Virtually anyone can develop a cryptocurrency, even almost for fun. But launching a cryptocurrency that is successful and gainful generally demands commitments of time, money, and various resources. Also, you’d require to possess advanced technical knowledge. Meanwhile, making cryptocurrency is an easy aspect. However, maintaining its growth over time usually becomes much more challenging. Notwithstanding, we’ve disclosed how to make a cryptocurrency herein below.
Furthermore, if you feel curious about crypto, then you can likely create your token. Just ensure to avoid any activities considered as an initial coin offering (ICO) by the U.S. SEC (Securities and Exchange Commission). You don’t want to accidentally infringe on any federal securities laws.
Hence, carefully read through the guide below to learn how to make a cryptocurrency for yourself.
How To Make A Crytocurrency
To create your crypto you may probably need to learn how to code or not. Meanwhile, they exist different approaches you can follow to build your crypto token. We’ve highlighted and explained to them while we leave you to choose your best fit.
However, know that the majority of these choices need at least some technical computer knowledge, plus financial and human resources. Hence, the most technical options afford the greatest degree of customization, which is worth the expense for some cryptocurrency developers.
Option 1: Establish Your Own Blockchain And Native Cryptocurrency
One great way you can build your native token includes writing your code to create a new blockchain that supports a native cryptocurrency. Native coins, by definition, have their blockchains, and we considered them superior to tokens of digital currencies that run on other blockchain networks.
Furthermore, considering this option usually entails that you’d have to undergo extensive technical training to develop coding skills and a fundamental understanding of blockchain technology. But, it consequently affords the highest amount of design freedom.
So, if you want to develop a cryptocurrency that is completely new or innovative in some way, then creating a blockchain to support that coin is possibly the best option. Follow the steps below to fully harness this option.
#1. Choose a consensus mechanism.
We also know a blockchain’s operating protocol as its consensus mechanism. The most generally used consensus mechanisms include proof of stake (PoS) and proof of work (PoW).
#2. Design your blockchain architecture.
You have to decide on the type of blockchain architecture you crave. Whether you want it to be private or public? Permissioned or permissionless? This all depends on your reasons for making your cryptocurrency.
#3. Audit your new blockchain and its code.
Many crypto developers decide to hire specialized blockchain auditors to survey their blockchain’s code and pinpoint any vulnerabilities.
#4. Verify legal compliance.
We recommend you pay for expert legal advice before you start minting any new cryptocurrency. Legal professionals will verify that your cryptocurrency complies with all relevant laws and regulations.
#5. Mint Your Cryptocurrency
Finally, you can now mint your new crypto. The amount of coins you choose to issue initially depends on you. You can choose to mint the complete supply of coins in one batch, or slowly increase the coin supply over time as new blocks begin to add to the blockchain.
Option 2: Modify The Code Of An Existing Blockchain
Another option for developing a crypto coin for yourself includes using the source code of another blockchain to create a new blockchain and native cryptocurrency. Deciding to use this option will still require technical knowledge, as you may prefer to modify the source code to suit your design goals.
Meanwhile, after downloading and modifying the source code of an existing blockchain, you still need to consult a blockchain auditor and collect professional legal advice. Afterward, you can now mint your new cryptocurrency.
Option 3: Create A New Cryptocurrency On An Existing Blockchain
You can develop a new cryptocurrency without first establishing or modifying any blockchain. Networks like the Ethereum blockchain can host the cryptocurrencies of various developers. We usually classify the new currency as a token. Tokens include any digital money that does not have a personified native blockchain on which it operates.
However, this option also requires advanced technical knowledge. Meanwhile, it is less difficult than the other approaches.
#1. Choose the blockchain platform:
Using this approach the first step includes determining which blockchain should host your token. They exist many options to choose from, with the Ethereum network and Binance Smart Chain in the lead among the most popular.
#2. Create the token:
Now, you have to create your token. This takes process based on how much you wish to customize the token. Building a highly customized token generally demands you have advanced technical knowledge. However, we have free online tools that can facilitate the token-creating process in just a few clicks. An example of such an app is WalletBuilders.
#3. Mint your new cryptocurrency:
When you are done creating the cryptocurrency, you can now mint the new tokens. If you use trusted platforms like the Ethereum blockchain or Binance Smart Chain then you may not require the services of a professional auditor or lawyer before you issue a batch of tokens.
Generally, tokens have less customization compared to coins, but making tokens usually seems faster and cheaper than making a cryptocurrency. Your token can benefit from the innovative features of your blockchain network including security provisions.
Option 4: Hire A Blockchain Developer To Create A Cryptocurrency For You
Building your cryptocurrency with this option eliminates the need for you to have advanced coding skills. You can simply hire a blockchain development company to build a great deal of customized cryptocurrency for you. They exist many enterprises as such to create and maintain new blockchain networks and cryptocurrencies. We refer to them as blockchain-as-a-service (BaaS) companies.
Furthermore, some BaaS companies create customized blockchains, while others may use their existing blockchain infrastructure. Some instances of great BaaS companies include Amazon Web Services, Microsoft Azure, Blockstream, ChainZilla, etc.
Frequently Asked Questions About How To Make A Cryptocurrency
Can I make my cryptocurrency?
Yes, of course, you can make a cryptocurrency of your own. Normally developing a new coin or token will require some computer coding skills, but you also can decide to hire a blockchain developer to develop a digital currency for you. You can launch your token in an existing blockchain platform like Ethereum.
How much does it cost to make a cryptocurrency?
The cost of developing a cryptocurrency widely varies based on how much you decide to customize the coin/token. Highly customized coins created on native blockchains appear the most expensive coins to create. While if you launch a standardized token on the Ethereum platform, it can be free through apps like WalletBuilders.
Is creating a cryptocurrency legal?
Yes, making a cryptocurrency is generally legal. However, some countries and jurisdictions have partially or fully placed restrictions on creating a cryptocurrency. For instance, since 2017 in China, raising money through virtual currencies has been illegal. Also, they banned all cryptocurrency transactions. Even where they make cryptocurrency legal, it’s feasible to run afoul of existing securities regulations when inaugurating and promoting a new cryptocurrency.
Conclusion
Finally, learning how to create a cryptocurrency is not an easy feat. Luckily, in an approach, you don’t need to know how to code to make one for yourself. You can even just sign up on any crypto exchange and start trading it in minutes.