How to make a cryptocurrency step by step

If you are wondering to make a cryptocurrency, you should know that it is a complex process, especially if we are talking about exactly one cryptocurrency with its own chain of blocks and project that supports it. However, if you are looking to create a token, the process may change and may be less complex.

Even so, this time we will show you the differences between these terms, which are sometimes used as the same words to refer to digital currencies such as Bitcoin, Ethereum, Polkadot, among others.

 

 

Difference between creating a cryptocurrency and a token

First of all it is important to know the definitions of both terms. Starting with cryptocurrencies, there is Bitcoin, Ethereum, Solana or even BNB, all are digital currencies that have solid projects that support them, in addition to having their own blockchains.

You can easily intuit that the process of creating a cryptocurrency will be much more complex than developing a token based on an already existing blockchain or network. Since, unlike the latter, the cryptocurrency has its own chain of blocks, while the token is hosted on a specific blockchain ; As in the case of CAKE, the token behind the PancakeSwap dApp, hosted on the Binance Smart Chain, and better known for being the BNB blockchain.

How to create a crypto in 6 steps

Now that you know this information, you should know that creating a cryptocurrency is not as easy as it seems, there are important points to define; such as architecture, development stages, type of consensus, audits, legal verifications, among others.

Step 1: Design a blockchain

In the first instance, to create a cryptocurrency you will require advanced knowledge in programming and blockchain to be able to develop your own successful blockchain. In addition, it will take you a long time, especially since it is an expensive process.

Also, you will have to choose the consensus mechanism and find staff or developers to help you with custom code creation.

Step 2: Define your architecture

It is very important to define or design the architecture that the chain of blocks of your cryptocurrency will have. Since, this will be useful to know what type of blockchain the project under development will have; which can be private, public, with or without permissions.

Step 3: Start development

Now that you have everything defined, or even an idea of ​​what you expect your blockchain to look like, you will need to start developing the code. For this you can help with the other developers who decide to collaborate with the project. And it is recommended that the technical team have advanced knowledge in code development , since changing the already defined principles is quite complex to do.

For this reason, DEVs generally use testnets to test new projects and make sure everything is running smoothly; In case something does not work as planned, you can correct it before minting.

Step 4: Audit your code and cryptocurrency

Once the code has been developed, you will have to do a full audit to make sure you don't find vulnerabilities that could affect your project, allow theft between investors, among others. For this, you can hire a private company such as Certik Blockchain Security Leaderboard. However, it is also possible to do this process on your own.

However, if you start an audit on your own, it will take you longer to mint your cryptocurrency. Therefore, to not only speed up the process, but also provide guarantees to investors and your work team, it is suggested to purchase the services of a company such as the one already mentioned.

Step 5: Get advice on the legal aspect

Unless you are an expert in legal matters, we suggest you hire a specialist to analyze your cryptocurrency and validate that it complies with all legal aspects ; as well as the necessary terms and conditions, for it to debut on the market.

Of course, this will be one of the last steps in the creation of a cryptocurrency, and it is suggested to do it when the chain of blocks is already working . In the same way, it is very important to define legal aspects during the creation of the blockchain, in order to overcome this legal validation process without great difficulties.

Step 6: Mint your cryptocurrencies

Now that you have completed the entire legal process to create a cryptocurrency, you have designed an architecture and defined all its points, it will be time to start minting the cryptocurrency.

It should be noted that the process can vary based on the tokenomy that you have established at the beginning . That is, it can be a gradual minting, in the same way as Bitcoin or other cryptocurrencies, and a fixed supply can also be established. This method of full minting of all tokens is done through a smart contract.

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