Investing in the Web3 has been all the rage in recent years. But what if we wanted to create our own cryptocurrency? Here are 7 steps to get our own digital currency from scratch and to introduce it to the market.
Anyone who invests in the Web3 sooner or later wonders who and how could have created one of the many successful cryptocurrencies that crowd the net.
Answering this question is not that difficult and is a task that is really within everyone’s grasp today.
The reasons for doing so range from huge profit potential, which cannot be ignored by speculators, to many other advantages.
How to create your own cryptocurrency in 7 steps
What is the cost? How do I go about making cryptocurrencies? Here is a short guide that could lead you to a portfolio overflowing with your personal digital currencies.
1. Choose the consensus mechanism
Many are switching to this method, which is usually divided into two modes, but it is a complicated process and certainly not for everyone. So it is worth having in mind from the outset the type we will adopt.
Consensus mechanisms are the protocols that consider a particular transaction legitimate and are added to the block.
There are two in particular. Proof of Work, which is older, secure, but also expensive in terms of energy. And Proof of Stake, which is faster, more elastic and less expensive.
2. Choose a blockchain platform
When you choose to create a cryptocurrency, the blockchain you choose will depend on the consensus mechanism you choose.
Some can be created based on Ethereum or other blockchains that allow you to choose a sidechain to support your virtual currency.
If you want to create your own, you will definitely have to rely on an expert.
3. Design the functions of your cryptocurrency
When creating your crypto you have to ask yourself specific questions depending on the project you want to bring to life.
You have to decide on the functioning and functionality of your blockchain and design each of its sections accordingly.
For example, will hosting be on the cloud or on premises or both? You will have to decide whether to authorise privately or publicly, decide what details will be required for execution and engage a team of experts to turn the rules in your head into data for the blockchain.
Then use an online testnet to see if everything works as it should.
4. Establish the internal architecture of your blockchain
Make sure all aspects are in place before launching as you will not be able to change various parameters of the blockchain after it has been started and running.
Decisions regarding the architecture of the network underlying your cryptocurrency might concern information such as reference addresses for transactions or the degree of control you might have over it.
In any case, you have to choose between different types based on your purposes.
Choosing a private, public, permissioned or permissionless blockchain is an important decision when creating your cryptocurrency and can often make a big difference to the end result.
5. Create an innovative and project-appropriate interface
Obviously appearance wants its part, even if it is not always on a par with functionality.
Building a cryptocurrency that can compete with the world-renowned ones needs a good interface, otherwise it will be of no use.
It is necessary to ensure that the web, servers and external databases are more than up-to-date and that the programming of the entire project is done considering the scalability of the blockchain and possible future updates.
A cryptocurrency with an outdated or bad interface has no value in today’s landscape.
6. Check the legal aspects of your virtual currency
It would be nice to be able to make a crypto without having to consider the legal aspects, but this is not the case.
Often you need the advice of a professional, even depending on where you are.
You must be sure that your cryptocurrency is ready, of course, but above all that it respects the laws on cryptocurrency of the country.
In this way, your project is preserved and no sudden surprises can ruin your efforts in creating a new cryptocurrency, safe in the knowledge that everything has been done in accordance with the law.
7. Coining a cryptocurrency: how much does it cost?
While it is affordable for everyone, having a team to support us would be ideal.
However, at this point you can coin your own cryptocurrency and launch it on the market, depending on the tokenomics you choose, i.e. the qualities and mode of launch.
We can coin via smart contract platforms all our cryptos at once, or use mining protocols to coin little by little as is the case with Bitcoin.
But how much does all this cost? If you are just trying to create a simple virtual currency, the cost will be relatively low.
To coin cryptocurrencies, we can use platforms such as Developcoins, which costs around $10,000 to develop, and can be 3-4 times more expensive depending on the complexity of the project.
Read also: Crypto wallets, what are they? Everything you need to know on how to store cryptocurrencies safely