Recently, cryptocurrencies and blockchain have begun to be increasingly used in various areas of human life. They are already successfully used in hundreds of projects, but the technology is still quite young and not widely used. What to do if you are thinking of creating a cryptocurrency yourself, but don’t know where to start? This guide contains information on how a cryptocurrency is created. We will tell you how to create a cryptocurrency yourself and what is more suitable – create a fork of a well-known project or create a token for an ICO.
Is it possible to create a cryptocurrency yourself and why do it?
The short answer to this question is yes, you can. Creating your own cryptocurrency is available to any advanced user. In certain cases, to develop a cryptocurrency “with your own hands” you will not even need programming knowledge: it will be enough just to edit some values in the finished program code. Of course, such projects will not surprise anyone, and creating something more will require deep knowledge in cryptography and software development.
First of all, you need to decide on the tasks that you set for your future cryptocurrency. If you need some kind of internal currency for a project or community, then there is no point in using a separate blockchain . In this case, it is better to create your own token . The Ethereum platform with its smart contracts and the ERC-20 standard, which is supported by exchanges and can be easily implemented into any project, is perfect for this. To create such a project, you only need to replace the base values in the source code of the standard token. However, this method should not be underestimated, because there are many projects that have managed to hold the most successful ICOs .on Ethereum. The main thing is that the project should bring some benefit and be able to attract investments. In such cases, the platform does not play a special role, and a separate blockchain is not always needed.
Well, if you have some unique idea that requires more than the ability to receive and send coins, then you should think about creating your own cryptocurrency. This is quite difficult to do and requires solid programming skills, or better, a full-fledged development team.
How much does it cost to create a new cryptocurrency
The cost of the project directly depends on the method of its creation. Here we will not take into account the cost of advertising, brand development, design, or other costs that will be required for the new Internet currency. We will take into account only the technical component.
- Your blockchain . If you decide to take the difficult path and make a full-fledged project with your own blockchain, you will have to pay the development team. For example, the CryptoLife service offers to create a coin taking into account all your wishes for a certain fee. The cost starts from 0.5 BTC and can go up.
- Fork . It is also possible to create a fork of an existing currency, but the value of such a project remains in doubt unless you make really meaningful and useful changes there. The launch of the currency itself will be free, since you have your own blockchain.
- Token . Well, if it’s enough for you to make an Ethereum-based token, then everything is much simpler here. For sending a transaction that will add your smart contract with a token to the blockchain, you will need to pay a fee of several dollars.
What you need to create your own cryptocurrency
Some users may think that there is some kind of program to create cryptocurrencies. But this process is more complex, and the set of tools used depends on the approach you have chosen. By and large, you only need a computer with the Internet and an installed development environment, as well as a set of certain knowledge and the ability to read guides. Well, and, of course, some financial resources are needed, because even the simplest creation of a token will require a fee for a commission.
Instructions for creating a cryptocurrency
In this section, we will consider two methods: simpler and more complex. In the first case, we will talk about how to create a token on Ethereum, and in the second, how to create a simple fork.
Create a token on Ethereum
The Ethereum platform community decided that smart contracts could be used to create standardized tokens and developed a standard called ERC-20. Its description includes the presence of some features that provide tokens with a minimum set of necessary features. This allows you to use ERC-20 tokens on exchanges and trading platforms without the need to change something in the site every time to get project support. A good example is the decentralized exchange EtherDelta . You can trade on it immediately after the creation of the token and it is absolutely not necessary to even contact its administration. Simply select the contract address of your token and the token with which you want to create a trading pair.
Now let’s describe, directly, the creation. To do this, you need the source code of the standard token, which can be found on the official website of the Ethereum project . There are two versions: minimal with limited functionality and full. We are interested in the complete Copy it and paste it into the development environment.
It is recommended to use a dedicated Ethereum smart contract development environment called Remix-Solidity IDE and available online. It has a convenient functionality that will even be redundant for our task. Moreover, syntax highlighting and code checking for errors will simplify the development process.
It is important to note that all functions in the source code must remain intact, otherwise it will no longer be an ERC-20 token. If you have something to add to the source code, then this should not harm the existing functionality. If you want to see the possibilities of extending the base code, then you can check out the source code on GitHub. There are not only examples from ordinary users, but also files of large projects that really work on the cryptocurrency market. In our case, only the name of the token, its ticker and the total number of available units will be changed.
Now that the project code is ready, it remains to publish it on the blockchain in the form of a smart contract. This can be done using a wallet that supports contracts. It can be the official Ethereum Wallet or, for example, the popular MyEtherWallet. The latter is not very suitable for publishing contracts for beginners, since it uses bytecode and it will be difficult to pass data to the constructor. Therefore, consider the default application.
You will need to open the Ethereum Wallet, go to the “Contracts” section and click on “Deploy New Contract”. In the form that appears, paste the source code of the project and select the wallet from which you want to pay for adding the contract. Subsequently, the address of this wallet will be recorded as the “owner”.
Next, select a contract from the source code using the drop-down menu and enter data into the constructor. Here we indicate the name of the project, the abbreviated name and the number of coins. It remains only to select the desired commission amount, which will affect the speed of the transaction, and then click on the “Send Token” button. To save money, you can specify a minimum commission, since the creation of a token is not an urgent process.
We create a cryptocurrency fork
Now let’s talk about how to create your own cryptocurrency with a separate blockchain . On the aforementioned GitHub, you can find many cryptocurrency projects, since most of them are open source. As a basis, we will take a project of some standard currency with the simplest SHA-256 algorithm. On the project page, click on the download button and save the archive with files to your computer.
Now we need to work with the files. All of them contain the name of the cryptocurrency in different formats. The name can be found both in abbreviated form and in full, it can be written both with a capital letter and with a small one. There are usually a lot of such mentions and it will be extremely problematic to replace them all manually. To solve this problem, you can use special software that will allow you to change the name of the cryptocurrency to yours.
The next step is to reconfigure all network ports and addresses. Here, a user without technical knowledge may already have problems. Network ports will be used as nodes for various operations within the network. Usually four ports are used: two for the main and two for the test network. It should be remembered that ports can only be used by one application, so you need to choose really free ones. All files that contain port information need to be edited accordingly.
You can also edit the algorithm for generating new coins to your liking. The block reward can be changed, its generation time can be increased or decreased, and the emission is limited. Moreover, there is even an option to limit the number of blocks that will be mined per day.
The most obvious change needed is graphics editing. You will need to replace all icons, images, so that the edited software is associated with your product. On this, the creation of the simplest fork can be considered complete.
Creation of a website for a new cryptocurrency
Now that the bulk of the work is done, you’ll need a website. An impressive template for a cryptocurrency website was developed by Bitunet . Its functionality will be more than enough to create an excellent online project related to electronic money.
Everything you need to know about the main features can be found in the table below.
|Main characteristics||Elementor Page Composer||Jet plugins|
|ready-made pages and child themes;||drag-and-drop functionality;||Jet Tabs|
|many graphic elements;||does not require programming skills;||jet tricks|
|the ability to submit reviews using layouts for them;||offers various options for personalizing the site.||jet blocks|
|a countdown timer that draws attention to important sentences;||Jet Themecore|
|charts, tables, graphs, ratings and other options for presenting data.||Jet WooBuilder|
|jet pop up|
Plus to the listed functions – this template will please its users:
- WPML plugin that will allow you to create a multilingual site;
- incredibly easy one-click installation.
Alternative ways to create electronic currency
There are other platforms that offer the creation of cryptocurrency. So, for example, there is a library from independent developers called Open-Transactions , which offers a simple creation of a cryptocurrency. It comes with client and server applications and a set of required APIs. The developers also claim that the transactions made by this system are perfectly protected.
Another way to create a currency is in the CryptoLife service . CryptoLife is intended for those who do not know how to create a cryptocurrency on their own, but have some idea and a clear vision of their project. The site team offers everyone to order the development of a coin for a certain amount. The value of the base currency is 0.5 bitcoins. In this case, the launch of the currency will be free, since you have your own blockchain.
It is possible to order the development of the following parameters:
- Proof type and its parameters
- Block Time Limits
- Test network (testnet)
- Block size
- Wallets for all the most popular mobile and desktop platforms
- Block Explorer
- Paper wallet generator
- Mining pool
- …And much more.
Cryptocurrency in the maximum configuration will cost about 5 bitcoins . The amount is decent, but the developers guarantee the quality of the project. The creation speed is also impressive. It is from 1 to 4 business days. For users who do not want to understand the technical details when ordering, ready-made cryptocurrency templates are also available. The store has been successfully operating since 2013.
Is it possible to create a cryptocurrency for free?
Absolutely free way, probably, will not work. All of them require at least minimal costs, unless you decide to create a fork or even your own blockchain. Using platforms like Ethereum requires a minimum investment of a few dollars and is well suited for beginners who are eager to try a new coin.
Tips & Hacks
Here are some tips to help shape your vision for your future project.
- Think about consumers. First of all, you should think about how ordinary users will use your product. What new things can they find for themselves in your project?
- Reach out to the community. Discuss your future project with cryptocurrency enthusiasts. Take an interest in what critical moments concern the industry at the moment. What currency is the market waiting for now?
- Decide on a development method. If you do not know how to do it right or are not sure about the correctness of your decisions, then it is better to postpone the development and think it over again.
- Start by creating a prototype. Do not immediately try to launch a product on the market. Testing will be useful and will allow you to declare yourself as a responsible developer. Creating a testnet is a good start.
- Think like a burglar. Cryptocurrencies are directly related to users’ money, so security is especially important here. Think about what weaknesses your system will have and how to strengthen them.
- Don’t try to create the perfect product right away. Constantly being in the development process is an absolutely normal practice in the field of cryptocurrencies. That is why developers create roadmaps with plans for the near future. Start small and keep growing your project.
- Find miners. You should think about the fact that the network after launch should be supported by someone and your capacities may not be enough. A good solution could be an agreement with the miners. However, you should understand that you first have to interest them.
- Find investors. If you are convinced that you have a really interesting idea and you can describe all its advantages and features of work, then you should think about finding an investor.
In conclusion, it should be said that creating your own decentralized digital currency is not as difficult as it might seem at first glance. There are already many tools on the Internet that allow you to do this with minimal investment and do not require too deep technical knowledge. Of course, cryptocurrencies created in this way are unlikely to attract a large audience and become major players in the market. However, they allow their developers to gain invaluable experience. In addition, such homemade projects can be used in small communities or projects that require an internal system of calculation.