How to create a cryptocurrency token?

Could you elaborate on the steps involved in creating a cryptocurrency token? As a financial practitioner, I'm curious about the technical aspects and regulatory considerations that must be taken into account. I understand it involves choosing a blockchain platform, writing smart contracts, and complying with relevant regulations. But I'd like to delve deeper into the specifics. Could you break down the process into distinct steps, such as selecting the token type, developing the codebase, conducting a token sale, and ensuring compliance? Additionally, could you also discuss any challenges or best practices that you've encountered during your own experiences with creating cryptocurrency tokens?