How To Create A Cryptocurrency

There have now been more than 12,000 different digital currencies created worldwide. Whether being bought as an investment or used to place an online wager after checking the latest NFL stats, cryptocurrency’s rising popularity is helping it become more mainstream. The market is constantly expanding and is even being backed by legislation in many countries.  

Many people probably wonder how to get in on the crypto craze by creating their own. It may seem like a colossal task to mint your own crypto, but experts say it’s not as difficult as it seems. Although it does require technical knowledge to create a cryptocurrency, it is possible to do with minimal programming knowledge depending on the option you approach. 

There are several different options when deciding how to create a new cryptocurrency, requiring at least some level of technical computer knowledge. It’s also crucial to keep in mind that thousands have attempted to develop cryptocurrencies in the past without success because of issues such as lack of support or regulatory matters, so it’s important that your project stands out. According to experts, half of the cryptocurrencies available today won’t exist in a few years.

Create Unique Cryptocurrency Using Your Own Blockchain

This method of creating a cryptocurrency is the most involved as it requires a basic understanding of blockchain technology along with advanced coding skills. However, this is the direction that should be taken if you want to create an innovative or unique currency that stands out. Coins with their own blockchains are deemed Native coins and are considered better than crypto tokens.

You must decide whether the new blockchain should be public or private, along with hiring a blockchain auditor to see if the code has any vulnerabilities. The other things that must be decided are which consensus mechanism, or operating protocol, will be used for the new blockchain. Also, seek legal advice to verify if your cryptocurrency complies with all regulations and laws that are relevant. 

Modify an Existing Blockchain

Another less complicated way of creating crypto is to use an existing blockchain and modify the code to create a new one. Most of the code for blockchains is open source, meaning it can be downloaded and modified by anyone. 

This requires some coding skills when changing the code to your unique design. When the finished source code is modified to your expectations, you should again seek a blockchain auditor and legal advice before launching it.

Create a New Currency Using an Existing Blockchain

Making a new cryptocurrency without modifying or creating a blockchain is also possible. For example, some platforms are able to host the cryptocurrencies of various developers, such as the Ethereum blockchain. Using this method, the new crypto would be considered a token, which is designated as any digital currency that’s not native to the blockchain it uses to operate. 

This method also requires some technical knowledge, but tokens can usually be created without much difficulty. You first must choose which blockchain platform should host the token. Then create the token, which is as simple as using an online tool like WalletBuilders in which the token can be created quickly in just a few clicks. After that, you’re ready to mint your new tokens and will not need an auditor or legal professional if using a trusted platform such as Ethereum.

Use a Blockchain Developer

There are now developers available known as blockchain-as-a-service (BaaS) companies. New coins or tokens can be made by hiring one of these companies to create and maintain your new blockchain network. 

Some of these companies use their own blockchain infrastructure but can also develop customized ones. These companies can also launch a token that’s highly customized onto an existing blockchain platform. 

Even if it’s just a hobby, anyone can create their own cryptocurrency. If you want a cryptocurrency that gains value over time and is successful, it will take a lot of time, money, commitment, and many other resources. With the large number of coins and tokens being released every day, you’ll have plenty of company when deciding to develop your own cryptocurrency.