We’ve figured out for you how to spend your own token. Without writing a single line of code.
At the time of this article, there are between 11,000 and 20,000 tokens and cryptocurrencies. The vast majority of these are tokens, and few are considered real cryptocurrencies. We will not deal here with the differences between these two terms. However, let’s try to figure out how such a large number of assets came about. Is each token an independent blockchain?
Not always. Most of the tokens will operate on the Ethereum blockchain. According to Nomics, there are more than 12,500 tokens on the Ethereum network. But only slightly more than 4,160 of these tokens have at least some trading volume. In second place is the Binance Smart Chain with over 8700 tokens. The choice of blockchain is a personal decision of the developer. The networks differ both in commission costs and in the size of the community.
It is important to understand that a token created on one network will not work on another. The only way to “transfer” a token is to use so-called “bridges”.
Create your own cryptocurrency: What do you need?
- Time (less than an hour)
- Browser extension of metaMask crypto wallet, Coinbase wallet or trust wallet (in our case MetaMask)
- Balance on the wallet (if you want to create a token for the test for free, you can skip this point).
How can you create a cryptocurrency (token)?
Ideally, of course, you should understand the basic mechanisms of the token you want to create. You should also have an idea of what this part of the code is responsible for. But let’s say you don’t want to learn the basics and it itches in your fingers to create a token as quickly as possible and without the least cost.
Since the development of the blockchain market has already more or less begun, enthusiasts have launched a whole range of platforms for creating tokens. This means that there are several websites that are willing to do all the technical processing for you without registration. Here are some of them:
Attention! The editors are not responsible for the decisions you make on the above websites. Please check if the website is secure before creating a token there. The current status is only a snapshot and does not guarantee the future quality of the services.
Before you start creating a token, you need to sync your wallet with the website. It is assumed that you have already installed them in your browser. The wallet is needed so that the website can independently create a smart contract through which the token is issued. This service is subject to a fee if you want to create a real token. However, you can also try the service for free first.
To sync with cointool.app, we click on the button in the upper right corner of “Connect Wallet”. The wallet window opens. We agree to the terms and connect. Next, we select a network for the token. Choosing a network and the cost of creating a cryptocurrency (token)
The blue section of the form on cointool.app is the selection of the blockchain network. You already know the difference from the section “Is each token an independent blockchain?”. If you are unsure, you can read it again.
At the time of this article, creating a real token over cointool.app costs a considerable sum. More specifically, 0.1 ETH, which is currently equivalent to about 400 US dollars. What is the difference between a real token and a test token? Once you’ve created a real token, you can offer it on the marketplace and release it for trading. It is unlikely that it is possible to create a listing with a test token.
The process of creating a real and a test token is the same. Even in a test scenario, you’ll have to pay a fee (for free tokens). In our case, we will look at a test case for creating an ERC20 token on the Ethereum testnet called Ropsten. Create your own cryptocurrency: Connect the wallet to the network
By default, MetaMask connects to the mainnet and displays the corresponding account balance. However, we have to switch to the Ropsten Testnet. Of course, you can also choose other chains: Kovan, Rinkeby or Goerli.
To connect to the testnet, open MetaMask and click on the “Ethereum Mainnet” button at the top. Then select “Ropsten Test Network” from the drop-down list. If you have cryptocurrencies on MetaMask, your balance will now be reset. But don’t worry: your wallet has only connected to another network. You can use the method described above to reconnect to the old network and your balance will be displayed again.
If you are connected to Ropsten, you should reload the website cointool.app and select the selected “ETH Ropsten” network at the top right. If you don’t see this, check if your wallet is connected to the website. Crypto Wallet – Source: BeInCrypto.de
So, we are connected to the testnet – but how do we create the token now? The last point remains – the creation of free tokens.
Here are some services that issue free tokens for trial use:
Select one of these pages. Once you are on the website, enter your public address. You can get them by opening MetaMask and clicking on the “Account 1” column. Once you’ve sent a request to receive free tokens, you’ll have to wait a short time. The test ETH will be in your wallet within 5-10 minutes.
Attention! The pages do not show a successful ETH shipping! If you send several ETH applications, your wallet will be blocked for 24 hours. Just submit your application and wait. Within 5-10 minutes, the wallet will update the account balance itself. Specify settings for the cryptocurrency (token)
Once you have received the test ETH, it goes to the creation of the token itself. The form on cointool.app contains the following fields:
- Token Name – the name of the token (example: Bitcoin, Ethereum, Dogecoin)
- Symbol – token ticker (example: BTC, ETH, DOGE)
- Initial offer – the maximum number of tokens at the beginning
- Decimal places – Calculation system (i.e. how exactly the token can be shared. For example, BTC is divided by 8 decimal places and ETH by 18)
- Burn – the devaluation of tokens
- Mint – the ability to create additional tokens (the quantity is added to the initial offer)
- Pause – the ability to stop all token operations (in case a critical vulnerability is discovered)
- Deflation – for each transaction with a token, a commission is charged, which is then destroyed
- Super deflation – accelerated deflation function
Filling in all fields is optional. In our case, we called the test token Paprika Coin and the ticker PPK. We left the rest of the settings that way. We pay for the creation of a smart contract
Once you have made all the necessary settings, scroll down and click on the “Create Token” button. A window will open with a wallet and a request to send ETH to create a contract with your token. In our case, it took 0.01 test ETH.