How to Create a Cryptocurrency & How to Make a Crypto Token on Ethereum

The world of DeFi becomes a part of everyday life. Certainly, there is a great interest in this sphere. A lot of people try to join this world by making their own crypto asset. Of course, it's not the easiest way. But just imagine that you can store your funds in your own digital currency and send it everywhere in the world, isn't it exciting?

If you are interested in making a crypto asset, this article will answer all your main questions: how to create cryptocurrency, how much it will cost, what difficulties you can face and how to avoid them. Let's start!

Cryptocurrency Creation

Creating your own digital currency isn't easy, but it gives a great field for opportunities. You can also have the power to design a blockchain platform with optimal levels of security and scalability and issue cryptocurrency for all your needs. No matter if you want to solve an existing problem or innovate upon existing technology, cryptocurrency creation is a great way to achieve those goals.

How Are Cryptocurrencies Made?

If you are going to create a cryptocurrency, you need to know that there are a few different options.

• The first and the easiest way is to establish a new crypto asset on an exciting blockchain such as Ethereum.
• The next level is to modify the existing blockchain's open-source code.
• If you don't want to use any of the existing blockchains – develop your own and a native cryptocurrency on its base.

All these options require at least some technical computer knowledge, in addition to financial and human resources. Let's dig into each possible method to create a cryptocurrency.

Three Methods of Creating Cryptocurrency

Developing Your Own Blockchain

Source: Arctic Wallet Team

Developing a new blockchain with its native cryptocurrency is the most technically demanding method of creating a new crypto asset. It requires an extensive understanding of how blockchain technology works, a strong grasp of programming languages and development tools.

If you decide to build a new blockchain, then you need to do the next steps:

• Choose the appropriate consensus mechanism (operating protocol). The most commonly used consensus mechanisms are proof-of-work and proof-of-stake.
• Design your blockchain architecture. Should your blockchain be private or public? Permissioned or permissionless?
• Audit the new blockchain's code and identify any vulnerabilities.

Despite the difficulties involved with this method, it offers users the most freedom and allows them to create truly unique and innovative cryptocurrency.

Modifying An Existing Blockchain's Open-Source Code

Source: Arctic Wallet Team

If you don't want to create a new blockchain but your cryptocurrency needs to be better than existing, you can modify an existing blockchain's open-source code. It is a complex process that requires strong technical knowledge. After modifying the source of an existing blockchain, you still need to get a professional blockchain audit and obtain legal advice to proceed. When the process is done, you can then mint your new cryptocurrency. 

However, this method has such challenges as scalability, interoperability, and security which must all be considered carefully during the development process. It is important to test the modified code for potential risks and vulnerabilities before deployment to ensure the integrity of the blockchain.

Creating New Cryptocurrency Tokens on Existing Blockchains, Such As Ethereum

Source: Arctic Wallet Team

Creating a new cryptocurrency token on an existing blockchain platform such as Ethereum is a relatively straightforward process. 

The steps involved include:

• Generating a new smart contract;
• Specifying the total supply and pre-mine details;
• Writing the relevant codes in a suitable language such as Solidity.

While advanced technical knowledge is required to create highly customized tokens, free online tools like WalletBuilders can make the entire process much easier - allowing users to create tokens in just a few clicks. 

Ethereum is one of the most popular choices amongst developers for creating tokens, and the Binance Smart Chain or Ethereum platforms provide users with reliable options that do not require professional auditors or lawyers before issuing batches of tokens. After creating your cryptocurrency, you are then ready to mint new tokens and launch your digital currency!

Important things to consider before creating your cryptocurrency

Launching a successful and sustainable cryptocurrency product is an ambitious undertaking. It is necessary to consider various factors before starting, to avoid potential risks and develop an appropriate plan of action. Additionally, it is essential to understand possible rewards associated with creating a new crypto asset and the key features that are likely to lead to a successful product launch. With these things in mind, it will be in the best way possible to create an effective and profitable cryptocurrency.