With the development of blockchain technology, more and more people are interested in how to create a cryptocurrency. Actually, there are some ways to do this.
Cryptocurrency is a new phenomenon in our world, and though it is more than 11 years old, it is still being misrepresented by many. While some believe it to be a new form of money, others consider it just a buzzword. However, there is so much more to the story.
Cryptocurrency is a decentralized digital currency that uses encryption techniques to regulate the generation of currency units and to verify the transfer of funds. Anonymity, decentralization, and security are among its main features. Cryptocurrency is not regulated or tracked by any centralized authority, government, or bank.
Today, more than 1,600 types of cryptocurrencies, including the most popular ones like Bitcoin, Ripple, and Ethereum, are available and the number is still growing.
You can make cryptocurrency by creating a totally new blockchain with a coin or by forking an existing one and creating a token. There are many online tutorials about how to create a cryptocurrency, although all of them require at least basic coding skills and an in-depth understanding of blockchain.
Ways to Create a Cryptocurrency
Creating a coin
This is not a good option if you are looking for an easy and quick way to create your own cryptocurrency free of charge. You should be an experienced professional in decentralized technologies or have a technological expert.
To create a coin it can take only 5 minutes. You just need to copy the code of Bitcoin, add a new variable, or even change the value of something, and you have your blockchain and coin. Besides, you should understand the code and how to change it and this requires extensive coding skills.
Another thing is to maintain, support, and promote the coin because you have to create the whole logic of blockchain to launch your coin. If you hire a team of professionals to cope with the task, it would save you more time, but you would have to pay a development team. If you have money for this, go for it.
Creating a token
This is an easier way to become a currency creator. On the one hand, you have complete control over the blockchain which is great, but on the other hand, this means increased development time, significant spending, and much more.
Fork cryptocurrency is created on top of an existing blockchain by utilizing the trust, popularity, and consensus mechanism of the underlying technology. If you build a token on top of a strong blockchain, like Ethereum, it means that your token runs on a secure network which is protected from fraudulent attacks. The creation of token is not so costly as far as money and time are concerned because you utilize the existing decentralized architecture and implemented consensus mechanisms.
This table shows the advantages and disadvantages of building coins or tokens:
Popular Solutions for Making a Cryptocurrency
To create a token there are a few blockchains that provide the means for it. The most popular tools are Ethereum, NEO, and EOS, they are also relatively easy to use.
This tool became the first blockchain which offered token creation service. As it is mature and has a strong position on the cryptocurrency market, it has an exceptional level of trust. If all tokens are built on Ethereum, they will use the ERC-20 standard. Moreover, the documentation is well written and organized, which makes the development process easier. A token on Ethereum can only be written in its own programming language - Solidity, but with the HTTP API you can create dApps in any language.
NEO blockchain is aimed at the smart economy and utilizes the NEP-5 standard. Almost any high-level programming language can be used including C#, Java, Python, and Kotlin to create your own token on top of it, unlike Ethereum. HTTP API is available for interaction with the blockchain.
EOS tokens use the EOSIO.Token standard and can be created with C++ or any other language that compiles into WebAssembly. The blockchain offers great scalability, a huge number of transactions per second, and cost efficiency due to the lack of a truncation fee.
This table shows the main aspects of creating a new cryptocurrency with Ethereum, NEO, and EOS.
Since it is possible to create a new cryptocurrency by yourself following any "make your own cryptocurrency" tutorial, do not forget that only a team of professionals can choose the best stack of technologies and finish the development process in record time.
Follow this article to find out more about the main technical and business aspects of cryptocurrency creation.
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