Cryptocurrency is one of the most searched terms across the world, especially over the past five years. Most traders have started earning profit with these cryptocurrencies like Bitcoin (BTC), and Ethereum (ETH). Many entrepreneurs are thinking of creating their own cryptocurrency to gain more profits from it. Is it possible? Yeah, It’s possible. People who have an idea about Blockchain technology and the crypto mining process often look for various platforms. If you are not aware of this technology, still you can proceed to create your own cryptocurrency from scratch. Before we get into this topic, let’s have a clear idea of what do you need to create your own cryptocurrency?
Things you need to create a cryptocurrency:
If you are not a tech person (or) unaware of the latest technologies, then you should hire a professional cryptocurrency developer to create your own cryptocurrency. They are well aware of each portion of creating it. To create a digital currency, there are various processes such as mining, consensus algorithms, and hashing.
With a better understanding of this technology and also with the help of algorithms, you will get an idea of what type of digital currency are you going to create and how to set it up. There are two kinds of cryptocurrencies as Coin and Token. Let’s get to know what is the difference between both.
Difference between Coin & Token:
Many peoples and crypto traders have a little confused that both coins and tokens are the same. Moreover, it’s not fact. Both are different and also you can trade them for. Coins are those cryptocurrencies that operate on their own blockchain, for example, Bitcoin and Litecoin. Digital currency like Ethereum operates on the existing blockchain network, which is known as Tokens. Coin maintains its own transactional network then which is used by the crypto tokens that verify every transaction. Before you know how to create a cryptocurrency (Step-by-step process), you must be clear about this process.
Tokens are used for creating a smart contract that can be carried for various physical items and reward points. Whereas coins are considered the ideal ones that can be used for a transaction against financial assets. Traders can purchase their coins directly on the digital currency market, whereas the Token is sold through ICO (Initial Coin Offering) events that can be exchanged for famous crypto coins like Bitcoin (BTC) or Litecoin (LTC).
What will you need to create a cryptocurrency?
The difference between the coin and the token is clear. Let’s move forward with the cost of creating a cryptocurrency. Note down the things you should need to proceed with the development process.
White Paper development & Project concept:
The first thing required you need to build a new cryptocurrency is White Paper, which contains the entire information about your cryptocurrency idea. This white paper will help you to get confidence among your investors like how much profit will earn from this Coin (or) Token.
The following steps are required to create a white paper,
Choose the base crypto coin or smart contract for developing the characteristics of your cryptocurrency.
Make a legal framework for your coin or token.
Explanation of values and specifications of your project.
Plan your Initial Coin Offering (ICO).
Outline the roadmap which includes the development of the project.
Handling financial and legal matters.
There are many regulatory issues in developing the legal concept of the cryptocurrency which include legal liability, and SEC prosecution.
Technology & Algorithm:
In this step, you need an expert to develop the technological framework, promo website, personal accounts, digital wallets, and more features. Once you decide to proceed with the coin or token, your approach will differ in both cases.
Initial Coin Offering (ICO): In this process, an investor account is created that involves more expenses in terms of marketing and inviting investors across the globe.
Initial Exchange Offering (IEO): In this process, you don’t need an investor account as everything falls under the accountability of cryptocurrency exchanges.
Cost to Create a Cryptocurrency:
When it comes to the cryptocurrency business, the fact that market is increasing every second for each trade. This business is growing three times higher when compared to the other trading models in this industry. If you are looking to proceed with this business, this will be the right time to prepare your business model.
After COVID-19 was declared as a pandemic time, the volatility of this industry is at a higher level. One of the best examples is the variation of Bitcoin (BTC) over fee years. The cost of a Bitcoin (BTC) is $9.35 in 2012 and it reached up to $38,855.96 in May 2022.
Despite the COVID lockdown, people are switching to digital currencies as their cash and fiat currencies are not preferred. So, this is the right time to expand your business worldwide. When it comes to creating a cryptocurrency, it’s very easy when compared to the other business models.
The cost of creating a cryptocurrency might vary depending on the features and built. Developers will understand the need for rich features and custom build that your cryptocurrency will require. However, you need complete guidance while creating your own cryptocurrency. So, it’s very essential to hire a professional who is the right choice for you. Nodalsoft Technologies provides the best approach to every feature mentioned in this content. We are the top-tier cryptocurrency development company that offers the best and most professional cryptocurrency development services worldwide.
So the idea of creating a cryptocurrency is clear now. Choosing the best cryptocurrency development company will provide the best cryptocurrency development services and provide answers on How much it costs to create a cryptocurrency from scratch?. The clock is ticking now, and it is the best time to consult with our technical team which will help you to decide on the best approach to the development process accurately.