How to Create a Cryptocurrency [Step by Step Guide]

How does cryptocurrency work? How to make a cryptocurrency? How to create my own cryptocurrency? All these questions must be popping in your head. Don’t worry we have the answers for them. Keep reading to get enlighted with knowledge of cryptocurrency and how to benefit your business from it.

Before answering the $100 billion question (the total valuation of Bitcoin) of how to create your own cryptocurrency, there are a few things you need to learn about the future of money.

What It Is A Cryptocurrency? Basic Definition

First of all for let’s go back to basics. What is a currency?

It is far more than just a banknote or coins. A currency is a unit of storage and account and a means of exсhаnge. In simple terms, it is a universally accepted way of buying or selling any goods or services.

In older times, when the barter system was in place anything from rice and grains to wool and even feathers would be considered a currency. Then came in banks to regularize this means of payment. That’s when they made coins and printed banknotes.

Now in the digital time and age, the coins and banknotes seem to become outdated. So came in a new form of currency, the cryptocurrency.

Now, What is Cryptocurrency?

It is just like a normal currency but in a digital platform and accepted universally unlike physical currencies that work only in a specific country. A single centralized platform does not bind cryptocurrencies.

What It Is A Cryptocurrency? Advance Description

Cryptocurrencies don’t have banknotes, but they do have coins. There is also one more term, Token in cryptocurrencies. People often get confused between a token and a coin.

So What exactly is the difference between a Token and a Coin in Cryptocurrency?

The three main differences are:

  1. Coins are part of a single blockchain while tokens operate on the existing blockchains.
  2. Tokens are limited to a specific industry or community; coins can be used anywhere.
  3. Coins can buy tokens, but tokens can’t buy coins.

Let’s simplify using a real-life scenario. If you go to Starbucks regularly, then you may earn loyalty points for your frequent purchases. With these points, you can redeem a drink. These loyalty points are token that an establishment (in this case Starbucks) offers.

Now you can buy such loyalty points by giving money which in turn gives you free coffee. This money is the coin (in this case a real-life coin or bank note).

You can buy loyalty points using coins, but you can not get real money using loyalty points. So a crypto coin can be used to buy a business’s token, but you can’t buy a crypto coin using a token.

Starting a New Cryptocurrency: Is It Right for Your Business?

Now you have a fairly good idea what a cryptocurrency is and how it is used. Now comes the question, does your business actually need cryptocurrency? Just answer the questions below, and you will get a clear picture:

  • Will your business be on the internet?
  • Does your revenue come more from digital payments than hard cash?
  • Will an online payment option increase your userbase?
  • Do you plan to stay in business for more than a couple of years?

Okay, the last question was a rhetorical one. If the answer to all these questions is “yes” then your business needs a integrate cryptocurrency.

Benefits of building your Own Cryptocurrency:

  • Eliminate Fraud Risk
  • Transaction Anonymity
  • Lower Operational Costs
  • Immediate Transactions
  • Access To New Customer base
  • Security For Funds

How To Make A Cryptocurrency?

I believe now you are ready to create your own cryptocurrency. Without wasting any time let’s get straight to the step-by-step process to create and launch your own cryptocurrency.

Step 1. Choose a Consensus Mechanism

Consensus mechanisms are the protocols that consider a particular transaction legitimate and add to the block.

Step 2. Pick a Blockchain Platform.

The correct choice of blockchain platform for your business depends on the consensus mechanism you’ve selected. (I’ll mention the top blockchain platforms below for you to choose from)

Step 3. Design The Nodes

You have to decide the workings and functionality of your blockchain and design the nodes accordingly. For instance, will the permissions be private or public? The hosting will be on the cloud or on-premises, or both? What would be the required hardware details for the execution?

Step 4. Establish Blockchain’s Internal Architecture

Be sure about all the aspects before the launch as you won’t be able to change several parameters of the blockchain after it’s launched and running. The decisions could be as simple as what address format your blockchain will follow to providing exchanges between different cryptocurrencies without a 3rd party intermediary.

Step 5. Integrate APIs

Some platforms don’t provide pre-built APIs so make sure yours does. If it doesn’t still no need to worry, there are several 3rd party blockchain API providers like ChromaWay, Gem, Colu, Bitcore, BlockCypher, and Tierion.

Step 6: Design The Interface

Building a world-class cryptocurrency is of no use if your interface is not good. You need to make sure that the web, FTP servers, and external databases are of most recent and the front-end and back-end programming is done with the future upgrades in mind.

Step 7. Make Your Cryptocurrency Legal

Make sure that your cryptocurrency is prepared and abiding by the soon to become laws of international cryptocurrency regulations. This way your work is preserved and no sudden surprises can ruin your efforts in creating a new cryptocurrency.

Top Blockchain Platforms of The World:

  • Ethereum (Market Leader With 82.70% Shareholding)
  • Waves (WAVES)
  • Hyperledger Fabric
  • NEM
  • IBM blockchain
  • Nxt (NXT)
  • HydraChain
  • BlockStarter
  • BigChainDB
  • EOS
  • Quorum
  • IOTA
  • CoinList
  • MultiChain
  • Openchain
  • Chain Core

Best Cryptocurrencies That Made It Large: Success Stories

Bitcoin

Bitcoin has become the synonym of cryptocurrency so much that people use the word Bitcoin instead of Cryptocurrency.

Litecoin

Litecoin is often said the silver to Bitcoin’s gold. It is much similar to Bitcoin but has a faster block generation rate with faster transaction confirmation.

Ethereum

Ethereum is proud of the fact that it has provided a decentralized platform for smart contracts without any downtime, 3rd party interference, and fraud.

Final Word

Cryptocurrency is a very promising future in the glorious institution of currencies. If you plan to run a successful and growing business for a long future, you must start by putting the foundation for your own cryptocurrency in the present.

To create your own cryptocurrency like Bitcoin, you need a smart technology partner that has a good experience working with future technologies like these.

41 COMMENTS

    • Sure, it wasnt when the Satoshi group created Bitcoin as BTC was created for the darknet users to exchange services for illegal goods or services. Now, its perfectly legal and everyones getting in on creating and ICOs. I have a JavaScript for a token here. All anyone has to do to create their own coin is rename the coin or token on the JS and a few other bits, amount of coins etc Its here if any body needs it.

  1. Hi… These blogs offer a lot of information about Crypto Development.Your blog is incredible. I am delighted with it. Thank you for sharing this wonderful post.

    • Quite an amazing guide, really. I’ve been wanting to do this but didn’t know how to start. Now, I feel a lot more confident to dive in after reading this. Thanks for such an enlightening post.

  2. Thanks for sharing this article! Article is nice. very informative.

    If you want to hire top rated Crypto Developers for Develope ICO development, STO development, IEO development, real estate tokenization, art tokenization, stable coin development, crowd funding platform, local Bitcoin clone, crypto payment development. We are a team of professional blockchain developers.

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    • Dear Sir,
      I see your article. i like to Create my own cryptocurrency. Please contact me.
      I look forward tohearing from you.
      Best regards,

      • Simply read the blog. If youre unsure of the coding, i have a token already coded JavaScript, you only need change the name and a couple other obvious things to have your coin contracted and ready to set in motion. Im sure the admin/admins of this web page will be only to happy to assist you in your white paper.

  3. Stop worrying and start earning with your investment due to new decentralized banking system in the world of currencies.

  4. Thanks for sharing such a useful article here which helpful for crypto lovers who are all interested in cryptocurrency development.

  5. It actually is very informative. As i have mentioned to a couple of posters. The one thing you’re missing is the coding of the token you wish to create. I will see if admin mail me and i will be only to happy to have my code posted on this page. All the creator has to do is change the token name, amount, decimals etc etc Its pretty straight forward.

  6. Can you please send me other details what block chain and mechanism i should use for launching new crypto coin?
    I am a new enterprenur

  7. Hi dear john . Thank you for this interesting article.
    Im already building my coin , i would be happy if you give me some wise advices and guideness.

    I’ll be glad to hear from you
    Thank you dear.

  8. Hi John,
    Thanks for this incredible piece of information, for me it’s could be another step in understanding crypto more in-depth, it would be great to know more about the js token you were reffering to learn more about it 🙂

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