The process can be thought of as using existing code as a template, and editing it to personal liking to create a completely different blockchain experience and cryptocurrency. Some blockchain code is even open-source, making this option accessible to users who want a say in development but have less coding experience or funds. If you don’t want to create your own blockchain or need an option with the least coding possible, you can create a new cryptocurrency using an existing blockchain. You can use the source code of another blockchain to create a new blockchain and native digital currency. This method still requires advanced technical knowledge to avoid security vulnerabilities, bugs, flaws and other issues. Creating a successful cryptocurrency from scratch requires a well-defined plan, technical expertise, and a commitment to ongoing development and community building.
Once you have created a cryptocurrency, you might as well want to give it value. To do so, you will need investors, and to reach investors, you can approach an Initial Coin Offering (ICO) strategy or an Initial Exchange Offering (IEO) strategy. But around the USA, the federal authorities are taking care of the cryptocurrencies to ensure that there is no money laundering, protecting investors and people who invest in them. However, the fear of illegal usage, high volatility, and investment risks stirred the reticence of governmental agencies. In the days, Dogecoin (DOGE) took an internet meme and turned it into a cryptocurrency. The well-known Shiba Inu meme was used to brand the coin, and the community found it quite entertaining and chose to support it massively.
After this, your choice of blockchain, consensus mechanism, and architecture are all needed for the development stage. Next, you could consider an audit of your project and a final legal check. While pretty much anyone can create a cryptocurrency, developing a solid project requires serious work and dedication.
Also, keep in mind that projects such as Cardano and Polkadot have been around for years and are still works in progress. If you have decided on an ICO, go ahead and check our previous article on how to market an ICO. There are no laws to govern cryptocurrencies directly, only the Digital Rights law covering more aspects of the online sphere. China also prohibited any crypto mining by June 2021 and finally outlawed cryptocurrencies outright in September. To ensure legal compliance, you can even ask for an external audit. So, just as in these two examples, both currencies have a real-world utility how to start freelancing as a web developer in 2022 that attracts investors and speculators.
Tokens also have a broader utility than coins and can be used on other blockchains. If you’re creating a coin and blockchain you’ll likely have to pay a whole team is the bitcoin bubble set to burst over multiple months. A code audit from a reliable team can also cost around $15,000 (USD). When we average this out, to create a cryptocurrency with some chance of success, you’ll likely need to spend thousands of dollars on its creation, marketing, and community building.
Questions to Answer Before Creating a Cryptocurrency
- You can make a new cryptocurrency without first creating or modifying any blockchain.
- If you want to create a cryptocurrency that is truly new or innovative in some way, then building your own blockchain to support that coin is the best option.
- Selecting a consensus mechanism that aligns with your project goals is pivotal.
- You could also look at sidechains that use the security of a larger chain like Ethereum or Polkadot but also provide some customization.
- Even in the US, there’s a constant battle going on between regulators and crypto companies.
They should be easy to understand and offer technical explanations of the project’s competence. A whitepaper is very important for early fundraising and drawing attention from early supporters. Coins have a specific utility over their bitcoin trademark and domain sold whole network (such as for gas or governance) and are normally used to store, create or transfer monetary value between all participants.
Crafting a great whitepaper is a bit like putting together a well-thought-out puzzle. The trick is to make it clear for both tech-savvy folks and those just getting into the crypto scene. A good whitepaper not only attracts investors but also helps the project team stay on the same page as they bring their crypto dreams to life. Do a lot of marketing analysis and research in order to boost your chances of achieving real product/market fit. There are many things to grasp before you start the complex process of designing your crypto.
Crypto tax guides
The application programming interface (API) is an interface linking to a blockchain node or a client network. For example, an API can interface between the currency exchange and an application that collects data about that currency. APIs can work for many purposes in the world of cryptocurrencies, but the most common include trading currencies, providing data security, and obtaining currency analysis.
Use an Existing Platform (Create a Token)
In this guide, we explore the process of how to make a cryptocurrency, from understanding the basics to deploying it on existing blockchain platforms. OpenZeppelin offers a collection of secure and tested smart contract building blocks similar to those pre-built parts. They have a specific block specifically designed for creating tokens on the Ethereum blockchain, called the ERC-20 token standard. Central to success is a clear understanding of the project’s purpose, articulated meticulously in the whitepaper to identify the unique selling proposition (USP). This USP refines the project’s focus and establishes a compelling narrative that resonates with users and investors.
If you want to make your own blockchain and coin, you will likely need a team of blockchain developers and industry experts. Even if you look at forking a blockchain like Ethereum or Bitcoin, there is still a huge amount of work required to setup your network. This would include encouraging users to act as validators and run nodes to keep the blockchain running. It has a simple use case of transferring monetary value to anyone across the globe without the need for intermediaries. Its blockchain records all transactions and ensures security and network stability.
