How To Create A New Cryptocurrency?
With cryptocurrency shaking the traditional financial system to its core and people making a living out of crypto trading, many ask for a million dollars, which is – how to create a new cryptocurrency.
However, creating a new cryptocurrency is daunting, and only a person with technical and advanced computer programming knowledge can start it. But, since there are no entry barriers when it comes to crypto space, thus anyone can test his luck.
By studying top cryptocurrencies like Bitcoin or Ethereum, we can observe numerous avenues to create a new crypto coin. This guide will introduce possible ways to create your new cryptocurrency.
So, let us move on to learn and answer a famous query on how to create a new cryptocurrency.
So, crypto enthusiasts wishing to make their cryptocurrency can follow either method to create a new crypto.
- Create a blockchain and native cryptocurrency
- Modify the code of an existing blockchain
- Establish a new cryptocurrency on an existing blockchain
- Hire a blockchain developer to create a new cryptocurrency
However, these options require a technical computer, crypto space, human resources, and financial knowledge. Because the higher the level of knowledge about crypto and its working, the better chances of succeeding in an otherwise highly volatile market.
Option 1: Creating a new blockchain and native cryptocurrency
The best but most complex way to create a new cryptocurrency is to design your code to develop a new blockchain that supports a native cryptocurrency.
Although pursuing this option requires extensive technical training, a fundamental understanding of blockchain technology, and huge finances, it offers the greatest customization option.
Therefore, if you intend to offer a new crypto to the unique world, this option is the only way to achieve this target.
Here are key points to consider before opting to create a new blockchain.
- Choose a consensus mechanism.
The consensus mechanism is a blockchain’s operating protocol, like proof-of-stake (PoS) or proof-of-work (PoW).
- Design blockchain architecture
The design of the blockchain architecture requires the following answers.
- Should blockchain be public or private?
- Permissioned or permissionless?
So, it all depends on your liking and what you want to achieve from your cryptocurrency.
- Audit code and blockchain
Before going live, you must get your blockchain design and code audited by an IT firm. Luckily, numerous trustworthy organizations offer these services, So you can contact one and get tested in advance to avoid any mishappening later on.
- Verify legal compliance
It is better to seek hire and seek advice from a legal advisor. Since cryptocurrencies are under the official’s radar, thus, it is better to stay up to any legal permissions. Legal professionals will support you in meeting legal requirements and staying compliant.
Once you have done the above, you can proceed with your cryptocurrency. However, one key decision before going live is whether to mint coins in a single batch or increase supply over time as new blocks are added to the blockchain.
Option 2: Modify the code of an existing blockchain
Although this option is not as complex as our first option, it still requires technical knowledge as you need to change the source code for customization.
Through this method, users can modify the code of an existing blockchain to create a new cryptocurrency. If you are wondering how to access source code, you need not worry; blockchain’s codes are open, so you can easily download them.
However, you must involve a blockchain auditor and professional legal advice after downloading and modifying to get your cryptocurrency up.
Option 3: Establish a new cryptocurrency on an existing blockchain
Blockchains like Ethereum offer users the ability to host different cryptocurrencies. The new crypto is classified as a token, which acts as native currency but is not native to the blockchain.
Let us run through the basic steps of creating a new cryptocurrency by establishing it on an existing blockchain.
- The first step is to select the blockchain, and there are numerous options, including Ethereum and Binance.
- The next step is to create the token. The process is dependent on the design and customization of your desired crypto. If you intend to develop a highly customized coin, you will need advanced technical knowledge.
- Once you have created your cryptocurrency, the next step is minting it.
Tokens are usually less customized than coins and are the fastest way to design crypto and start making profits.
Option 4: Hire a blockchain developer
The last option is to hire a specialist blockchain developer to design cryptocurrency to your liking. Numerous organizations provide these services.
Some prominent blockchain-as-a-service (BaaS) are Microsoft Azure, Blockstream, and Amazon Web Services.
Frequently Asked Questions
Is t legal to create a new cryptocurrency?
Many countries, including the U.S., have allowed the creation of new cryptocurrencies; thus, it is legal to create them. However, please check with your local laws regarding creating new cryptocurrencies.
How much does it cost to create a new cryptocurrency?
Generally, the cost of creating a new cryptocurrency is between $2,000 to $50,000.
Can I create a cryptocurrency for free?
Numerous blockchain networks host cryptocurrencies for free. So you can easily create a new crypto with a basic blockchain understanding.
We have thoroughly answered, “how to create a new cryptocurrency.” We hope you are now well-versed and ready to launch your cryptocurrency.
Luckily, there are four major sources to start your cryptocurrency. For instance, you can modify the current blockchain, hire a professional developer, or develop your blockchain. These methods will smooth out your journey of creating a new cryptocurrency.
However, developing new crypto is costly and requires advanced technical skills. So, if you are really into it, you must develop a solid work plan and strategy to land in the crypto space successfully.
Moreover, the crypto world is already highly saturated as thousands of existing coins are in the market; thus, getting new coins recognized is always a challenge. Such challenges also leave investors with how to buy a cryptocurrency and which one to buy.
Please share feedback in the comments section.