How much does it cost to create your own cryptocurrency? (2024)

Generally, the average cost of most cryptocurrency projects ranges from $2,000 to $50,000. These numbers depend on a few factors you may want to consider before you create your own cryptocurrency.

In this article, we have reviewed the different points that affect the price of cryptocurrency development.

By the end of this guide, you should comfortably have taken notes of the functionalities you want your cryptocurrency to have, and how much it’s going to cost you.

Based on our findings, the cost of creating cryptocurrencies largely depends on your budget, and what you hope to achieve and this could run up from hundreds of dollars to thousands.

While you might be confused as to how to go about creating cryptocurrencies, this article was put together to answer your questions and help you get a hang of how to create your own cryptocurrency.

Just before we go on to cost, it is wise to have a brief understanding of how cryptocurrencies are made.

Check this out if you would love to learn more about what cryptocurrencies are.

How are cryptocurrencies made?

If you want to learn about how cryptocurrencies are made, it is important to note that regardless of how simple it might be, basic knowledge of the technical aspects of computers is required.

After you’ve made the decision to create your own cryptocurrency, the next thing that comes to mind is whether you want to make a token of a coin.

It is highly important to address this first-hand before you move on. Take note that while tokens are built on pre-existing networks, coins have their own designated blockchains, and all cryptocurrencies are made secure and decentralized using blockchain technology.

Creating coins and tokens comes with different levels of difficulties, when it comes to creating cryptocurrency coins, a lot of expertise including a team of Devs is required in contrast to the creation of tokens that require less efforts and technical expertise.

Interestingly, you can create tokens using already existing blockchains like Binance, Polygon, Ethereum, Solana or Smart Chain, and this can be done in a few minutes.

Important factors to consider when creating cryptocurrencies

Here are some of the important factors to consider when creating cryptocurrencies

• Ideate
• Get a development team
• Consider the legal implications
• Conception & White paper development
• Implement Initial offering (ICO)
• Listing the cryptocurrency on crypto exchange platforms
• Promote the cryptocurrency

1. Ideate

Ideation is the process of generating and communicating prescriptive ideas to others, usually in the context of business. It is also applicable in the creation of cryptocurrencies. Regardless of how fun the crypto creation process may be, it is important to define what you want and to develop a framework for your cryptocurrency.

Past or current data, external influences, beliefs, convictions, or values can all inspire ideas. Ideation can take the form of a pictorial, textual, or spoken representation.

Create a good proposal to pique buyers’ interest in your token during the ICO/STO. There are several tutorials available on how to build an ICO, but without value, even the best concept remains just that.

2. Get a development team

Do you frequently look for top cryptocurrency development companies to get the best crypto development team? However, the ideal one isn’t always the best one for you. Choosing a reliable blockchain outsourcing business is a difficult process.

While you can try to figure out the ideal technique to produce a cryptocurrency, entrusting your business to an expert software development firm is more effective.

To bring your vision to life, it’s important that you choose the right team by using the right software vendor selection criteria. Consider recruiting seasoned experts who are familiar with the blockchain and cryptocurrency worlds. Despite the fact that the services will not be inexpensive, you will be able to avoid the need for more work in the future.

Look for expertise, inventiveness, and approach flexibility in your potential team members, as well as team members who understand your cryptocurrency goals and aspirations.

3. Consider the legal implications

There is a rising demand for clarification about the legal ramifications of cryptocurrencies, as well as about the technology that powers these new currencies, as interest in bitcoin continues to expand.

It is highly important to consider the legal implications of creating a cryptocurrency as some countries do not accept cryptocurrencies and for countries where cryptocurrencies are accepted, certain laws back them up.

Every country’s regulatory organizations and tax administrations, as well as its central banks, are all attempting to comprehend the nature and significance of digital currencies.

Individual investors, on the other hand, can make a lot of money by investing in cryptocurrencies, but they also run the danger of incurring legal liabilities when they acquire and sell cryptocurrencies.

Much of the ambiguity surrounding the legal standing of cryptocurrencies can be attributed to the fact that it is relatively young in comparison to more established currencies and payment methods.

Even though some nations and jurisdictions have partially or completely prohibited cryptocurrency creation, the majority of countries and jurisdictions allow it. Because virtual currencies are unlawful in China, raising money through them has been prohibited since 2017, and all cryptocurrency transactions have been prohibited since then.

4. Conception & White paper development

A whitepaper is a document published by developers that describes the technology and goal of the project they’re working on. It explains how the cryptocurrency was created and what its function is to potential investors.

Statistics, graphs, and calculations are among the data types included in a crypto whitepaper. The purpose of this information is to persuade potential investors to invest in the coin.

The release of a whitepaper is a means for any crypto startup to be seen as professional and respectable. It aids investors in comprehending how the project differs from others in the crypto market.

White papers are used by investors to evaluate enterprises and form first impressions. They may turn their backs on you if this does not convey the importance of your concept.

A well-written white paper can assist you in bridging the gap between failure and a successful ICO/STO.

5. Implement an Initial Coin Offering (ICO)

The cryptocurrency industry’s equivalent of an initial public offering (IPO) is an initial coin offering (ICO) (IPO). An ICO can be used by a firm to acquire funding for the development of a new coin, app, or service.

Interested investors can purchase a new cryptocurrency token produced by the firm through an initial coin offering.

This token may have some usefulness in relation to the firm’s product or service, or it may simply represent a stake in the company or project.

6. Listing the cryptocurrency on crypto exchange platforms

To have your cryptocurrency listed on an exchange website, you first need to have a cryptocurrency that is both legitimate and well-coded.

Because of the coin’s high quality, it is easily listed on cryptocurrency exchanges. You won’t have to put up much effort because the material is already available online.

To display a cryptocurrency, each exchange will have its own set of regulations. As a result, in order for your coin to be listed on an exchange portal, it must match all the standards of the exchange portal in question.

During this step, you must contact the website as an individual on behalf of the coin you own.

Many exchange websites will not be able to communicate with users in person; instead, they will be able to connect with the approved hub or organization that will be showcasing a certain cryptocurrency.

As a result, if you wish to display your currency on a prominent exchange website, you should look for someone who has been approved.

7. Promote the cryptocurrency

For firms in the cryptocurrency industry to thrive and succeed, effective cryptocurrency marketing is essential. No matter what business you are in, having a marketing plan is very necessary to succeed. When it comes to initial coin offerings (ICOs) and cryptocurrency initiatives, developing a cohesive and effective marketing plan is even more critical.

You may begin by gathering email addresses. When you’re promoting your company, you should constantly be gathering emails from your customers and prospects. This should take place immediately from the start of an initial coin offering (ICO) or cryptocurrency initiative.

Utilize social media outlets such as LinkedIn, Facebook, YouTube, Twitter, and others to further your business’s reach. To get the word out about initial coin offerings (ICOs) and cryptocurrency initiatives, they must be promoted on social media. The social media platforms Facebook, Twitter, and Instagram are excellent places to begin. In addition to merely discussing your initiatives, it’s equally crucial to maintain these channels up to speed with the most recent developments.

The use of airdrops is another method of promoting a cryptocurrency’s popularity. Airdrops are a method through which cryptocurrency projects distribute free tokens to their respective communities in order to stimulate adoption.

Steps in creating a cryptocurrency

Detailed instructions on how to create a cryptocurrency are provided below.

#Step 1: Select a Consensus-Building Mechanism

Consensus methods are the procedures that determine if a certain transaction is valid and add it to the block of transactions in question.

#Step 2: Select a Blockchain Technology Platform

The consensus mechanism you choose will determine whether or not you make the best choice of a blockchain platform for your company. (I’ll provide the top blockchain platforms for you to pick from in the section below.)

#Step 3: Create the Nodes

You must first determine the workings and functionality of your blockchain, and then construct the nodes in accordance with those decisions. For example, would the permissions be restricted or open to the public? Is the hosting going to be on the cloud, on-premises, or a combination of both? What would be the specific hardware specifications necessary for the execution?

#Step 4: Develop the internal architecture of the blockchain.

Make sure you understand all of the details before launching the blockchain, as you will not be able to make changes to numerous settings once the blockchain is up and running.

Some of the options you’ll have to make range from something as basic as what address format your blockchain will use to something as complex as facilitating transfers between multiple cryptocurrencies without the use of a third-party middleman.

#Step 5: Integrate APIs into your application.

Some systems do not supply pre-built APIs, so double-check that yours does before proceeding. In the event that it does not, there are a number of third-party blockchain API providers to choose from, including ChromaWay, Gem, Colu, Bitcore, BlockCypher, and Tierion (to name a few).

#Step 6: Create the User Interface

It is pointless to build a world-class cryptocurrency if the user interface is not user-friendly. You must ensure that the web, FTP servers, and external databases are all up to date and that the front-end and back-end programming is done with future updates in mind before launching your website.

#Step 7: Ensure that your cryptocurrency is legal.

Make certain that your cryptocurrency is prepared for and complies with the international cryptocurrency rules that will be implemented in the near future. It is in this way that your hard work is protected and that no unexpected events may derail your attempts to create a new coin.

Cost of creating a new cryptocurrency

The cost of creating a new cryptocurrency is usually around $15k to $35k. We mentioned earlier that the cost of creating your own cryptocurrency depends on your needs and budget, while creating your crypto token or coin, you will realize that whatever you spend on them will be proportionate to the customizations and functionality features you want the token or coin to have. Overall, the cost is equal to the features you want.

Is it legal to create a cryptocurrency?

It is, without a doubt, completely legal. Always check with your local authorities to see whether cryptocurrency is allowed in your area since cryptocurrencies are prohibited in some countries. China, for example, has outlawed the use of cryptocurrency. The development and promotion of a new cryptocurrency might cause a company to run afoul of current securities restrictions, even in jurisdictions where cryptocurrencies are legal.