How to launch your own cryptocurrency

Hello world

More than 2,500 new coins have appeared on the market in 10 years of the digital industry, and the number is growing every day. Everyone can create an altcoin, but only a few can make it successful and liquid

In May of this year analysts of venture capital firm Heisenberg Capital said that soon all cryptocurrencies will disappear, only bitcoin will remain, and as it approaches the $100,000 price point, altcoins will gradually die out. The statement from experts has sparked much controversy. So far, the first cryptocurrency has struggled to cross the $10,000 mark, let alone the hundreds of thousands.

However, the competition in the crypto market is indeed great, only those projects that have real working tools and products can survive in the digital industry and moreover break into the top 100 ranking of the largest digital coins by capitalization. Therefore, before issuing another coin, it is necessary to understand who it is intended for, what benefits it will bring and what advantages it will have. The way the cryptocurrency is created also depends on the purpose.

Ways to create a digital token

Every coin is based on software code. It specifies the technical characteristics and parameters of the network. When creating a cryptocurrency, the code can be written from scratch or, by taking the source code of bitcoin or other altcoin, remake it for yourself.

The first option is the most complex, suitable for a team of experienced developers who have a lot of cash and are willing to spend several months to several years to release a cryptocurrency.

The second option is to issue a fork of a digital coin. This is essentially creating a clone of a known token, but with critical bugs corrected and new functionality added. For example, there are more than 50 bitcoin forks on the market today, the best known being Bitcoin Cash, Bitcoin Gold, and Bitcoin Diamond.

Most often, when creating an internal token for a service or ICO, developers use specific blockchain platforms such as Ethereum, NEO, NEM, Ripple or Waves. There are also specific frameworks for creating cryptocurrencies.

Usually, such services contain only the blockchain structure and its basic modules, and all additional components are added by developers themselves. The advantage of frameworks is that they allow the free use of off-the-shelf developments. In contrast to using other platforms to create digital tokens, frameworks allow not to overload the project with extra functionality.

Popular resources for cryptocurrency creation

  • GitHub.com is the largest web service for hosting IT projects and collaborative development. Here you can find the right code and software, like the Open-Transactions software package, that allows you to create digital coins.
  • Ethereum is the blockchain platform on which most of the tokens for ICO projects are created.
  • The World Exchange is a platform created by the Ripple team. The service not only allows you to fund your wallet, buy and sell XRP coins, but also to create your own tokens.
  • Hyperledger Fabric – a framework for creating smart contracts and cryptocurrencies, supported by the Linux Foundation.
  • Exonum – another open-source framework for creating blockchain-based applications.
  • WAVES, a Russian blockchain platform for developing digital coins that do not comply with the ERC20 standard.

How much will you have to pay to create a cryptocurrency

You will have to pay around 2 ETH to launch a token yourself by modifying the programming code of a well-known digital coin, for example, on the Ethereum blockchain. Creation of a unique altcoin with specialized knowledge will cost 0.5-1 BTC

It is worth to consider, that often different cryptocurrency creators and services charge additional fees for selecting a consensus algorithm, hashing and changing of mining complexity, test network, as well as for pre-mining, alerting on problems. There is a separate fee for setting up a pool for mining and cranes to distribute coins.

There are quite a few companies today that are willing to create a turnkey cryptocurrency. We requested price lists from some firms and found out that the average cost varies in the range of $100,000. The initial design and prototyping phase of the cryptocurrency is priced separately and costs around $10,000. It is also possible to set up your own team to develop a cryptocurrency together. The average salary for blockchain developers starts from $2,500.