Did you know the cryptocurrency industry is worth more than $3 trillion worldwide? Crypto isn't a passing trend or something that will fizzle out at some point in the future.
It's a major player in the financial markets around the globe. And the technology behind crypto is revolutionary and will be around for a long, long time.
There are currently thousands of cryptocurrencies available for purchase. Wondering how to make a cryptocurrency of your own? The source code for most cryptos is actually open source, so you can see and copy it free of charge.
Buy why would you want to create a cryptocurrency? Keep reading our cryptocurrency guide below to find out now.
Why Make a Cryptocurrency
There are many reasons to launch your own cryptocurrency. Most people do it to raise funds.
When you launch your cryptocurrency, you'll sell the initial stock of coins. That could mean a big payday for you if you sell out your initial offering.
Of course, with thousands of cryptocurrencies launching every week, it's much harder than it used to be. But if you have a business plan for your cryptocurrency and a reason for investors to buy in, you can market your project leading up to the launch and hopefully raise capital to fund a startup or new product development.
How To Make a Cryptocurrency
Making a cryptocurrency is easier than most people realize. However, it pays to have a knowledgeable team working on the project if you hope it will take off.
Here's what you need to know about creating your cryptocurrency.
Token or Coin?
The first step in creating a cryptocurrency of your own is deciding what kind. A coin or a token?
Many people use these terms interchangeably, but they actually mean two different things.
A coin is a completely unique cryptocurrency operating on its own blockchain. Its performance, security, and value are separated from all other cryptocurrencies.
Bitcoin has its own chain, as does Ethereum, Solana, Cardano, and many other coins.
A token is a cryptocurrency on top of an existing blockchain. Many new cryptocurrencies, like Ethereum, are actually platforms where other developers can launch projects.
So many people have created tokens that leverage the Ethereum network. Basic Attention Token (BAT), Bancor (BNT), Enjin Coin (ENJ) are examples of tokens on the Ethereum blockchain.
Why choose one or the other? The benefit of creating a crypto token is that you use an existing blockchain. The infrastructure already exists, so the process is streamlined.
Want to create your own coin? Then you need to build an entire blockchain and financial ecosystem.
Creating a Crypto Token
Most people interested in creating a cryptocurrency should launch a token that utilizes a reputable blockchain, like Ethereum.
That way, you don't have to worry about the underlying technology, as some of the smartest people on the planet are already managing that. Your token uses the same security protocol of one of the most trusted, decentralized ecosystems in existence.
To get started, choose a blockchain. Aside from Ethereum, NEO and EOS are popular blockchains for launching new tokens.
Each has its own compatible programming languages that your developers will need to be fluent in. Ethereum uses Solidity, which is Ethereum's own programming language.
NEO is compatible with many popular languages like C#, Java, or Python. And EOS is compatible with C++.
You'll also want to compare the consensus mechanisms used by each blockchain, the fee range for transactions, the token standard, and a handful of other factors.
Define the Plan for the Token
Before the development of the token starts, you need to have a plan in place that guides the process and the end results.
Define your "why" for launching a token. Many companies launch an ICO (initial coin offering) as a means of fundraising for a startup or for a new product.
There needs to be a strong reason why the token exists and why investors should purchase it. What do they get out of it? Beta access to your products or services? Future payouts?
Build a Dev Team
It's possible to follow a few YouTube tutorials on duplicating a smart contract and creating a new token without any technical knowledge. But there's no point in going through all of that work unless you have a proper development team behind the project.
Investors aren't going to buy a cryptocurrency that was launched by someone who doesn't know what they are doing.
Before getting started, build a team who is fluent in the required programming language.
Smart Contracts
Creating a new crypto token on an existing blockchain is the process of writing a new smart contract. Smart contracts are code that is executed automatically on the blockchain.
Your goal is to create a smart contract with all of the rules that will govern your crypto token. These rules cannot be changed once the contract is launched, so developing a solid contract takes a lot of trial and error.
Create an ETH-Based Token
Creating tokens on Ethereum is getting easier every day. Certain companies and platforms streamline the process for you, handling all the behind-the-scenes stuff when it comes to contracts.
What's left for you to do is to set simple parameters using a clean, simple interface.
Moralis is one such platform you can use. Moralis has seen tremendous growth in recent months, received large-scale funding, and is the one-stop shop for developers in web3, from newbies to experts.
Once you decide on a platform, you'll need to set up an ETH wallet like MetaMask, add some ETH to your wallet to pay for transaction fees during the setup process, and acquire an ETH node (or access one through Moralis) to interact with the network.
You'll then use a programming platform, import an existing package, and add some basic imports to customize the code of your smart contract.
It sounds hard, but it's a lot easier than it used to be when using an existing platform.
Create a Bitcoin Fork
One of the easiest ways to create your own cryptocurrency is to launch a fork of bitcoin. A fork is what happens when someone wants to change the protocol for bitcoin.
Bitcoin itself has never changed. But people who want to "improve" bitcoin will take the source code, change it, and now operate a fork. It utilizes bitcoin's transaction history up until that point, but then the new bitcoin-based blockchain forks into a new direction, while the original bitcoin blockchain is unaffected.
Many cryptocurrencies have launched this way. Some of the most popular are Bitcoin Cash, Bitcoin Gold, and LiteCoin.
You can create your own bitcoin fork automatically, without code. Platforms exist that let you set your own custom parameters, and it will generate the code for you.
This might be the easiest DIY option for launching a cryptocurrency.
Alternatives to Making a Cryptocurrency
Making a cryptocurrency of your own is a lucrative opportunity. But unless you are building a long-term project with a unique value proposition, it's probably not worth it.
Most investors view new cryptocurrencies as scams since most are. Here are some better options for making money in the cryptocurrency world.
Buy Established Crypto
There are thousands and thousands of cryptocurrencies on the market today. Since they are quite easy to launch, many people and companies are creating a cryptocurrency of their own.
But most of these new cryptocurrencies will fail. Without a proper plan in place and a valid reason for its existence, there's no real reason for investors to choose a brand new, high-risk crypto like yours.
Instead, they'll stick with the cryptocurrencies in the top 100 by market cap, and most will stick within the top 20.
Instead of spending all of that time and energy trying to create one of your own, just follow and invest in reputable cryptocurrencies with a solid track record.
Buy bitcoin, Ethereum, Solana, and the other tokens listed in the top 20 if you want to grow your wealth over time in a less risky way.
You can buy crypto online, or you can do so in person with cash. Click this link to learn how to find a bitcoin ATM near you, so you can acquire crypto today.
Create an NFT Collection
Want to create something of value that leverages blockchain technology but poses less risk for both you and your potential investors? Create NFTs instead of a cryptocurrency.
The NFT market has blossomed in recent years, developing a cult-like following, including art collectors, investors, and speculators. New NFT artists are finding success by creating original collections of artwork.
Not only can you mint and sell the NFTs upfront, but you can automatically collect royalties on the sales of your NFTs forever. Each time users buy and sell your work on secondary marketplaces; you get a royalty.
Many artists and brands have built out NFT collections that earn them royalties every single day, becoming a valuable source of income.
Investors and collectors are more likely to buy artwork from new artists than they would be to buy a new cryptocurrency from an obscure founder.
Create or Invest?
Now that you know how to make a cryptocurrency, you can decide if it's worth the effort. Or you can decide to simply invest in established cryptos for the chance of a more secure ROI.
Creating a cryptocurrency isn't hard. But giving investors a reason to purchase it is.
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