Summary

When creating a new cryptocurrency, you can choose to create coins or tokens. A coin has its own blockchain, whereas a token is built on an existing network. Cryptocurrencies rely on blockchain for their security and decentralized nature.

Creating crypto tokens requires less skill and effort than creating crypto coins. Coin creation usually requires a group of developers and experts to create it. Token creation still requires technical knowledge, but you can create them in minutes using other blockchains, such as Ethereum, Binance Smart Chain, Solana, and Polygon.

Your choice of token or coin will change depending on customizability and desired utility. Overall, costs depend on the resources required, such as external developers and time.

Ethereum and Binance Smart Chain are popular blockchains for creating digital currencies. You can use existing code to create your own tokens or pay to use a coin generation service. Sidechain is another popular choice, as it provides more customization with key blockchain benefits.

Before creating your own crypto, you need to consider its utility, tokenomics, and legal status. Then, the blockchain, consensus mechanism, and architecture of your choice are required for the development stage. After that, you can consider an audit of your project and a final legal check. While anyone can create a cryptocurrency, developing a solid project requires a lot of effort and dedication.


Introduction

Creating a cryptocurrency with its own use and audience is an attractive concept for most crypto enthusiasts. However, how to start? In fact, there are many ways to create coins and tokens. Costs and knowledge required will vary based on the complexity of your project. If you intend to create your own cryptocurrency, this article outlines the basics for you.


What is cryptocurrency?

Cryptocurrency, also known as crypto, is a type of digital asset with several uses. These assets are primarily a way to digitally transfer value, including monetary value, ownership rights, or even special voting rights. Crypto is different from other digital payment systems, because it originates from blockchain technology. This makes cryptocurrencies not tied to a central entity, such as a government or bank.

Bitcoin is the most famous example of a cryptocurrency. Bitcoin has a simple purpose, namely transferring monetary value to anyone around the world without the need for an intermediary. Its blockchain records all transactions and ensures network security and stability.


Difference between crypto coins and tokens

In general, cryptocurrencies can be divided into two categories: coins and tokens. The difference between the two is simple. Coins have their own native blockchain, for example like Bitcoin. Ether (ETH) has the Ethereum blockchain. Typically, coins have a certain utility in the overall network, such as paying transaction fees, staking, or participating in governance.

The token is built on an existing blockchain. Its role may be similar to that of a coin, but the token primarily has utility in its own project. One example is PancakeSwap's CAKE on the BNB Smart Chain. You can also use it to pay for certain transactions in the PancakeSwap ecosystem, such as minting Non-Fungible Tokens or entering sweepstakes. However, CAKE does not have its own blockchain, so it cannot be used in every application on BSC. The same goes for the thousands of ERC-20 tokens issued on the Ethereum blockchain. Each token is part of a specific project with different uses.


Making coins vs. crypto tokens

As mentioned, creating tokens is much simpler than creating coins. A coin requires you to develop and maintain a blockchain. You can fork another existing chain, but this doesn't solve the problem of finding users and validators to help your network survive. However, the potential for success with a new coin can be higher than simply creating a token. Here is a summary of both crypto options:

coin

Token

Runs on its own blockchain network

Can be built on existing blockchains with a wide user base

Requires blockchain knowledge and advanced coding skills

It's easy enough to build with existing tools and open source code

Blockchain development is more expensive and takes time

Token development is faster, simpler and relatively cheap


Make coins

Creating a new coin can take a lot of time if you are developing your own blockchain. However, forking an existing blockchain can be done quickly and used as the basis for your new coin. Bitcoin Cash (BCH) is an example of a forking project. To do so, you still need a high level of blockchain and coding technical knowledge. The success of your project will also depend on a new user base for your blockchain network.

Create tokens

By creating tokens on an existing blockchain, you can take advantage of its reputation and security. While you won't have complete control over all aspects of the token, there is still a lot of customization that can be done. There are various websites and tools available to create your own tokens, especially on BSC and Ethereum.

Should I create a coin or token for my project?

A token is usually enough for Decentralized Finance (DeFi) applications or play-to-earn games. BSC and Ethereum have great flexibility and freedom for developers to use.

If you want to expand the usefulness of a coin or blockchain, creating a coin with your own blockchain would be a better choice. Creating new blockchains and coins is of course more difficult than issuing crypto tokens. However, if done right, this will bring many innovations and new opportunities. Binance Smart Chain, Ethereum, Solana, and Polygon are good examples.

However, both options still require a lot of effort and technical, economic and market knowledge to be successful.


The best solution for cryptocurrency creation

Some of the most popular solutions for creating cryptocurrencies are BSC, Ethereum, and Solana. All of these networks provide a way to create a variety of tokens based on existing standards. The BEP-20 and ERC-20 token standards are prime examples that can be supported by almost every crypto wallet.

ERC-20 belongs to the Ethereum blockchain, while BEP-20 is part of the Binance Smart Chain (BSC). Both networks allow the creation and customization of smart contracts that allow you to create your own tokens and decentralized applications (DApps). With a DApp, you can create an ecosystem that provides more usability and functionality to tokens.

You could also consider a sidechain that uses the security of a larger chain, such as Ethereum or Polkadot, but also provides some customization. Polygon Network is related to Ethereum and provides a similar experience, but is cheaper and faster to use.

After choosing a blockchain, you need a method to create tokens. With BSC and other blockchains based on the Ethereum Virtual Machine, the process is quite simple. You can also find ready-made tools that create tokens based on the parameters and rules you provide. These tools are usually paid, but provide a more practical option for users who are unfamiliar with smart contracts.

If you want to create your own blockchain and coin, you will likely need a group of blockchain developers and industry experts. Even if you are considering forking a blockchain, such as Ethereum or Bitcoin, there is still a significant amount of work required to set up your network. This includes encouraging users to act as validators and run nodes to keep the blockchain running.


Things to consider when designing crypto

Aside from key considerations such as blockchain or the option between coins and tokens, there are several other important areas to consider:

Determining the utility of cryptocurrency

Cryptocurrencies can have many roles. Some function like keys to access services. Some even represent stocks or other financial assets. To understand and map the crypto creation process, you need to define its features from the start.

Planning tokenomics

Tokenomics are the economics that govern your crypto, such as total supply, distribution method, and initial price. A good concept can fail if the tokenomics are not right and users are not incentivized to buy cryptocurrency. For example, if you create a stablecoin but can't peg it properly, no one will want to buy or own it.

Different countries have their own laws and regulations regarding cryptocurrencies. Some jurisdictions may even prohibit the use of cryptocurrencies. Thoroughly consider your legal obligations and any compliance issues you may encounter.


Create your own cryptocurrency in 7 steps

If you are just creating a token, not all of the steps in the tutorial below will apply. What is more important are the three design steps above. Most of our instructions will cover the basics of creating a blockchain first before moving on to the step of minting coins.

1. Choose a suitable blockchain platform

For a token, you need to choose a blockchain as a place to mint crypto. BSC and Ethereum are popular choices, but sidechains can also be a good choice. To create your own coin, you need to design or hire someone to create a custom blockchain.

2. Choose a consensus mechanism

If you are creating your own blockchain or are unsure of which blockchain to choose for your token, consider the desired consensus mechanism. These mechanisms determine how participants confirm and validate transactions on the network. Most blockchains use Proof of Stake, as they have low hardware requirements and a wide range of variations. Proof of Work, as used in Bitcoin, is considered by some to be a safer option, but is often expensive to administer and not very environmentally friendly.

3. Design the blockchain architecture

This step is only necessary if you are creating coins. Not all blockchains allow the public to validate transactions or run nodes. The decision between having a private, public, permissioned, or permissionless blockchain is an important one. Your blockchain architecture will depend on the actions you want your coin and project to perform. For example, a company or country that creates coins could run a private blockchain to gain more control.

4. Start blockchain development

Unless you have advanced development knowledge, you will need external help to build your concept. Once a blockchain is running in an active environment, it will be very difficult to change its core concepts and rules. Leverage testnets to ensure that everything works as planned and work closely with the entire development team to build your blockchain.

5. Conduct an audit of crypto and its code

Audit companies like Certik can examine your blockchain code and cryptocurrency for vulnerabilities. Then, you can publish the audit publicly and also respond to its findings. This process provides certain security guarantees for you as a creator and for potential users as investors.

Once your blockchain is running and ready to mint cryptocurrency, the best thing to do is seek expert legal advice to check whether you need to apply for permission. Again, this step is difficult to achieve alone and requires outside help.

7. Print your cryptocurrency

Whether you create tokens or coins, you will need to mint cryptocurrency at some point. The exact method will vary depending on your tokenomics. For example, tokens with a fixed supply are usually printed all at once via smart contracts. Coins like Bitcoin are minted in increments as miners validate new blocks of transactions.


How to create BEP-20 tokens

To create a simple BEP-20 token, you need basic coding skills to deploy smart contracts to the Binance Smart Chain. You also need to have MetaMask installed and have BNB in ​​your wallet to pay gas fees.

1. Make sure you add BSC mainnet to MetaMask. You can find detailed instructions in our Connecting MetaMask to Binance Smart Chain guide.

2. Open Remix, which is an online application for developing and deploying smart contracts on a blockchain compatible with the Ethereum Virtual Machine. Right click on the [contracts] folder, then click [New File].


3. Name the file "BEP20.sol".


4. Make sure you set the programming language as [Solidity]. Otherwise, your smart contract will not work. You can do this by clicking the icon on the bottom right side as shown in the image.


5. Copy the BEP-20 smart contract code to your file. You can find more information about code parameters and functions on GitHub.


6. Change the name, symbol, decimals, and totalSupply for your coins. Here, we have chosen Binance Academy Coin (BAC) as an example with 18 decimal places and a total supply of 100,000,000. Don't forget to add enough 0s for the 18 decimal places.


7. Next, you need to compile the smart contract. Click the icon shown below on the left side of the screen, check the [Auto compile] and [Enable optimization] boxes, then click the [Compile] button.


8. Click the [ABI] button to copy the contract ABI.


9. Click the highlighted icon below on the left side of the screen. Select [Injected Web3] as your environment, then allow MetaMask to connect to Remix. Finally, make sure you have selected your BEP20 contract before clicking [Deploy].

10. You will now need to pay a transaction fee through MetaMask to deploy the contract to the blockchain. Once the smart contract is live, you need to verify and publish the contract source code.

Copy the contract address into BscScan, select [Solidity (Single)] as the computer type, then match the compiler version used in step 7.


11. Next, right-click on BEP20.sol in Remix, then press [Flatten]. Then, you need to give Remix permission to flatten the code.


12. Copy the code from BEP20_flat.sol into the field, then ensure that [Optimization] is set to "Yes". Then, click [Verify and Publish] at the bottom of the page.


13. You will now see a successful splash screen. With the verified code, you can mint tokens via BscScan using the _mint command implemented in the contract. Open the contract address in BscScan, then click [Write Contract], then click [Connect to Web3] to connect your MetaMask account.



14. Navigate to the bottom of the page to the "Mint" section, then enter the number of tokens you want to mint. We're going to print 100,000,000 BAC. Don't forget to add the decimal, which in this case is 18. Click [Write], then pay the fee in MetaMask.


15. You will now see that the token has been minted and sent to the wallet that created the smart contract.



How to get your cryptocurrency listed

Listing your coin or token on a cryptocurrency exchange like Binance can deliver your crypto to a wider audience in a safe and regulated manner. If you successfully create and develop a solid cryptocurrency project, you can fill out the online application form from Binance for listing and/or direct distribution on Launchpad/Launchpool.

Each cryptocurrency goes through a rigorous due diligence process and you will need to periodically notify Binance of your progress throughout your application. You also need to accept BNB and BUSD in your cryptocurrency ecosystem, such as providing them as liquidity or accepting them during an initial coin offering (ICO) or token sale.


The cost of creating your own cryptocurrency

Costs included will relate to the method and setup selected. If you build a coin and a blockchain, you're likely to have to pay the entire team within a few months. A code audit from a reliable team can cost up to $15,000 (USD). A simple token on BSC can be settled for as little as $50. If you average it out, to create a cryptocurrency with any chance of success, you would likely have to spend thousands of dollars in creation, marketing, and community building.



Closing

If you decide to create your own cryptocurrency, be sure to use our information only as a starting point. This is a deep topic that will take a long time to fully understand. Apart from creating tokens or coins, you also need to think about how to achieve success after launch. Studying other projects and their launches can help in creating your own cryptocurrency.