When it comes to creating a new coin or token, beginners and experts alike have a common complaint. Both groups despise the process of tossing a coin. It is tough to handle the start-up of a coin since it is neither simple, transparent, or straightforward. Rookies have a hard time figuring out how to price their coin, let alone share it. Experts agree. People are discouraged from even trying because of challenges.
Starting a new coin or token: The breakdown
It's vital to remember that when we talk about tokens and coins, we're using the terms interchangeably. A token, on the other hand, typically uses existing blockchains such as Ethereum or even Bitcoin's blockchain. The ERC-20 token standard, on the other hand, is widely used because it improves usability and adoption.
The term "coin" would technically have its own blockchain. By forking Bitcoin, Dogecoin achieved this. Dogecoin is a Bitcoin clone with a few tweaks.
We'll use the terms coin and token interchangeably for the rest of this article.
The easily changeable settings are frequently changed by currency and token producers. The supply or number of coins, the coin's name, and the symbol are all examples of this (think BTC, DOGE, etc). Everything is simple to set up, but the pricing isn't. A coin's value necessitates considerably more effort.
There will be no fee even if you build your own coin with the ideal aim. All new coin or token makers hit a brick wall at this point.
Create a cryptocurrency of your own
Where do prices originate? You could specify a fixed price, however it won't work for new and unknown items. Simply said, you must place your coin in a supply and demand environment and allow others to determine its value. What this truly means is that a large number of people will need to begin buying and selling the coin over time. There is no better venue than an crypto exchange for this to happen.
This is why prominent exchanges such as Uniswap have such a wide user base. They enable coin makers to set up marketplaces in the hopes of determining a price for their coin. If your coin is already well-known, these sites are ideal. However, if you're just beginning, they're not ideal. They are, however, prohibitively expensive to use for coin price discovery.
Why? First, because these platforms require a blockchain or on-chain transaction, the fees to purchase and sell on them are significant. This means that per trade, you could pay as little as $5 (if you're lucky) or as much as $50. As a result, centralized exchanges continue to be far more popular.
Furthermore, centralized exchanges are better for new coins because they have a clear orderbook, making the price discovery process easier. It's simple to see why a new currency inventor would want to list on these centralized platforms because they're cheaper and faster than using a decentralized exchange.
Make your own coin doing this
Then there's another thorn in the side. Something that is rarely spoken, but that every good business owner is aware of, is a problem. On these decentralized exchanges, it's difficult to communicate the coin's concept. If you can't share your idea, no one will ever buy the coin concept, no matter how much it costs. It's possible that you won't be able to give your coin away for free!
Many cryptocurrency developers go to considerable lengths to get their coin listed on one of the prominent major, centralized exchanges in the aim of getting their coin's logo and brand in front of the public. Most people, however, cannot afford to do so and must settle with merely listing on a decentralized exchange (DEX).
Both the cryptocurrency inventor and the users will put a lot of money into this project. Countless coins are added to DEXs every day. However, none of these DEXs provide a mechanism to display coin data. Even a logo is difficult to add!
Coins without a distinct brand or home are, in my opinion, doomed to fail.
Everything else will be a waste of time if a coin is not listed on a proper exchange with a clear orderbook, clear historical price chart, login/signup page, wallet system for easy, free deposit/withdrawals, and clear logos and iconography.
Who will buy your token or currency if they can't see the brand or even a semblance of information on it?
Because it does not communicate the token's aim and purposes, while an exchange platform is vital to any new coin or token. As a result, actual price discovery occurs.
The cost prediction of launching a coin
All things considered, starting a coin is usually costly. As stated in this article, it can cost around $5000 (often more) and is dependent on Ethereum traffic. You'll probably elect to put your coin on a DEX after the initial coin creation procedure, which will necessitate multiple on-chain payments to register the coin on the DEX. There's also the issue of supplying liquidity, which is a separate concern. But, suffice it to say, you'll require more than $10000.
A safer approach to start a coin is to list it on a large centralized exchange like Binance, but this will set you back $100,000s - if you're lucky. Even if you have money, large platforms will not just list anything.
Businesses and startups alike are put off by all of these unneeded complexities and never-ending start-up costs. As a result, many people are debating whether or not to launch their own cryptocurrency. Even for the most advanced crypto-savvy entrepreneurs and businesses, it's an unpleasant process.
Every coin creator requires a unique, exclusive marketplace for his or her coin. Having your own digital marketplace allows you to control the generation of new coins, pricing, supply issuance, and, of course, communication. Operating a market or exchange is similar to running your own mini-economy with consolidated data for your users.
For coin developers, an exchange is the natural place to start because it can more readily manage the coin's setup, market, and pricing.
The most important item that coin makers require at the start of their journey is an exchange software package that includes all of the capabilities for currency supply and distribution directly to users' accounts. Each user's coin balance can be managed by the platform. It can also handle the deposits and withdrawals of not only your new coin, but also other coins such as Bitcoin and Ethereum. Of course, because everything is centralized on your own computer, you won't have to pay the blockchain any fees. This lowers the expense of getting started.
Using a readymade crypto exchange script solution to further decrease costs is also a wise decision with a little computer understanding.
Exchange software tools lift the burden on coin creators and crypto projects alike. An exchange works like a home base for the coin: it includes the wallet, price charts, and all mechanisms to buy and sell the coin. Anyone can start their coin with the exchange software for free. Stand-alone coin creation software, on the other hand, will only do 5% of the job of starting a new coin.
Starting a coin with a white-label solution is an option. This is a slang term for a ready-made solution. Because it enables more control and flexibility, the challenging stages of a coin's life cycle can be more readily managed.
Instead of launching the token on the blockchain as a first step, customers can build the token first within the exchange software. There will be no blockchain fees, and the coin production procedure will be simpler. Pre-marketing, communication, and pre-trading of other coins, such as BTC or ETH, will be possible with an exchange platform. It also means that anyone with a user base can provide standard cryptocurrency trading services.
Because it requires less third-party coordination, this technique is a much safer and more straightforward way to run a crypto project and business. Everything is instead managed by a single operator in their own web browser.
Customizability is also much easier with a crypto exchange software package since it allows modifications to be performed on the fly without requiring a programmer's assistance. This implies it will be easy to get your coin and exchange listed on big websites like CoinMarketCap and CoinGecko. Simply alter your exchange's parameters to meet the needs of these coin-listing websites. Because you don't own the platform, customizability is impossible when your coin is listed on third-party exchanges.
By running your own exchange, you not only save money on blockchain setup fees, but you've also streamlined the maintenance of your token, branding, and entire crypto business. As the token or coin project grows, the tokenomic system will become much easier to create.
With exchange script, you can create and price your coin
Finally, launching your coin on your own exchange, which you control, will open up a slew of new commercial opportunities. For instance, once your coin has been priced, you can start implementing reward systems for using your exchange. Other tokens can be used to represent different goods and services. Your customers can invest in these to obtain first dibs on the token's launch. But, in the end, having your own exchange is the best method to price your coin.
How to Start Creating Your Own Cryptocurrency
Start by looking into white-label crypto exchange toolkits and putting them to the test. Free and open-source choices may be risky. Better to handle the third party team on your supervision so you can expect the iteration to be smooth. Ready-made softwares have been tested and are currently in use in the public domain, and they adhere to the crypto open protocol ethos. Good luck and have fun making coins!