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How to Make a Cryptocurrency

Crypto is a golden opportunity for startups aiming to make the most of Fintech, and getting started is simpler than you might think.

By Coinmarketcap data, there are 1.8+ million cryptocoins in the world, which continues to grow daily. The industry is actively being explored, and building new cryptocurrencies is becoming more and more accessible.

6 minutes read
How to Make a Cryptocurrency  %Post Title photo

How to Make a Cryptocurrency

Crypto is a golden opportunity for startups aiming to make the most of Fintech, and getting started is simpler than you might think.

By Coinmarketcap data, there are 1.8+ million cryptocoins in the world, which continues to grow daily. The industry is actively being explored, and building new cryptocurrencies is becoming more and more accessible.

Many crypto investors are enthusiastic about the idea of creating their coins, developing usage scenarios, and attracting an audience. But where to begin? Numerous methods exist for making coins and tokens with various costs and entry barriers. If you’re considering starting your cryptoproject, read on – this article outlines how to make a cryptocurrency.

The ABC of Creating Cryptocurrency 

This is a core step in blockchain advancement. First thing, we should grasp the concept itself: what is blockchain?

This new technology is becoming highly sought-after as the popularity of crypto is gaining momentum. Its biggest distinction from ordinary databases is that data cannot be fully deleted from the database. The network operates based on a distributed ledger: even if one link is dropped from the common chain of transactions, data about it is saved on the devices and computers of other independent users.
As for investments in this field, their volume on the global market is expanding year after year. By 2024, investment growth is predicted to be more than 200% each hour.

Cryptocurrency creation opens significant opportunities and provides many use cases across multiple sectors. Let’s take a look at some of them:

  • Starting your own coin leads to investment and funding opportunities. Tokens can be purchased by investors who want to support the project’s progress.
  • Transactions are carried out at a low fee and without intermediaries such as banks. This is especially beneficial for businesses with worldwide operations.
  • You can make a specialized platform, such as DApps. It also encourages a big community of users.
  • Use a coin to coordinate voting inside an organization.

NB! Building a cryptocurrency necessitates extensive experience and effort: you should build a technical infrastructure, assure security, adhere to legal standards, and attract investors. All of these processes require strong marketing and flexible strategy.

Advantages of Crypto Creation

Here’s a rundown of the common crypto benefits.

Decentralization

Cryptocoins rely on blockchain, which ensures independence from centralized authorities. Hence, owners have autonomy, free from external influence. A compelling feature, isn’t it?

Fast and unlimited transfers

Compared to traditional fiat transactions, crypto transactions are swift and unrestricted. You can complete as many transfers as you want.

Low transfer fees

Crypto transaction fees are relatively low compared to those imposed by banks and other financial institutions. This affordability encourages utilizing cryptocoins for payments.

Global reach

Cryptocurrency transcends geographical boundaries and enables transactions between parties in different corners of the world. This global accessibility eliminates the need for currency exchange and related issues with this process.

Choosing the Right Path for Crypto Creation

You should know that crypto can be broadly categorized into 2 groups: coins and tokens. Thus, consider the below-mentioned methods.

Approach 1: Set up a new token on an existing blockchain

The chain on which crypto is made enhances the status and security of a new project. Although you won’t have 100% power over all the characteristics of your token, you still have room for customization.

This way you can save time and resources that would otherwise be spent developing your network. Additionally, you gain access to a broader user base and ecosystem. It enhances the visibility and adoption of your project.

Method 2: Hire a HowSimpl developer to create a cryptocurrency

First thing first, if you wonder how to build your own blockchain and how to create your own cryptocurrency and make money, the HowSimpl specialists are at your service! Engaging our blockchain developer offers complete customization and control over every aspect of your digital asset.

At HowSimpl, you can hire developers and marketers to ensure that your coin aligns with your project goals and objectives. Our team follows this approach:

  1. Learning your project goals.
  2. Deciding on algorithms. The most common are PoW and PoS. You can also consider other options. For example, Proof-of-Authority (PoA) or Proof-of-Burn (PoB) algorithms.
  3. Choosing a tech stack. Typically, Solidity, C++, Java, Python, Rust, or Substrate are chosen for these purposes.
  4. Choosing a blockchain. For example, if you have settled on the PoS algorithm, Ethereum, Solana, Cardano, or Near blockchains would be suitable.
  5. Establishing blockchain architecture.
  6. Integrating API.
  7. Creating a Minimum Viable Product (MVP).
  8. Developing interface design.
  9. Marketing.

At HowSimpl, we have an experienced team of blockchain developers that implement your concepts into bright projects. You can check some cases of our team:

  • Listing.Help – a Web3 agency offering listing on crypto exchanges;
  • Adivin – a crypto platform offering crypto inheritance creation, reversible payments & wallet recoveries.

What to Know Before Making Your Own Cryptocurrency

Once you know how to make a crypto coin, you should pay attention to the following key areas.

Utility

Cryptos can serve various functions. For example, they can represent shares, etc. You need to determine the functions of your cryptocoin from the very beginning.

Tokenomics

This is the economy that rules your project and determines the overall supply, initial price, etc. If tokenomics is inefficient and users are not interested in purchasing the crypto, a good idea will fail. For instance, if you create a stablecoin but mismanage its pegging, no one will be keen on purchasing it.

Compliance with regulatory standards

Each country has its own regulations regarding crypto. In some jurisdictions, cryptocoins are completely prohibited. We strongly advise you to analyze the legal issues you may encounter.

How much does it cost to make a cryptocurrency?

If you are implementing your own network, you will need to pay an entire team for several months. The approx. costs – around $10,000-40,000. The cheapest option – a single token. On average, launching a cryptocoin that has a chance of success will require spending thousands of dollars – on development and marketing.

Use Cases

Here we prepared a brief overview of common crypto applications.

1. P2P Transactions

Cryptos serve as digital cash. They enable individuals to make P2P transactions without the need for 3rd parties like banks. The benefits include lower fees, faster settlement times, and increased confidentiality. In some countries, popular coins are already used for day-to-day purchases, online shopping, etc.

2. Remittances

Cryptocoins offer a faster and cheaper alternative as they allow individuals to send money across borders in a matter of minutes with significantly lower fees. This is particularly beneficial for migrant workers who frequently send money to their families in other countries.

3. DeFi

Cryptocurrencies stand as the foundation for various DeFi applications, including lending, borrowing, decentralized exchanges (DEXs), yield farming, and liquidity provision. DeFi democratizes access to monetary services and bypasses the barriers imposed by traditional financial institutions.

4. NFTs

They enable creators to monetize their digital creations, provide provenance and ownership verification, and offer new avenues for NFT ownership and trading.

5. Smart Contracts

Cryptocoins like ETH enable the creation and execution of smart contracts, which have applications across various industries. They are widely used in finance, real estate, and legal contracts.

6. Confidentiality and Security

Blockchain guarantees security through decentralization and cryptographic techniques. Thus, malicious actors have no chance to tamper with the network.

Is It Legal to Create Your Own Cryptocurrency?

Yes, but it’s not that straightforward. Cryptocurrencies currently exist in a regulatory gray area. Some jurisdictions incorporate them fully, others selectively accept certain ones, and some outright prohibit them. So, we recommend applying to a Fintech lawyer with the request of how to stay obedient in the legal field.

How To Make a Cryptocurrency: Summing It Up

The most crucial question to address before making your own cryptoproject is “For what purpose?” You need to understand clearly what specific purposes it will serve and how it can be applied.

The HowSimpl team will take care that your cryptoproject is an alive, useful, and engaging ecosystem. We are ready to make a difference in the cryptoworld. Are you with us? Reach us out for a free consultation.

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