Cryptocurrency is trending right now. Capitalization has reached its peak, and more and more people are exploring the digital asset market. Some are ready to make money from speculation, holding coins, staking and farming. Others are trying to create a token and use it to implement complex projects.
It may seem that only programmers with a budget of millions of dollars and years of painstaking work can create a token. But this is not the case if we are talking about a token and not a cryptocurrency with a personal network.
Let's talk about which platforms allow you to create a digital coin and which blockchain to choose. In addition, we will answer the main questions: how much does it cost, how to attract investors.
Choosing a platform
The three most popular are Ethereum, Binance Smart Chain and Polygon. Then come Heco, Arbitrum and OKchain. There are other, more affordable options. However, low commissions in alternative services indicate weak security. If the project really starts to develop and the tokens are stolen, this will lead to collapse. Therefore, let's focus on the leaders.
Ethereum is the most popular and reliable network
The platform is chosen by hundreds of startups. Perhaps this is happening in hopes of replicating the success of the Golem Network. They raised $8 million in 20 minutes.
The main advantage for which you should choose a network is quick access to a huge audience. Ethereum users number in the millions, and everyone has money. In addition, they are ready to invest them in a promising project.
However, the ETH network is in the process of transitioning to a POS transaction processing algorithm. Currently can handle 3,200 trades per second, making payments expensive. In particular, for each transaction you will need to pay at least $45 in commission.
Binance Smart Chain - the largest cryptocurrency exchange network
The advantages of this platform include high throughput and an intuitive interface. In addition, the main “fuel” in the network is the BNB token. It has grown from $40 to $600 over the past year. All the created coins also followed him upward.
Once the digital asset is created, it will be available to millions of users around the world. If a project has value and uniqueness, then they can invest in it from the first minutes of its existence.
Polygon is a convenient network for ordinary users
The platform was launched in 2022. The main token of the network is Matic, whose price is around $1.5. Polygon is an Ethereum-compatible second-layer sidechain running on the POS algorithm. Let us remind you that Ethereum is only at the stage of transition to this method of confirming transactions.
The network developers were able to preserve all the advantages of ETH. In particular, it is a high degree of decentralization and thousands of transactions per second. In addition: hundreds of DeFi projects have already been developed on this platform. Here are some of them: NFT Aavegotchi, F1 Delta Game, Artvatars and other popular platforms.
The main advantage of using Polygon is that anyone can create a token. This will literally take 5 minutes. Let's look at this network as an example.
What are NFT tokens
The term "NFT" stands for Non-Fungible Token.
While fungible objects are identical to each other (for example, a $1 bill can be exchanged for another $1 bill, so the dollar is a fungible asset), a non-fungible object is unique. For example, the painting “La Gioconda” by Leonardo da Vinci was created in a single copy; it is an irreplaceable object. Although there may be millions of copies in the world, they are all worthless compared to the original.
NFT is the same thing, but in the world of blockchain. Like cryptocurrency, such a token can be sold or otherwise used. Since each of them is released in a single copy, NFTs can be very rare. Some content is associated with the token, for example, a picture, audio recording or text. It should be noted that another difference between NFTs and other cryptocurrencies and tokens is that each unit is integral and cannot be divided into parts. You can buy 0.001 BTC, but you cannot buy 0.001 NFT, only the entire object.
Create a token in 5 minutes
For this we will use the decentralized service Dodo Finance. In addition, you will need to register a MetaMask wallet. Next follow these instructions:
- log in to Dodo Finance and click “Connect wallet”;
- follow the prompts;
- then select the network (in our case Polygon);
- open the “Tools” item and click “Create token”;
- Fill in the details (name, total coin supply, ticker, decimal).
Click "Create". The token is ready. Just like that, on the designer in a few clicks.
How much does it cost
After creation, you will need to pay a commission of 1 Matic (the main coin of the Polygon network). Its price is currently around $1.5. When the payment is successfully completed, all tokens will be credited to the balance in the MetaMask wallet.
Create your own NFTs
Today anyone can create a non-fungible token in order to make money on it. It does not require any deep technical knowledge in programming or blockchain development. The most popular (due to its simplicity) platform for working with NFTs is called OpenSea. Here's how you can use it to create your own unique blockchain asset:
- Install the Metamask extension for the Chome browser, create your own ETH wallet.
- Go to the OpenSea website. Click on the Create -> Submit NFTs button in the upper right corner and connect using the Metamask wallet by entering the password.
- Prepare the file. Basically, it can be anything - even a photo of your dog. Click Create a new collection.
- To create a collection, you need to specify its name and upload a logo; a description is not necessary; it can be filled in later.
- Now it's time to create an object in the new collection. Most actions require confirmation in the Metamask pop-up window, but you will not incur any costs at this stage.
- Upload an object (for example, a photo). Supported formats: JPG, WEBM, OGG, GLB, PNG, MP3, WAV, GIF, MP4, SVG, GLTF. The maximum size is 100 MB.
- Enter the name of the object.
- If desired, provide additional information: a link to detailed information, description, settings. You can make content “unlockable” so that the item can only be opened after it is purchased.
- Click Create.
Ready. You now have your own NFT that can be listed on the open market and sold for a fixed price or through an auction.
Create your own NFTs
How to add a coin to the exchange
In order for users to be able to purchase a coin, a pool of funds will need to be created. This is done on Dodo Finance through the “Tools” tab in the “Create pool” item.
Choose your own token and any stablecoin (USDT, USDC, BUSD). Set the price. For example, 100,000 coins would be worth $1,000. Thus, the price of one token will be $0.01. To prevent the price from skyrocketing when buying and falling to zero when selling, add liquidity. All this is done through the MetaMask wallet.
Now anyone can purchase the created token. Using the same principle, coins are added to other decentralized exchanges.
Creating coins on other networks is almost identical. The differences are in technical characteristics, fees and commissions.
How to List on Binance and Other Major Exchanges
This information is available in the FAQ section of the marketplaces. In order for a coin to begin trading on the largest cryptocurrency resources, you will need to create a project document (White Paper). In particular, all problems that the asset solves should be described there. Also include technical information and founder details.
The project will be subject to moderation. Management will then make a decision on listing.
How to buy other people's NFTs
In addition to how to earn NFT tokens, you can buy existing ones for further resale. It’s convenient to do this on OpenSea or on another marketplace - their number is growing every day. Examples:
- Rarible
- Mintable
- Async
- MakersPlace
- KnownOrigin
- Mintbase
For example, on OpenSea you need to go to the Explorer section to see all the available offers. They are grouped into categories for convenience. The filters on the left will help you leave in the search results only tokens related to a specific project, or sold for a certain cryptocurrency, or only those that are sold through an auction, etc.
By clicking on the desired item, you can view detailed information about it and also make a purchase. The money will be debited from the connected ETH wallet, and from now on the token is your personal property. Do not forget about copyright, which is strictly observed here: you can transfer and sell an object as much as you like, but each time part of the income from its resale will be allocated to the author.
Thus, for content creators, NFTs are a lifelong source of passive income.
How to attract investors
After the launch of the digital coin, the official website and the addition of a liquidity pool, the token will appear on the Defi platform. In addition, the coin must be added to the CoinMarketCap database. Thousands of potential investors will see the currency there.
Also, to attract investors, use advertising means, publish in the media and sources with a potential audience. Well-developed, useful projects always find a response and receive the necessary funding. Although even meme coins can have a capitalization of millions of dollars.
How can you make money on NFT tokens?
The most common way to make money from NFTs is now through gamified platforms, where you can create your own virtual items and then sell them, and the value of the item directly depends on how rare the properties it has.
As an example, the most famous gaming project with NFTs, CryptoKitties. How does he work:
- Each virtual kitten that is in the game represents an indivisible and unique ERC-721 token (NFT).
- Participants buy kittens for further crossing. Kittens can be either the cheapest (without rare properties) or very expensive (rare).
- Participants cross-breed their existing kittens to create unique new pets. There is a chance that they will have rare properties and can be sold at a high price, recouping the initial costs.
NFT tokens CryptoKitties
This concept was extremely popular with users, and soon after its launch, the project generated so much activity that it influenced fees on the Ethereum network. The prospect of creating more valuable ones from cheap assets and making money from it appealed to many. In 2022, one of the cats was sold for 600 ETH (at that time about $600, today – over 1 million).
Or another example - CryptoPunks. The company has created 10,000 unique collectible tokens. Initially they were given away for free, but now they are being sold on the secondary market. All “punks” are presented on the official website of the project and differ, among other things, in the background, which indicates their status. Blue background – approved. Red background - for sale by owner. Purple background – have an active bid.
NFT tokens CryptoPunks
The Twitter account @cryptopunksbot publishes the largest cryptopunk sales transactions. The average purchase price for the last 12 months is $24,000.
Punk 6326 bought for 42.99 ETH ($77,711.30 USD) by 0x73347b from 0xd387a6. https://t.co/hoWn5nuGdv #cryptopunks #ethereum pic.twitter.com/0IMWZ9MhEh
— CryptoPunks Bot (@cryptopunksbot) March 15, 2021
In March 2022, crypto enthusiasts “found” another project - CryptoCats, which actually repeats CryptoPunks, but here instead of portraits of people, the objects are pixel cats. It turned out that since 2022, 200 kittens out of the existing 630 remained unsold. As soon as this became known, most of the cats were sold out in two hours, and the cost reached $200 per unit.
NFT tokens CryptoCats
