With the market cap exceeding a trillion dollars and daily volumes in the billions becoming a norm, cryptocurrencies have finally attained a spot of stable presence. It will be hard to remove these digital tokens from today’s economy due to their prominence in different industries and use cases. If you would not believe it, Bitcoin’s price has already raised 75% in 2023 and Ethereum’s by 55%. This crypto development guide from our experts will give you insights into creating cryptocurrencies as a business option and discuss the intricacies involved in doing so. American business tycoon Mark Cuban’s words on cryptocurrencies go like this:
“You’re seeing millions and millions of people investing in crypto because it’s far cheaper and simpler than investing in stocks. I don’t think we fully understand the impact that crypto has had.”
With the motivation this quote has given us, let us delve deeper into our guide.
Table of Contents
- Cryptocurrency’s Prominence in Today’s Market
- Applications of Cryptocurrency Right Now
- General Working of a Cryptocurrency
- Benefits of Developing Your Own Cryptocurrency
- Is Creating a Cryptocurrency a Right Business Decision?
- Crypto Development Guide – A Step-by-Step Approach
- Top Blockchains for Cryptocurrency Development
- What is the Cost of Minting a Cryptocurrency?
- Other Crypto Business Options You Might Consider
- Conclusion
Cryptocurrency’s Prominence in Today’s Market
- As of August 2023, the cryptocurrency market has a capitalization of US$1.16 trillion, contributed by around 1.8 million cryptocurrencies. A point to note here is that Bitcoin ($BTC) and Ethereum’s Ether ($ETH) are the major propellers of the market, with dominance levels of 49% and 19%, respectively.
- Other top contributors to the current crypto market include Tether USDt ($USDT), Binance’s BNB ($BNB), Ripple’s XRP ($XRP), and USD Coin ($USDC). Despite the saturation, new cryptocurrency projects hit the floor every day in the hope of propagating their unique business propositions to the masses with cryptocurrencies on various blockchains.
Applications of Cryptocurrency Right Now
Global Remittances
Cryptocurrencies allow global transactions to be made within a flash through the blockchain. Doing so reduces costs and time associated with monetary transactions using conventional means through intermediaries. Crypto transactions are also accessible to even underbanked regions because they only require a mobile device and a decent internet connection. Areas like the USA, Canada, and the EU allow cryptocurrencies in many ways.
Decentralized Finance
Decentralized Finance (DeFi) is the next application that comes to mind apart from global remittances when we hear of cryptocurrencies. The alternative financial provision offers all operations of conventional finances but with the twist of decentralization that enables users to have complete control of their funds. The DeFi market currently has over US$40 billion as the total value locked.
Virtual Economy
With the advancement of blockchain technology, a virtual economy slowly formed that has now become a huge phenomenon. Applications based on cryptocurrencies and non-fungible tokens (NFTs) have built together a market worth trillions of dollars where billions flow daily. The trend is only expected to stay strong as more real-world use cases adopt the virtual economy model powered by cryptocurrencies.
Privacy Coins
Several cryptocurrencies focusing on privacy have enabled users to transact with a high degree of anonymity and security. Although they offer minimal traceability that might seem useful for malicious individuals, people with adequate capabilities can find crypto transactions, rendering such intentions useless. Yet, these coins are a great option for people wanting to maintain their financial transactions privately and securely.
Tokenization
Tokenization allows people to convert physical and digital assets into crypto tokens, and cryptocurrencies play a big role in facilitating the process. Tokenizing assets and purchasing these tokens typically come at a cost that is paid using cryptocurrency. Applications such as ICOs, IEOs, IDOs, and STOs have emerged over the years, supplementing tokenization as a viable reason to use cryptocurrencies.
General Working of a Cryptocurrency
- A person wishing to transfer some money to another person initiates a transaction through an application.
- The blockchain network broadcasts this transaction to node validators present online at that instant.
- The node validators process and confirm the cryptocurrency transaction. The other person receives the cryptocurrency payment at that moment.
- Validating numerous transactions forms a new block once these transactions accumulate a predefined memory size.
- Validators receive rewards for their efforts in the form of the blockchain’s native cryptocurrency, which is often received as fees from the person initiating the transaction.
“Planning to Mint a Cryptocurrency Representing Your Brand?? Know How to Begin!””
Benefits of Developing Your Own Cryptocurrency
- Brand Recognition: Creating your own cryptocurrency can be an instrument to elevate the recognition of your brand in the competitive market.
- Alternate Payment Option: As an innovative payment method, your cryptocurrency can smoothen trading transactions using fast and secure blockchain networks.
- Loyalty Programs: Cryptocurrency tokens can be ideal for representing loyalty memberships digitally, and rewards can be presented and used online.
- Data Security: Using cryptocurrencies can help your business to safeguard transaction data and provide transparency, thus reducing the possibility of fraud.
- Service Monetization: You can mint your own cryptocurrency to allow people to access your services, thus creating a vibrant economy.
Is Creating a Cryptocurrency a Right Business Decision?
From a business perspective, creating a cryptocurrency might be ideal or unsuitable based on how you plan to use it. In case you plan to use your crypto tokens as a means of payment or loyalty representation, they can yield incredible results in the long run. Otherwise, your project could fall on the list of those ventures attempting to rug-pull.Still, you can very well mint a cryptocurrency without explicit utility through fundraisers supported by a doxxed team, a well-defined ideology, and a meticulously created website. In any way, it will be nice to consider opting for professional assistance to develop your cryptocurrency.
Crypto Development Guide – A Step-by-Step Approach
- The process begins with Defining the Purpose and Goals for your cryptocurrency. A solid purpose and novel benefits can garner unprecedented support for the project.
- You should Choose the Blockchain where your cryptocurrency will be created. A decision should be made based on your business needs, target audience, and technological requirements.
- Now Design the Cryptocurrency Tokens by specifying necessary parameters such as total supply, distribution methods, and divisibility.
- Continue with Smart Contract Development that will help your tokens carry out the necessary functionality within predefined rules.
- Then Test the Cryptocurrency’s Smart Contracts through multiple security audits to ensure the safety of your cryptocurrency tokens.
- It is time to Deploy the Cryptocurrency on the public blockchain by interacting with the necessary APIs and development tools.
- Before launching to the public, ensure to Meet Legal Requirements by creating regulatory frameworks within which your cryptocurrency will work.
Top Blockchains for Crypto Development
If you are trying to create cryptocurrency tokens on an existing blockchain, this section could be helpful. As many blockchains come up with a lot of promises when it comes to resolving problems encountered by existing networks, it becomes necessary to research and select the best. The list given in this crypto development guide is based on the top blockchains presented on CoinMarketCap based on the total value locked (TVL). You can consider creating your cryptocurrency in one of these networks for better business prospects in the long run.
- Ethereum
- Tron
- BNB Chain
- Arbitrum
- Polygon
- Avalanche
- Optimism
- Solana
- Mixin
- Cronos
What is the Cost of Minting a Cryptocurrency?
The cost to mint a cryptocurrency depends on how you plan to conduct the process. While creating one from an online portal might be the cheapest and easiest option, a lot of compromises have to be made if you choose it for business. On the other hand, developing your own cryptocurrency with experts from a company like Blockchain App Factory can streamline your business launch, justifying the money you would spend. Other factors such as blockchain selection, utility provision, marketing efforts, and business partnerships incur considerable expenses, making a great cryptocurrency development campaign cost hundreds of thousands of dollars.
Other Crypto Business Options You Might Consider
Apart from cryptocurrencies, the industry offers business enthusiasts a plethora of options to choose from. These options are mostly applications catering to consumers that make them highly viable in the long term as cryptocurrency adoption is expected to reach new heights in the coming years. While these applications do not involve platforms related to non-fungible tokens (they use cryptocurrencies in entirely different ways), we have presented the top crypto business models you can consider building now.
- Cryptocurrency Exchange
- Decentralized Finance (DeFi) Platform
- Cryptocurrency Wallet Application
- Crypto Fundraising Launchpad
- Crypto Lending and Borrowing Platform
- Crypto Insurance Application
- Crypto Data Aggregation Platform
Thus, we have presented a crypto development guide from a business perspective that you might find helpful. The ascension of cryptocurrencies and blockchain technology to the top levels means the scope for businesses in these domains is only set to increase from here on. If you are curious about creating your own cryptocurrency for business, do not delay anymore! Fill out the form below to start a conversation with one of our experienced professionals.
