How to Create Your Own Cryptocurrency Coin
To create your own cryptocurrency is much easier than you think and does not cost you much for the blockchain and code itself. Not even for a full-sized project with all the extra websites needed for coin-sale, block-explorer, and mining function.
I will look into two different approaches depending on how much you can do yourself, your budget, and how much you need others to do for you. This really depends on if you can do programming or have a programmer to help you. I’ll get back with details down the page.
Know the Difference Between a Coin and a Token
Also, we need to be clear on the terms Token, and Coin also called altcoin as there is a huge difference and not much alike on those two even that both are cryptocurrencies, but as Bitcoin, Dogecoin, Litecoin, Ripple, etc. run their own Blockchain, a Token is created as a layer on an existing Blockchain like Ethereum and depending on that Blockchains function, thereby NOT a real coin of its own but a part of an underlying Blockchain.
In my opinion, Tokens is too easy to set up for less than a few hundred bucks and not a serious cryptocurrency project of its own but more like a fund-raising program (ab)used by too many.
A Token does not contribute with any Blockchain technology or new thinking and since it relies on an existing Blockchain it does also not require setup of Block-explorer, Mining server, Node servers as a real Altcoin would do.
By that said we will move on to the real coin as is the main subject in this article. How to create Tokens is for another day.
Creating the code!
Since all code of any Blockchain is open-source, the code itself is easy to come around and is well tested and documented with mostly all child-diseases eliminated. There is not much idea inventing the wheel once again when you already have some solid well-tested code to use.
Building from scratch would also require million-dollar budgets and 1-2 years in the process like a new rumored Libra coin and other solid projects.
Selecting your algorithm
What we need is to pick a Blockchain using an algorithm we want to use. There are 4 well-known types mostly used as:
Of course, there are many other algorithms to use but these 4 are the most stable and well-tested to use for your Blockchain.
All the source code can be found on the Github website with all needed files, updates, and documentation. Now the tough part is you need to know code as C++, Phyton, and others, so in case you DO know coding, you would probably not even have read this article but just done it already.
Setting the parameter on the Blockchain
When you have chosen your algorithm you need to find the settings for how your blockchain works. This part needs some thoughts from your end to define and need to fit the type of coin you create.
Total amount of coins
Bitcoin has a total amount of coins of 21million to be created. After this, no more coins can be mined. As a contrast Dogecoin has an unlimited amount of coins to be created, meaning it will create new coins forever. Looking at those two solutions there is no doubt that the Bitcoins concept allows the price to keep grow as there are more and more people sharing the same coin whereof Dogecoin keeps creating new coins thereby the price will never really get high.
So when you create your coin think about the type and what should be the maximum coin to create.
Mining reward size and halving
You need to figure out your settings for how many coins the blockchain release (create) every time a new block is created. Bitcoin started out with 100 BTC 10 years ago what is then being halved every time block number 210000 has been created. So currently we are on 12.5 BTC soon entering a 6.25 BTC after the next Bitcoin halving.
It is important to balance this setting with your total coin distribution.
Block creation time
Same as above it needs to fit your type of coin project. The creation time is important for how fast it create new blocks. It will also affect the speed of confirmed transactions. Sample: Bitcoin Block-creation is set to 10 minutes so you can not get confirmations faster than that. Some coins are low as 1 minute or less what I would consider as a short-lived coin or low price coin as Dogecoin.
Mining difficulty level adjusts itself in the code as Bitcoin adjusts itself every 12 days approx. You should anyway keep this level low and let it adjust to fit the total hash rate.
I would like to mention that starting a new coin and dump multiply terahertz ASIC mining on it is a bad choice and will force the code to create new blocks immaturely before time as the mining difficulty level has not yet adjusted itself. It is therefore important to start low with mining just enough to keep transactions smooth and then upgrade hash rate over time naturally as transactions grow. Yet another reason to keep mining out of public as then you cannot control this part what will make the block-creation unstable.
Name on your coin and a nice icon
The last is to find the name. Here you need both the full name like “Bitcoin” and the symbol name like “BTC”
You will also need to think of a name like Bitcoin use the name “Satoshi” for coins in decimal size. This will be used in the wallet software together with your logo to make this your own.
Two ways for a none-coder to get the Blockchain code
For most of us none-coders we got two choices left.
- You can buy the source code customized to your needs and install yourself or
- You can buy a full project all included and setup.
The price difference on those solutions starts as 0.25 BTC for the Blockchain source code itself to a full project size for 1.9 BTC everything included.
Be careful where you buy.
The danger about buying is the many scam sites selling without delivering anything. Fake and scam what is 90% of most.
In fact, I know only about one site that delivers what they say and I will detail the site’s products for you here and explain what they do for you and your choices.
Blockchain-Experts is a full project site only. They include all thinkable software, wallets, Blockchain-explorer, mining server, sale site, and management and will set up everything for you.
You can not part select on this site but accept the full project in all its details and for a full project price of 0.25 BTC all included and takes 4-5 weeks to finally deliver it all.
Blockchain-Experts will be your choice if you cannot do some of the parts yourself or simply just don’t want to spend your time on such a big project what is a considerable amount of time to give.
How to order a Blockchain Coin and what you need?
Lets first list up all parts you need to launch a Cryptocurrency project.
- Full node (wallets)
- Blockchain explorer
- Mining and block-creation software
- Your coin sale site or presentation site
- What else?
1. The Full Node wallet to Windows, Mac, Linux
The node as they call it is the blockchain itself and what makes your coin alive. You will need this node (wallets) to all systems so it can be installed on servers and computers by anyone.
The code also needs to be placed on Github with all source code and documentation for anyone to use and contribute with the new code.
The blockchain explorer is an important part to display all transactions, amounts, mining difficulty level, and blocks created. Of course, each wallet can look up the same data from the blockchain but you will need some for the public to view so they know what’s going on with your coins.
3. Mining software
One cannot work without the other. You can have your own blockchain but if you don’t have some kind of mining running to confirm transactions and create new blocks your blockchain is for no good.
So mining software is a must have to setup to keep it alive.
I would not recommend offering to mine for the public as you could quickly face a problem with a 51% attack. You will be better of install to own use and run mining from a few computers is more than enough unless you have hundreds of transactions per minute. In any case, you can add resources to it as you grow. This way you will also benefit from a steady hash rate difficulty level increasing naturally as Bitcoin did 10 years ago.
4. Coin sale site/presentation site
The last thing you need to go public with your coin is your main coin site for presentation, information, details, and download of wallet software. Maybe you also want to sell coins then you need a management program to do this.
On a site like this, you need to focus on design, functionality, and security since it might involve real money transactions. On this part, I strongly recommend looking into before mentioned Blockchain-Experts who deliver top-quality programs, designed and set up with anything you need.
5. What else do you need?
As last part to run a full project you need to get noticed and visible so people can find you.
Here you need
- 5.a Social Media accounts
- 5.b Coin-listing sites
- 5.c Articles on Cryptocurrency News pages
- 5.d Advertising
- 5.e ICO – Initial Coin Offering
- 5.f Crypto Airdrop coin offering
The above is quite a large area to cover itself and I will cover it in a few follow-ups articles on this site in the near future.
If you like my article or have a particular question on the subject, please leave a comment below or register to get the newsletter on the next updates.