Written by: James Page
Seeing how popular cryptocurrencies are these days, it’s only natural for crypto enthusiasts to show interest in creating their own cryptocurrency.
The good thing is that you don’t need to be an expert coder to create your own asset but you do need to review some options and get acquainted with the caveats of the process before you get started. This is exactly what our guide is all about!
What Is Cryptocurrency?
A cryptocurrency is a form of payment that is exchanged for goods and services. Cryptocurrency is popular for numerous reasons, mainly because it’s a decentralized currency that’s operated on a peer-to-peer network, which means that financial institutions such as governments and banks are not involved in these types of money transactions.
The underlying technology of this P2P network is known as blockchain technology. Blockchain is a digital ledger that consists of data blocks that store cryptocurrency transactions. The blocks are chained together so that every new block includes part of the code of the previous one.
If you would like to learn more about cryptocurrency, we recommend taking a look at our overall guide to cryptocurrency.
How to Create Your Own Cryptocurrency: Key Decisions to Consider
Assign a Purpose
In creating a cryptocurrency you not only need to learn how to create your own cryptocurrency, but more importantly, you need to detect a problem that your currency can address, offer a solution for it, and decide what your target audience is. Expert business analysis services can help you with this crucial process. To attract clients to invest in your token during the ICO (a form of capital-raising activity for newly-launched cryptocurrencies), you need to come up with a convincing proposal since, without real value, even the biggest idea stays just an idea.
Decide on a Budget
Creating your own cryptocurrency from scratch with C++, Java, Python, or another technology can cost anywhere between $15,000 and $50,000, while the overall cost excluding marketing expenses will cost around $150,000 - $200,000.
Promote Your Project
Promote your project by creating an informative website with a modern, clutter-free design and user-friendly interface. Moreover, we recommend promoting your cryptocurrency on popular apps and social media channels such as Telegram, Reddit, Discord, Facebook, and Twitter.
How to Create a Cryptocurrency: Coin vs Token
It’s important to keep in mind that there are two types of cryptocurrencies: a coin and a token. A coin is a cryptocurrency that operates independently of any other platform. They have their own blockchain. Tokens, on the other hand, are built on existing blockchains initially created for another coin.
Creating a Coin
If you’re looking for a quick way of creating your own cryptocurrency with minimum costs, this might not be the most convenient option for you. To create a coin, you either need to be a skilled expert in decentralized technologies or hire someone with such knowledge and skills.
Creating a Token
When it comes to creating a token, you have more feasible ways to build a cryptocurrency, since it is more cost-efficient and easier to create with open source code. In order to create it, you'll need to install the MetaMask plugin (your gateway to blockchain-based apps) and create an account. Before making the token, you should consider the token’s name, symbol, and the number of tokens in circulation.
Common Solutions for Creating a Cryptocurrency
Ethereum is a decentralized, open-source blockchain, trusted by many because of its maturity and longstanding, reliable reputation on the cryptocurrency market. The tokens are developed using the ERC-20 standard in Ethereum’s unique programming language, Solidify.
NEO blockchain is developed using the NEP-5 standard and is directed at the smart economy market. It supports popular programming languages, such as C#, Java, Python, and Kotlin.
Finally, to create EOS tokens, you need to use EOSIO, an open-source blockchain platform that supports C++ or another language that follows WebAssembly. The platform is directed at scalability, flexibility, and cost efficiency.
As you can see, the answer to the question of how to create your own cryptocurrency is relatively simple. Building the cryptocurrency itself isn’t necessarily the most difficult part what matters when creating your cryptocurrency is to bring real value to it by solving problems, offering solutions, and convincing others that it’s worth buying.
The views and opinions expressed in this article are those of the contributor, and do not represent the views of IRIS Media Works and Advisorpedia. Readers should not consider statements made by the contributor as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click here.