More than 2,500 cryptocurrencies have entered the market over the last ten years, and their number is growing at a blistering pace. In theory, anyone can develop a cryptocurrency, but not everyone has the right knowledge or resources to make it feasible or achieve growth. Even after you manage to create a crypto coin, you have to be able to market, promote, list your cryptocurrency on exchanges, and so on.
According to Heisenberg Capital, all other altcoins will die out as soon as Bitcoin (BTC) reaches $100,000. In 2022 BTC has already reached $43,825, and it could take a few more years to reach $100k. In fact, the cryptocurrency market is highly volatile and competitive. Everything can change in a matter of minutes. That’s why it’s important to stay in the loop and monitor when crypto market competitors are low. In order to do so, we’ve put together this guide to help you launch a new cryptocurrency coin.
What Is a Cryptocurrency?
Before diving into the technical details of creating a new crypto coin, it’s better to understand what a cryptocurrency is. The first cryptocurrency was launched in 2009 when Satoshi Nakamoto (or a group of professional programmers) developed Bitcoin based on blockchain technology — a decentralized peer-to-peer network. Nowadays, blockchain has found its application in many other industries apart from cryptocurrency.
Generally, any currency carries the means universally accepted to obtain services and goods as well as distribute and store wealth. So a cryptocurrency can be defined as a digital currency relying on encryption to confirm transactions and generate new units. It functions like any other conventional currency, but the cryptocurrency has one significant difference — it operates independent of a bank.
Cryptocurrencies also have coins like traditional currencies. Sometimes, crypto coins are confused with tokens. But they are completely different. Tokens can operate on any of the existing blockchains, while crypto coins need their own. Coins can be used anywhere, but tokens have a specific utility value for a particular project. You can use coins to buy tokens, but you cannot buy coins with tokens. In other words, tokens are like bonus money you can spend in a particular store, while coins are real money you can spend anywhere. If you want to develop a crypto coin, you need to build a blockchain.
How to Develop a Cryptocurrency?
If you decide to create a cryptocurrency, you have four different options for doing so. Here’s how you can create your own cryptocurrency:
- Create a new blockchain
- Use an existing platform
- Fork an existing blockchain
- Hire a developer to create a cryptocurrency
All of these options require specific skills and technical expertise as well as financial and human resources. Creating a cryptocurrency isn’t an easy task or something you can rush through. Let’s dig into each possible way to create a crypto coin.
Create a new blockchain
You can always write your own code and create a new blockchain to support a native cryptocurrency. It requires extensive technical skills and a deep understanding of blockchain technology. When building a blockchain from scratch, you have total freedom to create something truly unique or innovative in your own way.
Use an existing platform
Some crypto platforms are designed to host the cryptocurrencies of other developers, for example, Ethereum. But your new coin will be classified as a token. Creating a token based on an existing blockchain doesn’t require vast knowledge or expertise with coding. Anyone with some computer knowledge can develop their own token. Tokens are less customizable, but this is probably the easiest and fastest way to make a cryptocurrency.
Fork an existing blockchain
The code for most blockchains is open source. It means that you can find the source code for the blockchain you’d like to use on the GitHub platform. You need to download the source code and modify it per your needs and requirements. However, when forking up an existing blockchain, you still have to work with a blockchain auditor before entering the market.
Hire a developer to create a cryptocurrency
Hiring a blockchain development company allows you to create a highly-customizable cryptocurrency. As a rule, they have vast experience in creating various blockchain-based projects. Before hiring a development agency, you need to understand how you’ll use your cryptocurrency and try to define all the potential requirements. Don’t forget to check the portfolio of your blockchain partner and their reviews.
How Long Does It Take to Develop a Cryptocurrency?
Creating a cryptocurrency is a complex process comprised of various steps. These steps can range, but the most common include development, ICO Security Audit, documentation, and coin placement. Every step requires time and human resources. The development of a cryptocurrency can take from 15 minutes to six months, depending on your project’s requirements. Keep in mind that entering the market can take an extra 2-4 months.
How Much Does It Cost to Develop a Cryptocurrency?
Technical issues are the hardest part of the cryptocurrency development process to overcome. Of course, you can use YouTube tutorials and get your own crypto coin developed in 15 minutes, but that raises the question of whether your coin really stands a chance to become viable and one of the top cryptocurrencies.
You need to produce a high-quality product to enter the market with flying colors. Otherwise, developing a cryptocurrency isn’t worth the resources you’ll invest. Due to there being so many factors to consider, it’s difficult to estimate how many resources will be required to develop a cryptocurrency. It’s widely based on how much you need to customize your coin. Highly customized coins established on the blockchain are the most expensive, while standardized tokens on the Ethereum platform can be created for free. You can always contact us to get a free estimate for your project.
As you can see, there are different methods available to create a cryptocurrency coin. You need to be an experienced professional in the field of blockchain technologies or hire someone who can be your technology expert. At Unicsoft, our team of developers is known for its knowledge and experience in developing a cryptocurrency coin. Drop us a line, and we’ll discuss your next blockchain project.