Crypto Token Creation Ideas 2023
Know how to generate ideas on crypto token creation to make profits in this existing bull market
Crypto tokens are the future way of trading in the crypto market. While bitcoin arrived in 2008, many of them believed that it will not get familiar and then the Ethereum. Initially started off the journey as a token, ethereum is now the second-largest crypto token in the current market. But do you have yourself a question — What to create and how to create a digital token for your business? No worries. Crypto token is one of the best ways to enter into the cryptocurrency business. You will never need any programming or developing knowledge to start this crypto token creation.
In this blog, let me help you swim across various dimensions and know exactly what a crypto token is its types, crypto token, major crypto tokens, and how to choose the best token for your business.
Crypto token vs Crypto coin
Before getting to learn about the crypto tokens we should, first of all, learn the differences between the crypto token and the crypto coin. There is not much of a difference between a token and a coin. The main thing is that the digital coin has one blockchain whereas the token does not carry one blockchain along with them. They rely on blockchain development for their protection. There are some other differences you need to know.
Tokens are a store of value and digital coins which do not have a physical existence during a transaction. All the transactions of digital coins are made in a digital medium. You can store them for a long time and their existence cannot be denied. But when it comes to value, its value increases as a matter of time. You can swap them for some other coins later. The thing is that you cannot stake and leverage the number of coins that you hold like Fiat. Only the value changes and not the count.
The token is a different story. They are attached to any other blockchain as they do not have a separate blockchain on their own. For that, they should be paying a fee to the blockchain ecosystem. For instance, if a token is connected to an Ethereum blockchain, then the particular token should pay an ethereum fee to hold on to that blockchain. Similar works for NEO or DASH.
Anyone can create their own token by liking the existing blockchain. For example, a person can create a token and link it with the Ethereum blockchain and hence called an ERC-20 token. But in the case of the coin, it needs a separate blockchain, coin listing pair, etc.
The need for Tokens
The need for the tokens is of multiple uses. In most cases, the token is used to get in line with the decentralized applications or the dApps. The developers would be deciding how many units are required to be made and where they need to be created. In that sense, the developer needs to pay a particular amount as fees to the blockchain ecosystem. Later they could be converted to their specialized function to generate a source of income on the basis of the token.
Tokens are also used for Asset trading. That is known as Asset tokenization. You cannot sell the smart contract on your house. But keeping that as capital, you can create tokens for your house and sell them online based on shares and generate capital.
Type of tokens
Three types of tokens — Utility tokens, Common tokens, and Security tokens. These three are the major types of tokenization that have their subparts like Asset tokenization, etc.
- Common tokens are the ones which is more essential for the capitalization means. They do have a minimal purpose with lesser focus. They have created tokens for common means and to be listed in the exchange.
- Utility tokens — As the name suggests, utility tokens are the ones that are used for specific purposes or utilities. They cannot be used for direct investment like the security tokens but they can be used for specific purposes of tokenization. It can coexist with the platform token for its security purposes and the utility tokens can assist the platform tokens can help them for their purpose.
- Security tokens — These are the tokens that are created on the basis of security. They include bonds, debentures, shares, and other properties of either physical or digital form. If it is a physical property, the security would be converted into tokens by signing in the smart contract. The asset would be segregated into tokens and the investors can invest in that particular token.
There are several other token creation techniques but these are the prime tokens that most entrepreneurs who want to start their token in the cryptocurrency exchange would love to start.
Speaking about the blockchain, there are two major blockchain ecosystems where you can kickstart your token creation and management. Yes, it is Ethereum and Tron blockchain. These two are the most sought out
Ethereum and Tron
Despite there being various blockchains where a startup can initiate a token, the most trusted and early players in the blockchain field are the most preferred ones. In that sense, Ethereum and Tron token is the most sought blockchain because of their infrastructure and their perfect functionalism. Ethereum tokens are those tokens that are built on the Ethereum blockchain. Similarly Tron token is one that is built on the Tron blockchain. The only difference is their token standards. Ethereum has more than 10 token standards that differ among the unique perspective with the most reliable on the ERC 20 token. Similarly, Tron tokens too have their unique standards — TRC10 and TRC 20 based on the requirement of the token.
How to choose?
It is a good decision that you have decided to initiate token creation using either Ethereum blockchain or through Tron blockchain. But with less knowledge and expertise you cannot do it all by yourself. All you need is a solid team that helps you to create tokens on the standard of using ethereum or Tron blockchain in a professional way without any technical glitches. In that sense, there are various token development software providers in the current scenario but only an experienced team can provide you with the best services regarding token creation and the generation of profits. So, it is best to reach out to the best Ethereum token development company for your token creation services.
So, by this blog, you would have known about the crypto token creation ideas in 2022. If you are in the idea of starting a token of any sort most probably Ethereum or Tron, then it is best to reach out to the best crypto token development company and create more revenue for your business expansion.