How to Create and Launch Your Own Cryptocurrency: a Step-by-Step Guide

In January 2019, BitTorrent launched a token sale on Binance Launchpad and raised $7.2 million, hitting the hard cap in less than 15 minutes. If you have decided on ICO, go ahead, and check our previous article on how to market an ICO. You can try forking Bitcoin manually or automatically with a fork generator like ForkGen.

There are plenty of developers and companies that can do the technical work and then hand you a finished product. The creation of coins requires more resources and knowledge compared to the creation of tokens. This is because the creation of a blockchain requires many resources and skills, while tokens are built on the existing blockchain. The main distinction between coins and tokens is that coins function autonomously and have their own blockchain, whereas tokens rely on an existing blockchain platform. Coins are used as cash, but tokens serve several functions other than currency. The Ethereum network enables users to easily create their own cryptocurrency tokens without coding the entire system from scratch and without borrowing from the code of other coins.

Your Assistants: Popular Cryptocurrency Platforms

This means those owning cryptocurrencies have a higher opportunity to benefit from them. Although, some countries and jurisdictions have partly or wholly banned cryptocurrency. You can read above on the legality of cryptocurrencies for some major countries in the industry. Once you have reached this step, you might as well want to give it value. To do so, you will need investors, and to acquire investors, you can approach an Initial Coin Offering (ICO) strategy or an Initial Exchange Offering (IEO) strategy. The great advantage is that you will be autonomous and may bring significant innovations to Blockchain technology.

Having the necessary technologies that provide the most security with the most simple of user interfaces can help make or break any developer’s chances of success. You should now see that the tokens have been minted and sent to the wallet that created the smart contract. To understand and map out the process of creating your crypto, you’ll need to define its features from the beginning. If you’re looking to push the limits of what a coin or blockchain does, creating a coin with its own blockchain would likely be better. Creating a new blockchain and coin is certainly harder than issuing a crypto token. But if done right, it can bring lots of innovation and new possibilities.

How to Create a Cryptocurrency?

You can either use established code to create tokens yourself or pay to use a coin creation service. Sidechains are another popular choice as they provide more customization with the main blockchain’s benefits. You can decide to use the source code of another blockchain to create a new blockchain and native cryptocurrency. Pursuing this option still likely requires technical knowledge, as you may choose to modify the source code to satisfy your design objectives.

If you don’t want to be dependent on any of these platforms, or they don’t offer the functionality you need, you can try to build your own blockchain from scratch. The open-source nature of the cryptoverse makes it a relatively easy task. However, to give a more precise connection point, a coin on a native blockchain can cost between $10,000 and $30,000.

Step 8: Promote Your Crypto and Build a Community

To do this, you still need a high level of blockchain technical and coding knowledge. The success of your project will also rely on getting new users to your blockchain network, which is a challenge. A cryptocurrency, also known as crypto, is a type of digital asset with multiple use cases. It’s primarily a way to transfer value between people digitally, including monetary value, ownership rights, or even voting privileges. Crypto differs from other digital payment systems because of its roots in blockchain technology. This basis gives cryptocurrencies more freedom from central entities like governments or banks.

A consensus mechanism is a protocol that verifies transactions before adding them to a blockchain. The two main types of consensus mechanisms are proof-of-work (PoW) and proof- of-stake (PoS). The former is used by most popular cryptocurrencies like Bitcoin or Litecoin.

History of cryptocurrency

He took a different approach and launched Bitcoin in early 2009. Okay, we’ve worked it out; hopefully, you’ve got the key idea. But anyway, to create your cryptocurrency from scratch or with ready-made solutions, you have to dive deeper.

• An engineer filled with enthusiasm might want to write all the code from scratch.
• Is your whitepaper sophisticated, specific and different, yet simple enough to understand?
• Okay, we’ve worked it out; hopefully, you’ve got the key idea.
• Sidechains are another popular choice as they provide more customization with the main blockchain’s benefits.
• The next step is downloading the required software and setting up the nodes.
• You should come up with something of your own (something unique) to survive in the cryptocurrency market.

By contrast, Bitcoin created a financial system of limited supply with new coin mintage designated at strict ten minute intervals. This system ensures that a centralized authority never alters Bitcoin’s supply against its mathematically-based parameters to debase the currency through mass-inflation. how to make your own cryptocurrency coin When you create your cryptocurrency from scratch, you get the best control over it, especially the consensus mechanism. And if the network is shut down, the smart contracts your token is built on will also shut down. You will have little to no autonomy and always depend on the hosting blockchain.

Is It Profitable to Make Your Own Cryptocurrency?

Therefore, users choose a convenient and easy-to-navigate interface for their transactions. At this stage, it is necessary to plan cryptocurrency tokenomics. The cryptocurrency will have a lower value if too many assets are circulated. The two most common mechanisms are Proof-of-Work (PoW) and Proof-of-Stake (PoS). The White Paper is becoming something between technical documentation and a marketing tool.