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

In this article, we’ll unravel the mysteries of cryptocurrency creation, exploring the processes and technologies behind it and shedding light on where crypto originates. If you decide to make your own cryptocurrency, make sure to use our information only as a starting point. Beyond creating the token or coin, you also need to think about making it a success post-launch. Studying other projects and their launches to see what worked well and what didn’t can help with creating your own cryptocurrency. Creating a new coin can take a lot of time if you develop your own blockchain.

However, to give a more precise connection point, a coin on a native blockchain can cost between $10,000 and $30,000. But certainly, the cryptocurrency won’t be a highly customized one. 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.

Step 3: Select a Blockchain Platform

Currently, thousands of cryptocurrencies are running on several blockchains that act as a support structure for digital coins. ERC-20 belongs to the Ethereum blockchain, while BEP-20 is part of the BNB Smart Chain (BSC). Both networks allow for the creation and customization of smart contracts that enable you to create your own tokens and decentralized applications (DApps). With DApps, you can create an ecosystem that provides more use cases and functionality to your token. If you are simply curious about crypto, then there’s likely no harm in creating your own token. Just make sure to avoid any activities that might be considered as an initial coin offering (ICO) by the U.S.

Most blockchains have an immutable, proven, decentralized cryptographic architecture. Cryptocurrencies are digital currencies that use an encryption method (cryptography) as a means of transaction security. A network of decentralized computer nodes provides their work. It is a database of transactions in a chain of related blocks. Note that the decentralization and anonymity offered by cryptocurrencies open them up to potential abuse.

Option 1: Create your own blockchain and native cryptocurrency

Bitcoin launched in 2009; created by a person (or possibly a group) that goes by the pseudonym Satoshi Nakamoto. As of June 2022, there are slightly more than 19 million Bitcoin tokens in circulation, against a capped limit of 21 million. Almost a thousand new bitcoins are mined each day, bringing Bitcoin ever closer to its maximum finite number. •   As assets, cryptocurrencies are generally stored in digital wallets, commonly a blockchain wallet, which allows users to manage and trade their coins. Even though virtual money has been available for a long time, Bitcoin is the most well-known and successful cryptocurrency, commanding the top spot in the cryptocurrency market.

There are no laws to govern cryptocurrencies directly, only the Digital Rights law covering more aspects of the online sphere. However, you will have to give it meaning through your story because the name you choose will become your brand. So, just as in these two examples, both currencies have a real-world utility that attracts investors and speculators. Therefore, look for a utility or solution that is as necessary for humanity as possible. Head down the page to the Mint section, and input the number of tokens you want to mint.

Should I Issue a Coin or a Token?

Consider factors such as cost, scalability and security when making your decision. A whitepaper is very important for early fundraising and drawing attention from early supporters. There are many things to grasp before you start the complex process of designing your crypto. Just like any digital real estate on the web, you’re going to need to market the new asset effectively to ensure it gains traction and gets adopted by a community.

• Tokenomics are the economics that govern your crypto, like total supply, distribution method, and initial pricing.
• 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 can either manage this yourself or hire a team to do it for you.
• While coins and tokens are considered forms of cryptocurrency, they provide different functions.
• Ethereum, often referred to as the world computer, iterates on Bitcoin’s technology while introducing smart contracts.

Research successful launches by other chains and figure out what they did right and wrong. Compare their post-launch results with their tokenomics and network emissions. Ethereum and Binance Smart Chain are popular choices, but there are many other options to consider.

Your decision: Is cryptocurrency a good investment?

Tokens are cryptocurrencies that do not have their blockchain and operate based on another network. Tokens are issued thanks to smart contracts, which became popular after the launch of Ethereum. Learn more about the process of creating tokens in the article “How to create a token”. During the years of the development of the cryptocurrency industry, many different consensus mechanisms were created. They differ a lot and the consensus mechanism choice is important and determines the way the currency will function.

This process provides some safety assurance for you as the creator and for any potential users or investors. Not every blockchain allows the public to validate transactions or run nodes. The decision between having a private, public, permissioned, or permissionless blockchain is important.

Step 2. Design the nodes

First, check if your cryptocurrency project is legal to execute and maintain in the country you are in. Cryptocurrencies are still banned outright in some countries like China, while in other countries they are strictly regulated. Even in the US, there’s a constant battle going on between regulators and crypto companies. Regulators often keep crypto in a legal gray area, where regulations could suddenly change from crypto-friendly to hostile. Before creating a cryptocurrency, there are a few important considerations to mull over.