Anyone who wants to create a crypto coin can do so. However, one should understand that the process requires a high level of commitment regarding money, time, and resources. On top of that, you’ll also need some advanced technical knowledge.
Understanding How Cryptocurrencies Are Made
If you wish to create your cryptocurrency, there are several paths that you can take to achieve your goal. They include:
- Building your own blockchain and native cryptocurrency
- Altering or modifying the code of an existing blockchain
- Establish a new cryptocurrency using an existing blockchain
- Hire a blockchain developer to create one for you
The majority of these options need someone to have technical knowledge, aside from meeting the financial and human resources requirements. The way it works is that most technical creations offer the highest degree of customization possibilities, which is something most cryptocurrency developers say you should always consider. Also, one should remember that creating a crypto coin is the easy part; the arduous task is maintaining and growing it over time. You also need to make sure that you can adequately answer the question ‘how much does it cost to create a cryptocurrency?, if you intend to hire someone to create it for you.
Let’s take a closer look at some of the various options to take when creating a new crypto coin.
Creating Your Blockchain and Native Cryptocurrency
In most cases, going this route will require extensive technical training for you to develop your coding skills and have a fundamental understanding of blockchain practices and technologies. However, this option still affords the most significant amount of freedom if you genuinely want to make a crypto coin that is new, unique, or innovative in various ways.
You can make your native coin in whatever manner you like. By its very definition, native coins have their blockchain and are considered unique tokens, as opposed to digital currencies that use other blockchain networks.
Furthermore, if you wish to create your own blockchain you’ll be required to:
1. Choose a Consensus Mechanism
A consensus mechanism can also be referred to as a blockchain operating protocol. The most commonly used ones are PoW (Proof of Work) and PoS (Proof of Stake).
2. Design Your Blockchain Architecture
You also have to decide whether your blockchain should be private or public, along with if it should be permission-based or permission-free. Making this decision will typically depend on your reasons for making a crypto coin.
3. Audit Your New Blockchain Together With Its Code
Most crypto coin makers work together with blockchain auditors to review their blockchain code to discover if they have any vulnerabilities that could lead to a hack.
4. Consult With Cryptocurrency Attorneys
When trying to make a crypto coin using this method, you will have to hire some legal professionals to advise you before you begin making anything. They will also help you to know whether or not you are operating within the confines of the law.
Modifying the Code of a Current Blockchain
Some people may decide to use the same source code of another blockchain to make a new one together with a new native crypto coin. Pursuing this method does require some technical knowledge since there will probably come a time when you need to modify the source code to achieve your design objectives.
Once you download and modify the source code of a current blockchain, you will still have to consult a blockchain auditor to identify the next steps. If all is well, you can then proceed with minting your new crypto coin.
Making a New Crypto Coin Using an Existing Blockchain
You can also create new crypto coins without first making or modifying a blockchain, by hosting a coin directly on the existing blockchain. Platforms such as Ethereum blockchain host multiple different cryptocurrencies.
Making a token that is hosted on an existing blockchain does require some technical prowess, but not nearly as much as the previous options we’ve explored. Anyone with some advanced computer skills can probably create their tokens without much difficulty by following this route.
Hiring a Blockchain Developer Create a Crypto Coin for You
The other way you can create a new crypto coin or token that has some customization is to hire a blockchain developer or firm. Most enterprises, called BaaS (blockchain-as-a-service), exist to build and maintain new blockchain networks and crypto coins. Some develop customized blockchains, while others prefer to use their existing blockchain infrastructure and host new coins on top of it. If you have a great idea for a coin, but lack the technical expertise to create it, this is the route for you.
Any individual can make a crypto coin, even if it’s just for fun. The problem usually comes when you want to launch it successfully to gain value. As mentioned above, this requires time, money, and resources. Nonetheless, if you are curious about crypto coins or want to make your own, give it a shot. Just ensure that you perform adequate research and consult those who have done it before or have some experience with it. Doing so will help you avoid any unfortunate issues in the long run.