Make Your Own Crypto: A Simple Guide

Introduction

Just four years ago, there were no more than 10,000 cryptocurrencies in the market. Today there are millions of them. It is difficult to give an exact number because many crypto tokens appear and disappear very quickly. An enormous increase in the number of cryptocurrencies shows that the creation of a new coin or token is not as difficult as one might generally think. This article will explore different types of cryptocurrencies and methods to create a new one.

What is a Crypto Coin?

When people talk about cryptocurrencies, they generally use the words coins and tokens interchangeably. But they are not the same. A crypto coin is a cryptocurrency that has its own native blockchain. Creating a new crypto coin is a costly task, for which you need to invest a great deal of time and money. The expertise required for the task are also beyond the capacity of a single person. It requires teamwork and services of validators later on to run and maintain the network. The most prominent crypto coins are $BTC running on Bitcoin blockchain, $ETH on Ethereum blockchain, $BNB on Binance Smart Chain, and $SOL on Solana blockchain.

What is a Crypto Token?

A crypto token does not have its own blockchain. Anyone can design a crypto token to run on a pre-existing blockchain network. Since mid-2023, you might have witnessed a tremendous growth on Solana network. On X social network, every crypto investor has been talking about Sol memes, the meme tokens running on Solana Blockchain. In less than $50, you can design a new crypto token and launch it officially. Also, it needs a lesser level of expertise than are required to create a new crypto coin.

Creating a New Crypto Coin

As hinted earlier, you need A team of programming experts and fair amount of money to launch a new token. This is so because first you need to design a new blockchain network on which the new coin will work. However, there is an alternative method that is relatively easy. It is called forking. Forking refers to copying an older blockchain and customizing it to prepare a new version for your own coin.

Despite being easier than designing a new blockchain network from scratch, forking still needs an above-par technical and coding knowledge. Moreover, after launching it, you need to form a loyal community to run and maintain the network lest it should dissolve on account of lack of validators. Litecoin blockchain was originally forked from Bitcoin’s code to run its native coin $LTC, but now it operates independently with its own network, nodes, and consensus rules. A few other examples of forking are Bitcoin Cash (BCH), Ethereum Classic ($ETC), and Zcash ($ZEC).

Creating a New Crypto Token

There are a few advantages as well as disadvantages of choosing a crypto token as your new cryptocurrency instead of a crypto coin. The first advantage is that you need very little knowledge and investment. You need not hire a team to do it. After launching a token, you will not worry about maintenance issues as the blockchain network is already running smoothly. The disadvantage is that you do not have full control over the project. If anything wrong occurs to the network, your token is also doomed due to fault of yours.

Considerations before Creation

Utility of the Cryptocurrency

Keeping in view the preceding discussion, your first consideration should be the choice of your new crypto. Decide whether you want to launch a coin or a token. Subsequently, specify its utility. Majority of people think that crypto coins and tokens are all about a medium of exchange against fiat currencies. However, in addition to being digital currencies, they can also be tokens of real world assets. There are tokens the holders of which get voting rights in the given ecosystems. Some tokens are used as fees and incentives on networks. In short, you need to decide beforehand what utility you want your coin or token to serve.

Tokenomics

The term tokenomics refers to token economics. In simple words, you need to decide the factors like total supply, distribution method, and initial pricing. A few coins and tokens come into circulation all at once. Other are unlocked gradually. Whatever the schedule of unlocking is, it must be made clear at the time of launching. Recently, a token named $AEVO cheated its investors by suddenly unlocking and releasing its 90% supply into the market which cause the price of the token to plummet by no less than 99%. Similarly, if you want to launch a stablecoin, it needs to be pegged to a fiat currency appropriately.

Legal Compliance

In many countries, crypto trading is prohibited. If you plan to take initiative in crypto creation, you should first do due research on whether it is allowed in your country. If you discover any prohibiting jurisdiction after you have invested money and time, you will have to regret it.

Steps to Design your own Crypto

First, you have to select a suitable blockchain for your token. If you want to launch a coin, hire a team to design a new blockchain or a forked copy. If you are launching a coin, choose how new blocks are to be added: through Proof-of-Work consensus mechanism like Bitcoin or Proof-of-Stake like Ethereum. Creating a coin also requires you to select from a range of blockchain types. You can select private, public, permissioned or permissionless blockchains, to mention a few.

After creation of a new blockchain, you need to get it audited. Auditing companies like Certik can check the code of your blockchain and its cryptocurrency to look for any vulnerabilities. After going through these 4 steps, you are ready to mint your new crypto. As per your tokenomics, you can mint it all on day one or mint it gradually.

Example of Creating a Token on Solana Chain

Creating a Solana token is simple once you have the basic tools. You begin by installing the Solana command-line tools and the spl-token utility, which together let you create and manage tokens on the network. After setting up your wallet and adding a little SOL for fees, you create a new token mint. This gives you a unique token address and empty supply. You then create a token-holding account linked to your wallet and mint the desired number of tokens into it. If you want a fixed supply, you can remove minting authority so no one can create more tokens later.

You can also create Solana tokens programmatically using Solana’s JavaScript libraries. This method is useful if you want to integrate token creation into an app or automate the process.

Conclusion

Creating your own cryptocurrency is now more accessible than ever, whether you choose a fully independent coin with its own blockchain or a simple token built on an existing network. While tokens are faster and cheaper to launch, coins offer greater control and long-term flexibility. By understanding utility, tokenomics, legal requirements, and the technical steps involved, anyone can turn an idea into a functioning digital asset. With the right planning and execution, your new crypto can become a meaningful part of today’s rapidly expanding blockchain ecosystem.