A code audit from a reliable team can also cost around $15,000 (USD). 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. Whether you’re creating a token or coin, you will need to mint the cryptocurrency at some point. For example, fixed supply tokens are usually minted all in one go via a smart contract.

You can write your own code to create a new blockchain that supports a native cryptocurrency. If you want to create a cryptocurrency that is truly new or innovative in some way, then building your own blockchain to support that coin is probably your best option. Bitcoin doesn’t fully support smart contracts, which are central to DeFi.

How Long Does It Take to Create a Cryptocurrency?

Interfaces require a server and database to work, plus someone should be ready to program a website or program that allows someone to review and configure data. Now, create your blockchain’s internal architecture and its rules and parameters, such as address and public/private key formats, permissions and how the crypto asset will be issued. Be sure to carefully consider these factors as they cannot be changed without a software upgrade once the platform is running. Whitepapers should also provide insight into the crypto’s tokenomics and roadmap. They should be easy to understand and offer technical explanations of the project’s competence. This also requires a server setup so that wallet testing can begin.

Also, determine if ICOs are allowed in your country before creating an ICO. In addition, in the White Paper, it is necessary to reflect on the legal aspects of the project. Before starting development, define the functions of the asset. Then move on to choosing a name and designing a logo — they will help your token stand out from thousands of others. Before you go all in on a possible shitcoin, research all the details of the project for yourself. Don’t rely solely on what’s popular in the news or what your friends say.

Trading Tools and Learning Center

Gaming might not be the first thing you think of when it comes to crypto investing, but there’s money to be made. Axie Infinity, The Sandbox, and Decentraland are three popular examples of crypto-based play-to-earn games. Other cryptocurrencies may not have the same long-term value – either because they don’t have any actual utility or because the supply is constantly growing, which can affect the value. Another possibility is that the project might be abandoned at some point.

This is a great way to create a cryptocurrency and make a blockchain fork for people who don’t have much coding experience. For example, you can use an automated generator like ForkGen to fork the Bitcoin blockchain with your own chosen parameters and create a new cryptocurrency. If you choose to hire a whole team of professionals to help you, it won’t be that hard to create a cryptocurrency.

Platform Risks

The two most common mechanisms are Proof-of-Work (PoW) and Proof-of-Stake (PoS). You have a few options if you want to create a cryptocurrency. Cryptocurrency fulfills the same purpose – but unlike traditional currencies, it is digital and doesn’t belong to a single country. It is not controlled by a centralized entity like a government or a bank. If one plans to run a successful business in the future, it will be a good idea for them to come up with their cryptocurrency.

People invest in cryptocurrencies for the same reason anyone invests in anything. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. We believe everyone should be able to make financial decisions with confidence. It makes the asset attractive because people who need government infrastructure can access bank accounts, loans, insurance, and various other financial products. For example, having your cryptocurrency can help you make faster payments at a lower cost than bank transfers if you are an international trader.

Is Cryptocurrency Taxed?

Generally, staking comes with less risk for major cryptos like ETH. By comparison, lending brings greater risks, as seen with the collapse of crypto lending platform Celsius. Binance is the best place to buy cryptocurrency if you’re looking for new and hard-to-find cryptos. But for crypto buyers in supported regions elsewhere, OKX offers some hard-to-find features that can supercharge your trading and crypto earnings.

To back up a little, generally, a “security” in finance is anything that represents a value and can be traded. Stocks are securities because they represent ownership in a public company. Bonds are securities because they represent a debt owed to the bondholder. Thoughtfully selecting your cryptocurrency, however, is no guarantee of success in such a volatile space. Sometimes, an issue in the deeply interconnected crypto industry can spill out and have broad implications on asset values.

Create a Suitable Interface

Fortunately, the most popular blockchains, including Bitcoin, Ethereum, Polkadot, Solana, and EOS, are open-source and readily available on GitHub. Alternatively, you can also create a cryptocurrency on one of the existing blockchains, like Ethereum, one of the best platforms for decentralized applications (dApps) and smart contracts deployment. Using the open-source code of another blockchain, you can modify the code to suit your new cryptocurrency coin. This method still requires advanced technical knowledge in order to avoid flaws, loopholes, and other bugs that have even plagued established cryptocurrencies such as Ethereum (in the DAO Heist). However, since the framework is already built and tested, it does mean less development is required.