How to Create Your Own Cryptocurrency?

A cryptocurrency is a type of digital asset, though it is different from other digital currencies because it is based on blockchain technology, which guarantees more freedom and opportunities. With the rise of crypto’s popularity many people started asking questions like “how to make my own cryptocurrency?”. The process of creating it takes some skill and knowledge, but here are some relatively easy ways to do it:

• hire professionals;
• buy a software that will help you to create a cryptocurrency.

To perform correctly, cryptocurrency must be:

• decentralized;
• protected from inflation;
• secured against hacking and attacks.

If a new cryptocurrency doesn’t meet these requirements, it’s unlikely to be successful.

How to create a cryptocurrency: coins vs. tokens

The answer to the “how to make my own cryptocurrency?” depends on what kind of crypto you want to create – coin or token. Creating a token is simpler than creating a coin as there is no need to create a separate blockchain first. The potential success of a brand new coin is higher than it is for a token, even though it takes more time, money and knowledge to make.

So let’s now compare the two options:

Coin

• Its own blockchain
• Requires advanced coding skills
• Blockchain development is expensive and takes time

Token

• Can be built on existing blockchains
• Relatively simple to create

What to consider when designing your crypto

• Define your cryptocurrency's utility There are many utilities for cryptocurrencies, from giving access to some services to the stock representation. You need to define the point of creating a crypto before starting to make it.
• Design your tokenomics
  Tokenomics are the economics that rule your crypto. It includes distribution methods, initial pricing, and total supply. Your chosen tokenomic strategy affects the performance of it on the market. Research it first before even learning how to make a cryptocurrency.
• Check its legal compliance
  Different countries have different laws around crypto. Check how legal it is to use digital assets in your area and don’t forget to learn about taxation.

7 steps to create your own cryptocurrency

The process of creation differs depending on what type of currency you want to create. Here we will try to describe both at once:

1. Choose a suitable blockchain platform or create a new one
   Choose a blockchain to mint your currency on. The popular options include:

• Ethereum
• EOS
• NEM
• BitShares 2.0
• Quorum

Although, if you are interested in how to make your own crypto coin, you need to design it yourself or hire somebody to make it for you.

2. Choose a consensus mechanism Consensus mechanisms determine how users confirm and validate transactions. There are 4 types to them:

• Proof of Work. You need miners to validate blocks. They compete in solving complicated math problems and the first miner to solve it gets a reward in the form of a newly minted coin.
• Proof of Stake. Miners work together to create each block, with a random one receiving the reward.
• Delegated Proof of Stake. Similar to the previous one but users vote who create a block and get a reward.
• Proof of Elapsed Time. The reward gets those who spent the most time verifying the transaction.

3. Design your blockchain architecture You will choose it depending on your coin and project utility. Consider choosing the one that fits best. Your options are:

• Centralized — Multiple other nodes send information to the one central node.
• Decentralized — Nodes share data between each other.
• Distributed — The ledger moves between nodes.

4. Start developing your blockchain
   It’s much better to cooperate with a whole team of developers and experts to build your blockchain, otherwise it will take much effort to create a blockchain successfully as you will not be able to change its rules after the launch.
5. Audit your code
   Auditing companies can check the code of your blockchain if there are any vulnerabilities. This process makes you and your work more trustful and reliable in the eyes of investors.
6. Check legal aspects
   This step also requires some help – ask an expert opinion on whether you will need to apply for permission. Developers must:

• Set up a legal entity.
• Get a license from the local governments.
• Register with certified groups that are devoted to stopping money laundering and other harmful activities.

7. Mint your cryptocurrency
   The method of minting will differ based on your tokenomics.

Top solutions for cryptocurrency creation

Those who are interested in how to create a cryptocurrency should learn about solutions available. BEP-20 and ERC-20 token standards provide a solution to create tokens based on pre-existing standards. Both are supported by almost every crypto provider.

ERC-20 belongs to the Ethereum blockchain, while BEP-20 is part of the BNB Smart Chain (BSC). Both options are good for creating your own tokens or dApps.

Also note those sidechains that use the security of other chains but also provide some customization.

So how to create your own cryptocurrency in 15 minutes? I fear it’s impossible because the process takes a lot of work.

Now it's time to create your own token. We have described to you how to create a cryptocurrency in great detail in this article. The process is relatively simple if you use blockchains based on the Ethereum Virtual Machine. You can also pay for special tools that create tokens on rules you provide.