Blockchain

How to Create Your Own Cryptocurrency? | Binance Academy

TL;DR

When creating a new cryptocurrency, you can choose to make a coin or token. A coin has its own blockchain, while a token is built on a pre-existing network. Cryptocurrencies rely on blockchains for their security and decentralized nature.

Creating a token requires less expertise and effort than making a crypto coin. A coin will usually need a team of developers and experts to make it. A token still needs technical knowledge, but it’s possible to create them in minutes through the use of other blockchains, such as Ethereum, Binance Smart Chain, Solana, and Polygon.

Your choice of a token or coin will change depending on the customizability and utility you want. Overall, the costs involved depend on the work needed, like external developers and time.

Ethereum and Binance Smart Chain are popular blockchains for creating digital currencies. You can either use established code to create tokens yourself or pay to use a coin creation service. Sidechains are another popular choice as they provide more customization with the main blockchain’s benefits.

Before creating your own crypto, you’ll need to consider its utility, tokenomics, and legal status. After this, your choice of blockchain, consensus mechanism, and architecture are all needed for the development stage. Next, you could consider an audit of your project and a final legal check. While pretty much anyone can create a cryptocurrency, developing a solid project requires serious work and dedication.

Introduction

The idea of creating your own cryptocurrency, use cases, and audience is an exciting one for many crypto fans. But where is the best place to start? There are actually many ways to create coins and tokens. The costs and knowledge also vary based on the complexity of your project. If you’re thinking about creating your own cryptocurrency, our article lays out the very basics for you to get started.

What is a cryptocurrency?

Difference between crypto coins and tokens

Creating crypto coins vs. tokens

Creating a coin

Creating a token

Creating a token on an existing blockchain can leverage its reputation and security. While you won’t have complete control over all aspects of your token, there is still a lot of customization available. There are a variety of websites and tools available to create your own token, especially on BSC and Ethereum.

Should I create a coin or a token for my project?

If you’re looking to push the limits of what a coin or blockchain does, creating a coin with its own blockchain would likely be better. Creating a new blockchain and coin is certainly harder than issuing a crypto token. But if done right, it can bring lots of innovation and new possibilities. Binance Smart Chain, Ethereum, Solana, and Polygon are good examples.

Still, both options will require a lot of hard work along with technical, economic, and market knowledge to succeed.

Top solutions for cryptocurrency creation

Things to consider when designing your crypto

Apart from the obvious choices like your blockchain or creating a coin or token, there are a few other key areas to consider:

Define your cryptocurrency’s utility

Design your tokenomics

Check its legal compliance

Countries around the world have their own laws and rules regarding cryptocurrencies. Some jurisdictions may even ban the use of cryptocurrencies. Consider fully your legal obligations and any compliance issues you might face.

Create your own cryptocurrency in 7 steps

If you’re only creating a token, not every step in the tutorial below will apply. What’s more important would be the three design steps above. Most of our instructions will cover the basics of creating a blockchain first before finally minting your coin.

1. Choose a suitable blockchain platform

For a token, you’ll need to pick the blockchain to mint your crypto on. BSC and Etheruem are popular options, but sidechains can also be a good idea. To create your own coin, you’ll need to think about designing or hiring someone to create a custom blockchain.

2. Pick a consensus mechanism

3. Design your blockchain architecture

4. Begin blockchain development

Unless you have expert development knowledge, you’ll need external help to build your ideas. Once the blockchain runs in a live environment, it’s extremely difficult to change its core concepts and rules. Make use of a testnet to ensure that everything works as planned and ideally cooperate with a whole development team to build your blockchain.

5. Audit your crypto and its code

Auditing companies like Certik can check the code of your blockchain and its cryptocurrency to look for any vulnerabilities. You can then publish the audit publicly and also act on its findings. This process provides some safety assurance for you as the creator and for any potential users or investors.

6. Double-check legal aspects

Now that you have your blockchain running and are ready to mint your cryptocurrency, it’s best to ask for expert legal advice to check whether you will need to apply for permission. Again, this step is difficult to achieve alone and requires outside help.

7. Mint your cryptocurrency

Whether you’re creating a token or coin, you will need to mint the cryptocurrency at some point. The exact method will differ based on your tokenomics. For example, fixed supply tokens are usually minted all in one go via a smart contract. Coins like Bitcoin are minted gradually, as miners validate new blocks of transactions.

How to create a BEP-20 token

To create a simple BEP-20 token, you’ll need some basic coding skills to deploy a smart contract to Binance Smart Chain. You’ll also need to have MetaMask installed and some BNB in your wallet to pay gas fees.

Copy in the contract’s address to BscScan, select [Solidity (Single)] as the compiler type, and match the compiler version used in step 7.

How to get your cryptocurrency listed

Cost of creating your own cryptocurrency

The costs involved are linked to the methods and setup you choose. If you’re creating a coin and blockchain you’ll likely have to pay a whole team over multiple months. A code audit from a reliable team can also cost around $15,000 (USD). At its cheapest, a simple token on BSC can be done for $50. When we average this out, to create a cryptocurrency with some chance of success, you’ll likely need to spend thousands of dollars on its creation, marketing, and community building.

Closing thoughts

If you decide to make your own cryptocurrency, make sure to use our information only as a starting point. It’s a deep topic that takes a long time to understand fully. Beyond creating the token or coin, you also need to think about making it a success post-launch. Studying other projects and their launches to see what worked well and what didn’t can help with creating your own cryptocurrency.

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