How To Make Your Own Cryptocurrency

How to Get Started: Creating Your Own Cryptocurrency

The creators of the world’s first cryptocurrency, who desired to put on the hideaway hat, hardly imagined that a few years after the launch of the project, Bitcoin would cost hundreds, and then thousands of times more than the original price.

Any digital currency that is created today has a chance to repeat the BTC success, all you just need is a professional approach, a budget and a bit of luck.

In this article, we invite you to join our discussion on how to create your own cryptocurrency, why and who needs it, and what prospects of the launch of new digital coins are opened up for their developers.

What is a Cryptocurrency?

Put the word “cryptocurrency” in your conversation and you will undoubtedly hear a flurry of different opinions. Some will say that this is the biggest technological breakthrough since the launch of the Internet, others that it is a scam. But how many people are really capable of explaining what it is? This is a set of successive records that allow you to track all the operations taking place on the network, from the most recent transaction to the very first one. This information is not confidential, anyone can find it out. But at the same time, cryptocurrencies are much more anonymous than traditional money as it is almost impossible to determine the owner of the wallet conducting the transaction. In order to use cryptocurrencies, you do not have to share your name, passport details or other confidential information.

Advantages and Disadvantages of Cryptocurrencies

  • absolute anonymity of users;
  • fast and cheap money transfers that do not depend on the location of the addressee;
  • transparency of operations, ability to track all transactions in the blockchain;
  • lack of pronounced inflation, thanks to the limited issue of coins;
  • investment potential.

As they say, there are two sides of the same coin so there are also the reasons why millions of people still do not trust cryptocurrency and consider it to be something fragile or even fraudulent because of:

  • a large number of really dishonest projects created by hackers damaging the overall reputation of the industry;
  • legislative problems in many states;
  • a small number of specialists in blockchain development;
  • volatility of prices, inability to accurately predict the growth or fall of the cryptocurrency rate.

How to Make Your Own Cryptocurrency: Example

How to make a cryptocurrency — Token

Creating a token. The company describes the concept: how many tokens are needed, their value, which provides the token to the owner, which is, the basic rules of the coin. The Ethereum platform itself is needed to monitor the implementation of these “rules” — remember, similar to an automated notary?

Buying tokens is reminiscent of the process of ordering coffee in the machine. You deposit money, select the taste and take a drink. The same with tokens — when depositing funds, the smart contract checks whether they are enough to purchase the token and whether you are entitled to it. If so, you will receive your token.

If you buy something, you can resell the thing, or just pass it on. For each type of token, the company also creates digital wallets from which you can send or receive tokens.

Of course, as well as supporting the operation of the coffee machine, the token processing operation is also not free. It all depends on which platform you use: Ethereum or Zilliqa. Usually, each transaction costs a share of the center. There’s even a whole Blockchain-as-a- Examples of platforms that provide this service are IBM, Stratis, Komodo and QTUM. The last three have their own tokens in circulation.

Read also Polkadot Price Prediction — How DOT Price will Go

How to make a cryptocurrency — Coin

  • You have a ready-made project. Cryptocurrency will be needed for settlements between its participants;
  • You intend to launch a startup with a popular and relevant idea. Your own cryptocurrency will attract investors by selling tokens;
  • Your goal is to make money selling digital assets.

In order to make a new cryptocurrency, you’d better choose one of three ways:

  • Development of cryptocurrency technology from scratch;
  • Making fork an existing coin;
  • Use of platforms that provide the ability to issue their own tokens.

How to make my own cryptocurrency from scratch? Sounds with a dose of skepticism for a crypto amateur. Then entrust this task to experienced specialists although it will not be cheap and sleep tight.

Making a fork is an easier option however it requires professional skills. Creating a simple “clone” of an existing coin will doubtfully bring the expected effect. The fork is to add new properties to cryptocurrency technology that improve the use of digital money. Without it then what is the reason to use your coin? The new cryptocurrency should give advantages to its holders.

Difference Between Token and Coin

The coin is tied to a public and open blockchain ledger. Users can do whatever they want with coins.

Coins can be created on the Bitcoin blockchain like Litecoin and Dogecoin or created on the basis of their unique blockchain, for example, Ethereum.

Tokens are digital assets created on the basis of an existing blockchain having their own value, but they differ from coins as they are not the same settlement systems, although they can be sold and converted as well. Tokens can be the equivalent of goods or act as a means of voting.

What is the difference between hard and soft forks?

Benefits of having your own cryptocurrency

But your own cryptocurrencies can become an excellent internal means of payment to employees, reward to customers. Having company tokens in the possession can be the best way to retain customers. After all, cryptocurrency is better than a plastic card with a 10% discount.

Your own digital currency is an additional investment. This is more relevant for companies with big names as people know them and the message about the launch of the cryptocurrency can quite easily help the company attract huge investments.

Any brand can benefit from creating its own digital currency.

There is an illustrative example of Kodak, which was a half-dead, once legendary company which has been forgotten for a long time. It thundered on all Western and domestic news portals after announcing the launch of its own cryptocurrency. Kodak’s stock went uphill right away, and at its peak, its price was up 90%.


Can I create my own Cryptocurrency?

Good knowledge of the computer, a sufficient level of perseverance and knowledge of the concept of work and action of Bitcoin is also very important. The main problem is introducing your coin, its value, and running the project and convincing others to buy it.

How much does it cost to create your own Cryptocurrency?

If you don’t want to go all the way on your own, you can hire the specialized company. On average, creating a currency based on someone else’s code without making major changes will take about a month and will cost about 10–20 thousand dollars. You will get both the core of the currency and wallets compiled for different systems, a couple of primary nodes for the functioning of the deployed, a block explorer and a mining pool done.

Theoretically it is possible to create a cryptocurrency free of charge, but practically if you are not a programmer, it will be harder to make. The only free option is to make a fork by manually editing the source code.

For free, you can really test your ability to work with code and as a result get a little-functional, unknown token with a beautiful personal label.

How do you make a successful Cryptocurrency?

What gives my Cryptocurrency value?

If we assess the liquidity of cryptocurrencies, we can determine their future, given the fluctuations in the value of fiat or gold.

For transactions, the cost and speed of transactions (transfers), anonymity, reversibility, risk in choosing a counterparty (contractual partner), and regulation features are important. Long-term currency stability is additionally required for savings.

In addition to the aggregate demand for currency, there is also a very important parameter, i.e. the number of transactions performed.

And finally, the regulation of cryptocurrencies will face a lot of changes over the next years, as states realize what exactly cryptocurrencies and Bitcoin are.

Therefore, increasing regulation can result in an increase in demand for cryptocurrencies, because those people will no longer be afraid of them. But, with good preparation, a thorough study of the crypto market the developer of the cryptocurrency can get significant dividends, just like investors.



Anonymous Crypto Exchange Without Limits

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store