency, LBM Solutions understands the nuances of your company and tailors blockchain solutions with respect to industry-specific requirements.
Undertaking blockchain and native crypto coin services from a recognized crypto coins development agency also offers the flexibility of innovation.
Build A New Crypto Coin On The Back Of Any Existing Blockchain:
Blockchain platforms like Solana, Binance, and Ripple provide a robust foundation for new cryptocurrency coins to be built on their established blockchains. Opting for this method of crypto coin development offers a balance of ease and reliability. Here’s a closer look at how and why:
Ease of Development: By leveraging the infrastructure of an existing blockchain, you bypass many of the technical challenges and costs associated with starting a blockchain from scratch. It streamlines the process, making it more accessible to those who may not have extensive blockchain development experience.
Smart Contracts and Token Development: One of the integral features of these platforms is the ability to create smart contracts. These self-executing contracts, with the terms of the agreement directly written into lines of code, provide the flexibility to develop tokens on these blockchains. In essence, instead of creating a wholly new cryptocurrency coin, you’d be creating a token that operates on top of the existing blockchain.
Types of Token Standards: Depending on your business idea and use-case, there are various token standards you can adopt. Each standard has its features and functionalities, from simple transferable tokens to more complex tokens with unique attributes. For instance, Ethereum offers standards like ERC-20 for fungible tokens and ERC-721 for non-fungible tokens (NFTs). Other blockchains have their variations and standards catering to different business needs.
Dependence on the Parent Blockchain: It’s essential to note that while this method offers many benefits, it also has its challenges. The most pronounced is the dependence on the parent blockchain. If, for any reason, the underlying blockchain faces issues, experiences downtime, or fails, it directly impacts your token’s operability. This risk underscores the significance of why you need a great understanding and trust in the blockchain you choose as your foundation.
This is the major issue that highlights the significance of Why You Need A Great Development Agency for developing your crypto coins!
Thus, choosing the first option and availing crypto token development services from a crypto development agency is the safest, most effective, and investment-worthy option. Since these agencies are equipped with a team of skilled analysts, blockchain experts, and developers, they are able to navigate the complexities of blockchain technology. Ensuring the clients avail of secure and scalable crypto coins development solutions.
By reaching this point of the blog, you are halfway a crypto coin expert! And while the world of crypto coins seems fascinating, one always has the curiosity of how cryptocurrency coins can earn profits.
While investing and trading in crypto coins is highly profitable, when you create your cryptocurrency coins, profitability arises from mining. Mining can be defined as the computing process by which new coins are released into circulation. The process does require extensive equipment and resources; however, the profits ensure a lucrative return on investment.
Starting your own crypto coins or cryptocurrency coins is a noteworthy venture, given at least 33 new cryptocurrencies are created every week and the predicted rise of the crypto market in 2023. With the assistance of an established crypto token development agency, you can establish your mark in the crypto arena amongst Bitcoin, Ethereum, Solana, and many more.
And since cryptocurrency coins are digital currencies, they cannot be controlled, tracked, or monitored by any financial institution like the central banks. This indicates you will have extensive financial flexibility by starting your crypto coins in sync with your business requirements.
Get in touch with us to start your cryptocurrency coins and bash the world of crypto tokens!