With the crypto markets rising in popularity, many people wonder if there are any ways to bank on the trend. Sure, you can jump in the market “head first” by choosing to buy bitcoin, hoping for it to appreciate in value fast enough to make some decent profit.
However, this is not the only way to partake in the industry. Many intelligent entrepreneurs have found more creative ways to be part of the industry, by creating their own cryptocurrencies in efforts of solving a problem or improving an existing solution.
The most surprising fact is that you too can create your own cryptocurrency. The process is much easier than people tend to think, and in the next chapters, we will discuss the exact steps you need to take to build a successful project. Let’s delve in.
Creating a token
The easiest and most popular way to create a cryptocurrency is to build on an existing blockchain. You often see people refer to a new “ERC-20 token”, which is essentially a new cryptocurrency built on the Ethereum blockchain. There are other blockchains to host your token on, but we recommend choosing Ethereum as there is an easy step-by-step process you can follow to build your token easily. Check the video below to get started:
Build a strong team
Now that your cryptocurrency is created, it is time to build the context and the strategy that will help it gain traction in the market. To accomplish this, the founder (you) will need to bring together a group of people with unique skillsets that can help the cryptocurrency increase in popularity and mainstream adoption.
The least you need to get started is an experienced web/backend developer and a marketing/community builder. Too often people tend to focus on the former, while it is the latest that eventually determines the price of cryptocurrencies.
Build the interface
To generate trust in your product, you will need to invest time and money into creating a good-looking website. This may be considered one of your highest upfront costs but will make a huge difference when, later on, you try to get your coin listed on CoinMarketCap and centralized exchanges. Here are a few things to keep in mind:
- Make sure the front-end is aesthetically pleasing and matching your audience’s needs
- Place your main message at the top of the page
- Make it minimalistic (don’t overcomplicate things)
- Let the world know who you are – founders’ anonymity is a huge red flag nowadays.
Create the whitepaper
The whitepaper is the first document a potential investor will read through when trying to research the fundamentals of your project. You can either do this job in-house or outsource it to a qualified party. The latest tends to be very expensive, as many copywriters charge upwards of $10.000 for a high-quality document, so consider making it in-house.
Here are the chapters it should contain:
- Abstract
- The problem you are trying to solve
- The solution you provide (incl. Technical specifications)
- Team information
- Token information
- Project roadmap
Build a community
This is probably the most important point of all of them. It also is the most difficult. Trying to build a community starts by finding influential figures to support your work and always being transparent. Make sure you create social media channels like Twitter (which are popular among crypto investors) and communication channels like Telegram to make the latest announcements.
Facebook groups can also be beneficial and you should bank on existing communities like Crypto Coin Trader, by posting valuable information linked to your project.
Host a token sale/distribution
There are many ways to sell your tokens. Some are free while others are more expensive. The benefit of choosing the expensive option, however, is that you get a marketing boost and an active community to provide liquidity. Here are your options.
- Airdrop (token distribution to eligible wallets) – FREE
- ICO (initial coin offering on a private website) – Somewhat expensive and time-consuming
- IEO (initial exchange offering) – Very expensive but strongly suggested for community growth purposes.
Get listed on exchanges
After selling/distributing your tokens, you should be able to access funds much easier. These funds will now need to be used to improve your community, marketing, and token exposure.
- Start by listing your token on all available Decentralized Exchanges (DEXs)
- Next, if the budget allows, invest in a centralized exchange placement, like Binance, Kraken, Coinbase, or others.
- Finally, make sure you submit your token to CoinMarketCap for review and a potential listing. This point is probably the most important when it comes to the growth of community trust towards your project.
