How To Create A Cryptocurrency - Step Guide
According to the data collected in August 2022, there are over 20,000 cryptocurrencies listed on CoinMarketCap. The global financial system has changed ever since Bitcoin hit the market. It seems easy to create your cryptocurrency now because of the rate at which new coins are entering the market.
You may have many questions like How To Create A Cryptocurrency? How to create your cryptocurrency? What will it cost to create, and how much time does it take?
No worries at all because we have all the answers to your questions. So make sure to understand everything clearly before taking any step.
How To Create A Cryptocurrency: 3 Ways to Follow
There are three ways to create a cryptocurrency, so you can choose from the most to least difficult methods.
1. Developing Blockchain And Cryptocurrency From Scratch
To make your Blockchain and native coin, try to create codes first. By choosing this method, you will get flexibility and complete control over your coin. But you will need specific knowledge of Blockchain development and technical skills. To develop the entire Blockchain technology, you will invest time and money.
2. Change The Existing Blockchain Code If Possible
Another way to create your cryptocurrency is by making changes to the existing Blockchain source code. But to follow this method, you should have some expertise. Once you have decided which coin you will change now, you should next download the source code and modify it. However, it would be best to remember that you still need experienced attorney counsel. Now you can begin to make your cryptocurrency.
3. Create A Cryptocurrency For Existing Blockchains
The third way to create a cryptocurrency is by creating your token using an existing Blockchain platform. In other ways, you can also pick a Blockchain and make a few changes in its infrastructure, and you can now use it yourself. This option will be suitable, especially for those who know little about coding.
Steps To Create Your Cryptocurrency
When you finally decide which method will be perfect for you, it’s time to move towards the step you need to know to create a crypto token. Here are the steps you have to follow:
Step 1: Decide Your Aim
It is very important to decide what to achieve with your cryptocurrency. There are two different things you can do after creating your crypto token. First, you can use it as monetary exchange, or second; you can use it as a store of value. From the start, you should have a clear mind and try to find various problems and ways to solve them from a different perspective.
Step 2: Name And Logo
Once you know the purpose, it’s time to name your token and decide on its logo. It’s crucial to creation because the logo and name will stand out from all other tokens. The next thing you will do is create the white paper; this documented white paper will have all the information and every detail about your currency.
Apart from all this, you will also need a social media account and website. After completing the white paper, you will add it to your website. This will help all the crypto used to learn about your token.
Step 3: Choosing Consensus Mechanism
This is a protocol that will decide whether your network will be considered for a particular transaction or not. That is why you have to choose how your nodes will work.
There are two very popular consensus mechanisms. One is proof-of-work for Bitcoin. And the second one is proof-of-stake. However, there are many other mechanisms also, but it will depend on your requirement.
Step 4: Choosing Blockchain
This will depend on the methods you choose to create your cryptocurrency. All the tokens need a specific place to live, and always remember it is crucial to choose the Blockchain for your crypto token. And once again, it will all depend on your technical skills.
Step 5: Integrate Apis
Only a few of the platforms provide the facility of application programming interfaces (APIs). So if your crypto token has APIs, it will be a good impression, so automatically it will stand out, and the adoption will be increased. To help you with this step, there are third-party Blockchain APIs so that you can seek help from them.
Step 6: Make Your Crypto Token Legal
Now it’s the very last step but the most important step. So in case of not following this step can lead to trouble. According to data from 2017 and 2018, many people created and initiated ICOs. This was the time when cryptocurrency was in a kind of legal grey area. So many inventors created and promoted new coins, which caused fines and criminal charges.
So it will be a good idea to research the laws and regulations about the securities offering. According to the complexity and issues, hiring a lawyer with expertise in that area is recommended. So you will get better guidance.
What Will Be The Cost Of Creating A Cryptocurrency?
So the cost will depend on the complexity of your project. Due to immense initial development costs, crypto coins are higher. You will also need some cost to pay for the maintenance of your token.
Approximately you will need $10,000 to $30,000, but the cost can increase depending on how much you want to customize your token. Apart from that, you will also need to hire a Blockchain developer, designer, and legal advisor, and you will be paying for all of them.
How Long Does It Take To Make A Cryptocurrency?
Creating a cryptocurrency will take more than six months, depending on the difficulty level. However, your level of technical expertise will decide the proper time you will need to edit the crypto graphics code.
Although a basic cryptocurrency with automated tools will only consume a few minutes, changing the code takes time and coding expertise.
Nothing is easier until you learn to do it. That is why creating your cryptocurrency will need your time and resources. So all the steps mentioned above are the basic guidelines for you. So keep in mind to follow every single step for successful creation. Lastly, you will need experts’ technical skills and help for a perfect crypto coin.