Create Your Own Coin: The Ultimate Guide

Create Your Own Coin: Key Takeaways

• Creating your own cryptocurrency is the goal of many projects.
• Launching a cryptocurrency requires thorough planning.
• Developing a cryptocurrency demands expertise and experience.
• Many decisions have to be made when creating a cryptocurrency.
• You have various options when setting up a cryptocurrency.
• Financing is a crucial factor when founding a cryptocurrency.

Creating Your Own Coins: What exactly is a cryptocurrency?

A cryptocurrency is digital money that uses blockchain technology for transactions. Many examples of such currencies already exist. You may already be familiar with terms like Bitcoin, Ethereum or Ripple. All of these are coins or cryptocurrencies. Particularly interesting: cryptocurrencies operate on the blockchain. This is a network of computers that are interconnected yet can operate independently. In the event of a problem, the other computers can take over the workload. In addition, data on the blockchain cannot be changed or deleted once it has been created; instead, a new entry must be made. This makes the blockchain highly secure against forgery.

For many investors, cryptocurrencies are a lucrative investment. Beyond that, they have become versatile in everyday life. For example, you can pay with cryptocurrencies, trade them like stocks or even apply for a credit card to use digital money in stores. More and more online shops and casinos also accept crypto payments. Furthermore, cryptocurrency is often used in connection with dApps and smart contracts.

How do you successfully bring a cryptocurrency to market?

In principle, a cryptocurrency is not created and issued by the state or an authority, even though it is usually subject to regulatory oversight. This means that, theoretically, anyone can bring a cryptocurrency to market. What matters is that you have the necessary capital and a team of developers with the required expertise in cryptocurrencies. Do not underestimate this step. Creating your own cryptocurrency is not a simple task; it requires a lot of time, effort, patience and capital. In this section we show you how to create your own cryptocurrency and what you need to keep in mind.

1. Coin or Token? Which cryptocurrency is right for you?

The first major decision awaits you right at the start of your project: do you want your cryptocurrency to be a coin or a token? But what exactly is the difference?

A coin is a complete, standalone cryptocurrency. This means you have to develop the coin itself as well as a blockchain. You will also need infrastructure, an experienced team of developers, etc. Another important factor is that developing a coin requires more capital. The process is very complex and extensive—and therefore expensive. In return, you have a completely independent coin with its own infrastructure and don’t have to rely on third-party technology or structures. Moreover, building your own coin offers maximum flexibility, since you develop everything yourself and can influence the functions, decisions, and so on.

On the other hand, a token is a cryptocurrency in which you create the token but not the infrastructure. Tokens usually use a blockchain from another project—frequently the Ethereum blockchain. This route is simpler, faster and requires less capital and fewer resources, since you only have to develop the token, not the blockchain or a complete infrastructure. The flip side is that you have less flexibility in terms of functionality and possibilities. You have to use what the respective blockchain provides. Changes, etc. must be implemented by the provider or operator of the blockchain, and in most cases you have little or no say.

Before you delve deeper into developing a cryptocurrency, you need to be clear about the type of cryptocurrency you want to create. Coin or token—that is the big question. A complex coin is only required in rare cases and for very sophisticated projects. In most situations, a simpler token on an existing blockchain is sufficient.

2. Capital for financing your coin

The next important step—directly related to the point above—is financing your cryptocurrency. Although a coin is certainly the most expensive and labor-intensive option, developing any cryptocurrency always involves high costs, even if you “only” want to create a token. Therefore, it is essential to familiarize yourself with financing and to come up with a concept.

Basically, there are two possibilities: either you have the capital to create your own blockchain and coin—in which case you can get started right away. Or you don’t have enough capital. In that case, you will need to build a dApp using someone else’s blockchain. Another option is to secure funding through an ICO, STO, or another action. This requires considerable preparation and planning, but it is the most common way to obtain financing, as only very few projects have the necessary capital for development and implementation from the outset.

3. Plan an ICO or STO to finance your coin

In most cases, you will not have the capital required to develop a coin. In such a situation, an Initial Coin Offering (ICO) is the most popular way to raise the necessary funds. However, an ICO is itself no easy matter; it must be prepared and planned just as carefully. After all, you have to convince investors to put their money into your cryptocurrency and your project instead of one of hundreds of other projects and currencies. You need a strong idea and incentives to attract investors. You also need a community that supports and promotes your coin. Finally, it is a good idea to create incentives that persuade investors and interested parties to invest in your project rather than another. Remember: there are many cryptocurrencies on the market, so your coin has to stand out to attract interest. If these prerequisites are met, you can usually start an ICO or STO and hope for success.

4. From the idea to coin development—the implementation of your project

Every successful project—in this case a crypto coin—needs an idea. You have to offer the market something that does not yet exist, or offer something that already exists in a way that is better than existing solutions. At the same time, your idea must provide a benefit to customers or interested parties. This is not easy, especially given the sheer number of coins, and it requires careful planning. You must also bear in mind that there are now many thousands of cryptocurrencies, many of which have been on the market longer and into which an investor can put money with less risk. In any case, you need to show investors why they should invest in your coin rather than another cryptocurrency.

It is best to ask yourself whether you would invest in your own project and why. Look at what does not work well in other projects similar to yours and where problems exist. Then think about how you want to solve these problems and outperform the competition. Then you are on the right track. The market is highly competitive and there are many cryptocurrencies. You should always keep this in mind when planning your coin. If your project does not offer the community any benefits, there will also be no investor willing to spend money on your coin.

5. Start small when developing your coin

Developing a full-fledged cryptocurrency is very complex and extensive—especially if you want to create your own coin and do not wish to use another blockchain. In this case, you not only have to program the cryptocurrency itself but also the corresponding blockchain. Some projects even require several blockchains. Additional factors include capital and the resulting costs. Programming consumes a large part of the budget.

We therefore recommend starting small when developing. Create a prototype and the basic structure (MVP). That is all you need to market your project and to attract investors. Once you have achieved this goal, you can use the prototype to raise more capital by continuously expanding your prototype later on. Avoid trying to perfect everything right from the start. In the worst case, you will end up without capital and without a prototype and investors, because you do not have a functioning prototype that you can use for fundraising and marketing.

6. Hire professional developers

For the programming of your cryptocurrency—whether coin or token—you need an experienced team of professional developers. Blockchain, cryptocurrency and the underlying technology are complex fields. Accordingly, you need various developers who not only master diverse programming languages but ideally also have experience with cryptocurrencies.

Just like the project team and advisors, your developers must also convince investors. The best ideas are useless if you cannot turn them into reality. Experts and investors in the crypto sector know the space well and will pay close attention to whether your idea can be implemented by you. A prototype is also useful for this purpose, as it allows the developers to showcase their expertise.

7. Bring in external advisors and experts

Before your cryptocurrency really gets going, you need to put together a team of advisors and experts. External advisors and experts are positions you need for your project but for which your own team lacks the necessary expertise. Experts and advisors should be found both in your own core team and on the advisory council. Remember: as a rule, your team cannot cover all areas. Make sure you fill the most important key positions in the team. Hire external experts for everything else; they will take care of your project in the advisory council. Particularly important in this context is legal advice from an expert.

8. Hire a crypto agency

Developing a cryptocurrency is demanding and expensive—as you have already learned. It is therefore all the more important that someone with experience takes care of the work and ensures your project is successful; otherwise, a great deal of money, time and effort will be wasted. For this purpose, it makes sense to hire a professional agency such as Marketing Faktor. We have been active in the crypto sector for many years, are among the market leaders and are familiar with all questions concerning the development of cryptocurrencies.

Together with you, we will lead your project to success. The services of an agency incur additional costs, but they are worthwhile in this field. On the one hand, they are relatively low compared to the costs of the coin. On the other hand, they make sense because agencies usually have lawyers, developers, marketing experts, etc., on hand and thus can improve your project’s chances of success.

9. Partner with a major exchange

Crypto exchanges are, of course, also interested in gaining new partners—which means new coins are welcome, at least if they have prospects of success and a good team behind them. Having a crypto exchange at your side offers several advantages. The exchange provides assistance that makes your work easier. At the same time, you already have a partner where you can list your coin and who supports you during the ICO or STO. But what is even more important is the fact that you are considered reputable—at least if you work with a well-known exchange. Why is that? Because security is still a serious issue. No one wants to invest €10,000 or €100,000 and then be uncertain whether the money will really be used for development or whether the project might turn out to be a scam.

An exchange supports only coins and projects that are reputable. There are various requirements that a coin must meet to be listed on such an exchange, and these are strictly checked. Do not shy away from these efforts; they will put you in a much better position on the market in the end.

The most well-known cryptocurrencies

Your own coin or another blockchain—which makes sense?

As already mentioned above, one of the first and most important decisions you have to make is whether to create your own coin or whether an existing blockchain is sufficient. In the latter case, you only need to develop a dApp and a token. This decision has a significant impact on the cost and scope of the project.

Which route is right for you is primarily a question of capital, but also of your project’s goal and purpose. If another blockchain already allows you to implement your project, then it makes sense to at least consider using it. After all, as the saying goes, you don’t have to reinvent the wheel—something that applies here as well. In any case, it is worth contacting blockchain operators. They are usually happy to support new projects and may even help you implement new functions you need, at least if implementation is feasible.

Developing your own blockchain only pays off if you have a very complex project or need full flexibility. This approach is very extensive and requires many times more capital than creating a token on another blockchain. Ultimately, however, the decision is yours. Think it through and weigh up the pros and cons. Also consider seeking advice. Marketing Faktor, a professional agency based in Berlin and Munich, will be happy to assist you.

Conclusion and summary

Free consultation

Further articles