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How to create a cryptocurrency

During these last years there has been a growth in the number of cryptocurrencies and investors , both large and small individuals who are beginning to bet on this type of assets.

Cryptocurrencies bring many advantages compared to typical FIAT currencies such as the euro or the dollar. The most important advantage is that it is a decentralized system which does not need a central institution to control the transactions that are carried out.

This entire cryptocurrency system is based on what is known as blockchain or blockchain system .

A disadvantage of this type of digital currencies is the high volatility that have. Many of them are created with the sole objective of speculating and making money by making others lose.

For this reason it is highly recommended invest only in cryptocurrencies that are associated with serious projects and that have a future within these decentralized systems that include Dapps (decentralized applications) or DeFis (Decentralized Finance) .

Cryptocurrencies that do not have any projects and that focus exclusively on token speculation are called memecoins.

This arises as a result of how easy it is to create a new cryptocurrency. But… How can I create a cryptocurrency from scratch?

In this article We will address the two paths that exist to create our own cryptocurrency and provide it with value to launch it on the market.

This tutorial is simply information and does not encourage you to create these assets for pure speculation or deceive other individuals.

Methods of creating a cryptocurrency

Everyone with less than 1000 euros is able to create one quickly and easily. This is due to online applications that allow us to add our token to one of the blockchains already existing such as ethereum.

Before explaining the methods that exist for creating a new cryptocurrency, it is important to understand the difference between cryptocurrency and token.

A token is really what these web pages allow us to do. By paying an amount we can add our digital currency to a block of existing chains such as Ethereum, Binance, Polygon, among others.

By not creating our own blockchain, this asset will be a token . If we have advanced programming knowledge we can develop our own blockchain system and program our cryptocurrency associated with it.

In this case, by creating a specific blockchain for this token, then we can talk about cryptocurrency .

However, this method is reserved for people who have an advanced level of programming.

How to create a token from scratch

There are multiple platforms to create online tokens. We have opted for a trustworthy one cointool call .

We access the page and we will see on the left a section called create token. In this box we can see different blockchains in which we can add our new token.

how to create a cryptocurrency

In our case we have chosen ETH (Ethereum). However, as of today, the one that requires the least investment is the Binance blockchain (BSC).

Options for creating our token

We click on the blockchain we want and we will directly access the new token creation panel. This contains different fields:

  • Token name ( token name ): This is the name that our cryptocurrency or token will have. Some famous names of cryptocurrencies are: Bitcoin, Cardano or Polkadot.
  • symbols ymbol ) : this is the symbol that our token will have. For example, Bitcoin's symbol is BTC or Cardano's is ADA.
  • Initial supply ( initial supply ) : This is the amount of token that we will initially launch on the market. The lower the amount, the more exclusive our token will be.
  • Decimals ( decimals ) - This field simply determines the number of decimal places that the price of our asset can have.

Below we will see a field that shows other configurations:

  • You can burn can burn ) - This means that token burning will be available. Token burning is normally carried out to control the price of the coin. Burn means eliminate from the market. If we burn a lot of it then the price will tend to rise since the amount of asset decreases.
  • You can create ( can mint ) - This option will allow the owner of the cryptocurrency to create new tokens.
  • You can pause ( can pause ) : This parameter allows the owner to stop purchases and sales of the asset at any time for any reason.
  • Blacklist ( blacklist ) - This field allows the creator to prevent certain people from buying or selling this token.
  • Deflation ( deflation ) : This is an interesting field as it allows us to choose a commission that will be charged when other people make transactions with our currency. This is achieved thanks to a smart contract that will be added to the blockchain.

Final steps of token creation

Once we have selected the options that interest us, we create a token. We will see that in order to create it we will need to connect our wallet.

The wallet is a virtual wallet where we store our cryptocurrencies. If you have previously made transactions with platforms like Binance or Coinbase then you will already have your own wallet.

If not, you can download metamask, a Google Chrome extension that acts as a wallet. It's free and you just have to register. The wallet will be where we will store our created tokens.

At this point we will have to pay money to be able to create our cryptocurrency. If we have chosen the Binance blockchain (BCS) we will have to make the payment in its own currency (BNB). On the contrary, if we have chosen another one, such as Ethereum, then we will have to pay one ETH.

Now, by clicking create token we can create it and they will all appear in our wallet.

How to program a cryptocurrency

Programming a cryptocurrency from scratch is quite complex. In this section we will give an introduction to programming new cryptocurrencies and show some courses that teach in detail how to do it.

The first step is to be clear about how blockchain technology works. Once we know how it works we can start implementing code.

The code will use different classes: Block and Blockchain.

The Block class will aim to provide the necessary methods to encrypt said block using the sha256 method. Therefore, the content of the block will be encrypted.

The Blockchain class will be in charge of verifying the veracity of the blocks and adding them to the main chain through proof of work. This concept is known as mining.

You can learn more about the topic in the following programmerclick article.

There are different courses on the online education platform Udemy that teach in detail how to create cryptocurrencies using programming languages ​​such as Python.

We recommend taking the course Blockchain from A to Z: Create your cryptocurrency in Python which currently has more than 800 users and has a score of 4.8/5.

Distribution and liquidity of our new cryptocurrency

So far we have seen how to create a new cryptocurrency. However, once created there is still a long way to go before it becomes a real cryptocurrency.

The next step is to distribute it, that is, people can buy and sell our cryptocurrency so that it can have a price in the market. There are different options to carry out this step.

The most advisable is to use a DEX or better known as a Decentralized Exchange. A DEX allows token exchanges within a specific blockchain.

For example, the PancakeSwap DEX makes use of the Binance (BSC) blockchain and Uniswap works with the Ethereum blockchain.

Thanks to these platforms, our new cryptocurrency will be able to be distributed in the market and be bought or sold by individuals or companies.

The last step is to provide value to our digital currency. We can give you an initial value. However, it will be the market, which under the rule of supply and demand will determine the value of our currency.

We can perform different actions to make the value rise. We can advertise our project and explain why it is interesting to invest in it.

If we have created a serious project with a great future projection, we will see how investors will begin to buy our cryptocurrency and it will rise in value little by little.