How To Launch A Cryptocurrency On A Blockchain Network?

Since the introduction of Bitcoin, many people have tried to dip their hands in the crypto market and launch cryptocurrency on their own. And why wouldn’t they? It’s a fairly ambitious idea, and if you get everything right, you may become as popular as Satoshi Nakamoto in the future. 

However, the cryptocurrency launch process – this is where most people feel like they don’t know what they should do. To be honest, it’s a lot of work too, you know – choosing the right blockchain technology. Defining the purpose of your, managing security, marketing, etc.  

So, through this guide, we’ll try our best to tell you how to make a successful digital currency launch, without overloading you with tech jargon. Let’s begin. 

Launch Cryptocurrency – The Planning Phase 

Before you get into the crypto token creation and development phase. It’s important to create a roadmap with a clear purpose. So, ask yourself regarding how you want to use these coins.? 

• Do you want to use it as a utility token to grant access to a new platform? 

• Will it be an asset-backed token tied to something of real-world value? 

• Or are the tokens going to be used to let holders vote on specific project decisions? 

Each of these types will serve a different role. So getting the right one will help your project gain a new direction.

The next step is to choose a consensus mechanism, which will determine the verification and validation process of your coins. For example, proof-of-work is the most secure option in this aspect while being more energy-intensive and less environment-friendly.

Proof-of-stake, on the other hand, is much more efficient and ideal for creating scalable crypto coins, like ETH. The choice, here, will depend on what your goal is – speed, security, decentralization… or a mixture of all three. 

The token distribution process is all about how and who you want to share the introductory batches of your crypto coins. Some projects focus on beginning with an ICO (initial coin offering) while others airdrop their tokens to get people to talk about their assets.

However, no matter what you’re planning, always be transparent to your investors and create a fresh and well-planned whitepaper for them. Otherwise, they won’t buy your coins. 

Finally, you can finish up the planning process with smart contract creation. Which will make your coins work efficiently on a blockchain network. These assets are a type of self-executing agreement that can automate rewards, and manage transactions. And make sure that the token rules you’ve created are being followed.

However, while you’re creating them, make sure there are no flaws in your codes, and even if there’s a risk of that – audit the contracts again to flush them out.  

Choosing The Right Network 

Picking the right blockchain to launch cryptocurrency isn’t just a technical decision, it’s also about focusing on the transaction speed, blockchain network security, and scalability fees.  

So, how do you start? 

Ethereum is the OG and the most ideal option for every project, as it’s widely adopted, battle-tested, highly scalable, and packed with different developer tools. However, if the network is too congested, the transaction fees on ETH can get ridiculously high sometimes. 

Binance Smart Chain, on the other hand, is cheaper, faster, and much more user-friendly than ETH. Nonetheless, it’s also more centralized, so there’ll always be a middleman hanging over your transactions… which may not be a bad thing for some but a deal-breaker for others. 

Solana is all about speed. Thanks to its excellent structure and build, it can process thousands of transactions in mere seconds. So, it’s perfect for projects requiring scalability. However, due to lower level of flexibility, it experiences outages sometimes, which should be considered closely if network uptime is important for you. 

Creating The Cryptocurrency 

While crypto token creation isn’t about playing with complex threads of web anymore (thanks to standardized frameworks), it’d still require a proper understanding of smart contracts and blockchain technology. 

Firstly, you’ll have to focus on smart contract creation. These will govern everything, whether it’s completing transactions, offering ownership rules to someone, or completing a project. You can write these contracts by using languages like Rust (used for Solana) and Solidity (for ETH-based tokens). 

Now, it’s time to define the token standard. If you are launching your crypto on Ethereum, it’s best to choose ERC-20, as it is widely supported. So, it’d be easier for you to integrate your coins with different types of wallets and exchanges.

ERC-1155 and ERC-721 might be better if you are considering launching an NFT or a coin with advanced features. However, BEP-20 should be your go-to option if you are using Binance Smart Chain.  

After you’ve coded and tested the contract, it’s time to start with the next step – crypto token creation or minting them into existence. This would involve setting different parameters, including – 

1. Total supply of the cryptocurrency.

2. How divisible the token is.

3. Whether you can create or mint new tokens.

Once done, you can launch your tokens by using blockchain technology on the network you have chosen. And if it’s live, you can start transferring the coins, trade them, or start using them as well.

However, there’s no undo button after you have processed the cryptocurrency launch. So, if there’s a bug or something wrong with the code, it’ll stay on the blockchain forever and can become a point for exploitation by hackers and other users. 

The Role Of Initial Coin Offering 

If you have an idea about creating a brand-new cryptocurrency but don’t have the funds to complete the project, initial coin offering (ICO) can be an ideal option for you. In this case, you can let your investors buy tokens before launching them in the market – and, in return, they’ll get early access to the coins, the platform, and other benefits related to it. 

However, if you’re launching an ICO, only thinking about selling tokens won’t cut the bill. You’ll need to a strong blockchain funding project, backed by a whitepaper, which should have a clear roadmap of the cryptocurrency launch process. It’s important to convince investors that your coin has the ability to make the traders’ and users’ lives easier by making transaction processes faster, more secure, or lowering the fees.  

Then, there’s also the factor of determining the token distribution process. Some people tend to sell their tokens at a fixed price while others offer tiered pricing or discounts for early buyers. So, you need transparency about three things – the number of tokens available at the beginning, where to launch them, and if your development team is keeping a part of it or not. 

Nonetheless, the success rate of ICO usually depends on how much hype you’ve created surrounding it. Developing a community around your project and marketing it through social media, partnerships, and forums can bolster your fundraising efforts even more. 

The Bottom Line 

Launching your own cryptocurrency on a blockchain network is certainly an exciting project for every tech entrepreneur. And while it’s not as easy as most people consider it to be, it’s still doable if you have good development and marketing teams.