In recent years, the world is moving towards new technologies. Speaking of new technologies, blockchain technology is becoming more popular. Blockchain has been implemented in various industries like healthcare, logistics, and other sectors. Blockchain is a ledger where information can be stored digitally. The reason for its popularity is that it is decentralized, comprising high security and transparency. Nobody can modify or erase any data in the blockchain. Experts in blockchain predict that there will be tremendous growth in blockchain technology and it is expected that it will raise up to $40 billion in 2025. 

Cryptocurrencies are created over blockchains. Cryptocurrency came into existence in the year 2009 by introducing the new crypto coin named bitcoin. Now, many coins and tokens came into existence and bitcoin became more popular. There are many popular blockchains available in the crypto market. Crypto tokens can be created using the upcoming and existing blockchains. Tokens can be created using any of those blockchains.

The popular method of raising funds is called crowdfunding. Crowdfunding is a place where the token sale occurs. During the token sale, newly created tokens will be available for sale. There are different types of crowdfunding available which are IPO, ICO, IEO, and STO. So for raising funds too, you should have a crypto token. For creating a crypto token, blockchain is necessary. 

It is a challenging task to choose the right blockchain for crypto token creation. Here in this article, you’ll learn all about choosing the best blockchain platform for creating a crypto token. 

Come, let’s start quickly…

What Is Crypto Token?

A crypto token is a digital currency or a token that has a value of a fiat currency, asset, shares, and more. Using a crypto token, you can raise funds and can trade easily. Because of its profits and usage, many people started creating crypto tokens and trading them on crypto exchange platforms. Crypto tokens can be created using smart contracts. A smart contract is a contract or an agreement that is written as coding. The code involved in the smart contract will be working under the decentralized blockchain network. This code is written using the programming language known as solidity. 

Types Of Crypto Tokens

Crypto tokens are divided into two types. They are utility tokens and security tokens. Let us learn in detail about those types.

Utility Tokens

A utility token is the most popular token which is widely used in blockchain. This type of token is widely used for buying, selling, and trading in crypto marketplaces. Generally, utility tokens mean the tokens which are created from scratch by not backing any of the assets or shares. Utility tokens are the commonly known tokens among business people.

These types of tokens are not like bitcoin because they are not mineable. These tokens are created using the existing blockchains like Ethereum, Tron, etc. Utility tokens are the most widely used tokens because startups and entrepreneurs who wish to raise funds through ICO will create utility tokens. 

Security Tokens

Security tokens are also popular tokens that are created by backing some asset. Assets used for backing can be physical assets like real estate, shares, gold, oil, etc. These types of tokens can be created only after following the SEC guidelines and local government regulations. The regulations may vary for different countries. The common regulations followed in the US are regulations A+, D, S, and CF.  These types of tokens are highly secure and protected. The backing of assets for the creation of security tokens will avoid intermediaries and there is high security. There are three types of security tokens available. They are,

  • Debt token
  • Equity token
  • Asset token

Most Popular Crypto Tokens In The Market

  • Tether
  • USD coin
  • Uniswap
  • Binance USD
  • Shiba INU
  • Axie Infinity
  • Dai
  • FTX Token
  • PancakeSwap
  • Aave

Best Blockchains For Creating A Crypto Token

Presently, there are many blockchains available in the crypto marketplace. Among those, the most popular blockchains are Ethereum, Tron, Binance smart chain, and Waves. All these blockchains are used to create a crypto token. Here I’ll explain in detail about each blockchain.

  • Ethereum

Ethereum is the most popular and the second developed blockchain in the crypto industry. It is a decentralized blockchain that is developed for running smart contracts. Smart contracts are the most required factor for creating decentralized apps and token creation. Ethereum has its own cryptocurrency named Ether and it is also called ETH. Through Ethereum, you can create both fungible, non-fungible, and semi-fungible types of tokens. For the creation of tokens, token standards are very important. The token standards of Ethereum include ERC20, ERC721, ERC1400, ERC1155. You can create fungible tokens using the ERC20 standard. Non-fungible tokens can be created using the ERC721 standard. The semi-fungible tokens can be created using the ERC1155 standard. Here ERC stands for Ethereum Request for comments and the following digit is their proposal identifier.

ERC20 standard is the widely used standard among the others. The reason is that it is the formerly created standard and the ERC20 tokens will be available and listed in all exchanges. So it is optimal to create crypto tokens using the Ethereum blockchain.

  • Tron

Tron is a popular blockchain and has some advanced features. It is an open-source blockchain used for the creation of decentralized apps. Tron was mainly developed for hosting an Entertainment system. It is also used for the sharing of digital content cost-effectively. Tron has its own token called Tronix and is otherwise called TRX. It is also a popular cryptocurrency in the marketplace. It is also an ideal blockchain for creating tokens. It mainly focuses on expanding the Dapps and making them easier for the creation and deploying them.

Tron has its own token standards like TRC10, TRC20, TRC721. Using TRC10 and 20 standards, you can create fungible types of tokens.  Non-fungible tokens can be created using the TRC721 standard. 

  • Binance smart chain

Binance smart chain is the advanced version of the Binance chain. In the beginning, it began as a common blockchain and has become an exchange. Binance was launched in April 2019. Binance chain was introduced to facilitate fast and non-custodial trading. Binance smart chain includes an Ethereum virtual machine(EVM) where Ethereum based applications can also run. Binance smart chain works like the Binance chain. It works on the Proof-Of-Stake algorithm.  Using BSC, you can create tokens and also trade them.

Binance smart chain has its token standard namely BEP20 and BEP721. Here also using BEP20, fungible tokens can be created. Non-fungible tokens can be created using the BEP721 standard. 

  • Waves

Waves is an independent blockchain and it is becoming popular in the crypto industry. It is a blockchain where only fungible types of tokens can be created. It doesn’t have any token standards. Using waves blockchain, you can create tokens and trade them without a smart contract. Waves blockchain is developed for the advancement of traditional blockchains. There are nearly 78 tokens available in the waves blockchain.  

How To Choose The Best Blockchain For Creating Crypto Token

Before choosing the ideal blockchain, you should consider some parameters that will help you with crypto token creation. They are

  • Coding Used
  • Popularity
  • Kind of Network
  • Gas fee
  • Concordance mechanism and algorithm used.

How To Create The Crypto Token?

For crypto token creation, you should choose the blockchain where you’re going to create. After that, some factors should be considered for the effective creation of tokens. They are

  • Type of token 
  • Token symbol
  • Token decimals
  • Initial supply of tokens
  • Total supply
  • Choosing the blockchain
  • Token’s features(Mintable or burnable)

Wrapping Up

As the crypto industry is moving through the path of innovation and many new blockchains are introduced every day. Each blockchain is evolving with new features and advancements. There are plenty of blockchains available in the crypto industry. So, before choosing the blockchain for your token creation, you should consider the above-said factors. Creating a crypto token is a tedious process and will take longer to create. So, do research and create tokens from the reputed crypto token creation service provider in the industry. They will create the tokens at an affordable cost. For creating the tokens in the best blockchain, you can hire a team of experienced and skilled blockchain developers from the industry. They’ll guide you with the crypto token creation on the ideal blockchain in the industry.