How do I create a cryptocurrency?

These days, the word "cryptocurrency" sounds familiar. Although they have no particular interest in it, many people have already heard of it. Combining enthusiasm and mystery, cryptocurrencies are unwittingly developing a growing curiosity about them. Both in financial and technological terms.

Because even if some people have become rich thanks to them, what about their nature? We know that the very first cryptocurrency was created in 2009 by Satoshi Nakamoto. Called Bitcoin, we also know that people who invested long before its current price no longer had to worry about their finances.

Over the years, new cryptocurrencies have appeared, each with equally interesting projects. But the fundamental question is: how were they created? We know that it's banks that create money, but how is it done with a cryptocurrency? Can anyone do it? Are there any prerequisites? As you'd expect, we're going to look at all that in this article.

The difference between a cryptocurrency & a token

A token is a digital asset that can be likened to a cryptocurrency, because it is indexed to a blockchain. The difference between a cryptocurrency and a token is that the sole purpose of a token is not to be used as a currency (e.g. a governance token).

Although this is often the case, a token can have multiple functions, unlike a cryptocurrency which is used exclusively to make transactions. Thus, a token is a form of value derived from an underlying blockchain. The idea behind this explanation is for you to understand the nuance between these two digital assets. Which, although subtle, is still very important.

Because it means that to create your own cryptocurrency, you also need to create your own blockchain. However, if you just want to create a decentralised digital asset, without necessarily creating a blockchain in its own right, all you have to do is use an existing blockchain. The asset in question will then be a token. But in this article, we will only be talking about crypto-currencies and not tokens.

The different ways of creating a cryptocurrency

Starting from scratch

As we stated earlier, one of the ways to create your own cryptocurrency is to create your own blockchain. That being the case, creating a new blockchain, means starting from scratch. But to do so, you'll need some coding prerequisites. You will need to program your blockchain line by line.

Although there are tutorials and other guides for creating a blockchain, starting from scratch is not for everyone. Since this solution requires a fairly high level of programming skills.

For people with the requisite skills, but who are not inclined to create a brand new blockchain, there is a way of "copying and pasting" an existing blockchain and arranging it to suit your needs. This is called a "Fork".

Making a Fork

As we saw above, the Fork is a system that allows you to launch a cryptocurrency by copying the programme of an existing blockchain that you have modified beforehand to suit your needs.

How can this be done? All you have to do is get the Open Source code of any blockchain, then modify it in your own way to create your own blockchain and therefore your own cryptocurrency.

Bitcoin, for example, has already undergone several forks since it first appeared. In doing so, it has given rise to two well-known cryptocurrencies: Litecoin and Bitcoin Cash.

Although it is much more accessible than the first solution for creating a cryptocurrency, it is important to emphasise that this method still requires coding skills. So there are once again a number of prerequisites for creating a cryptocurrency.

But fortunately, for those who don't have the necessary skills to create their cryptocurrency, there is a solution that is both simple and effective: going through a service provider.

Using a specialist platform

One of the easiest ways to create your cryptocurrency is to go through a service provider. In the form of a platform, these companies are known asBlockchain-as-a-Service(BaaS). For these companies, it only takes a few days to develop a cryptocurrency that meets the needs defined by the customer.

In exchange, the customer must pay a certain sum, the amount of which varies according to the specific requirements. So, for those who don't want to go to the trouble of coding a blockchain themselves, this outsourcing solution for creating a crypto-currency is undoubtedly the best choice.

Why create your own crypto-currency?

Significant benefits

For any business, large or small, the creation of a cryptocurrency can be highly beneficial. Whether it's to eliminate intermediaries from transactions, create a secure working environment or ensure complete anonymity for all confidential data.

Cryptocurrencies help to reduce transaction costs in financial transactions, prevent fraud and scams, and provide fast, secure and transparent services. These are all advantages made possible by blockchain technology.

How do you publicise your cryptocurrency?

Doing an ICO

For those who don't know, an ICO, or "Initial Coin Offering", is an alternative fundraising operation using blockchain technology. The principle is simple. When a company needs financing, it issues its own crypto on a market, in the same way as a share is issued on the stock market.

Once this is done, investors can then buy the cryptos of the company in question. Not with fiat currency (Euros, Dollars, Yen, etc.) but with cryptocurrencies (USDC, BUSD, USDT, etc.).

If the company's project proves profitable over time, the crypto issued may increase in value over time. In which case, some investors will sell their cryptos to make a capital gain.

Others will hold on to their cryptos over the long term, so that they increase in value. But also with the aim of benefiting, in the future, from exclusive products or services from the company.

So these investors, who believe in the potential of an emerging crypto and get involved in the development of the latter's project, hoping to make a lot of money in the future, are what we call Early-Adopters.

Perpetual communication

Creating a product is one thing. But getting the word out that it's on the market is quite another. Even if your product is the best in the world, if nobody knows about it, nobody will buy it. This is as true in marketing as it is in creating a crypto project. That's why communication is vital for any organisation.

To date, there are more than 5,000 cryptocurrencies available on the market. Some of them disappear overnight, shortly after their creation. Having a presence on social networks and communicating regularly is therefore essential if you want to survive.

The aim is to maintain this momentum throughout the development of your project, so that you stand out from your competitors and attract not only customers but also investors (e.g. ICOs).