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There are close to 10,000 cryptocurrencies in existence, and more are coming up every day. But did you know that you could learn how to create your own cryptocurrency online? In this guide, we will show you step-by-step how you can create a cryptocurrency.

First of all, you need to decide on whether to create a coin or a token. While a coin has its own blockchain, a token runs on a platform upon which it is tailored to run.

How to Create Your Own Cryptocurrency by Making a Blockchain

A coin runs on its own proprietary and independent blockchain. So, to make a coin, you will have to build your own blockchain from scratch.

Creating an entirely new blockchain requires experience and understanding in coding, blockchain technology, and encryption. This option is not suitable for new developers, as many errors can occur, and it will require a lot of time, even for experienced programmers.

However, creating your own blockchain enables you to have full control over the underlying code.

A simpler option to create your own cryptocurrency is to fork from the code of an existing coin. You just copy the code of Bitcoin or another chain, add a new variable, modify some values, and you will have your own blockchain. Many top coins have come into existence by forking from Bitcoin, such as Bitcoin Cash, Litecoin, Zcash, etc.

So you will have to know exactly where to modify the code’s parameters in order for the chain to function properly.

Create a Token by Using Specialized Platforms

You’ve been wondering how to create your own cryptocurrency, starting with creating a token? Another easier way to create your own cryptocurrency is to use the services of platforms that give you the tools to launch your own token. This option is more feasible for those who are looking to quickly launch a crypto, as it requires less development time, spending, and maintenance.

When you build a token on top of an existing blockchain, such as Ethereum, your token uses the secure network, decentralized architecture, and implemented consensus mechanisms of the blockchain.

Tokens function similarly to smart contracts and can be programmed to represent various items or have different digital services. Tokens are usually launched in ICOs of Security token offering (STO) to help projects and startups get the funds they require for their operations.

How to Create Your Own Cryptocurrency

In the following paragraphs, we will show you how to create a proper cryptocurrency. Read and follow each step very carefully in order to succeed.

Build Your Own Blockchain or Fork

1. Select Your Source Code.

If you want to know how to create your own cryptocurrency, a good start is that you can choose from various Open Source Blockchains. You can fork Bitcoin’s or Litecoin’s blockchain by downloading them from Github.

It is more recommended you use open-source technology to create your own blockchain, as developing a block-chain from scratch takes a great deal of time and money.

2. Download and Install your Blockchain on a Live Server.

3. Access your server using SSH via putty as administrator (root access) to install the blockchain directly on a live server.

4. Run the following commands one by one (we will be using Multichain in our example).

cd /tmp

wget https://www.multichain.com/download/multichain-1.0.4.tar.gz

tar -xvzf multichain-1.0.4.tar.gz

cd multichain-1.0.4

mv multichaind multichain-cli multichain-util /usr/local/bin

5. Now, we can go on to create a blockchain by running the following commands:

multichain-util create your_chain’s_name

6. Modify the Chain.

Before you learn how to create your own cryptocurrency, you will have to make some adjustments according to what you need in your chain to create your own cryptocurrency, as blockchain cannot be changed after they get started.

Below we will be featuring some of the most important parameters that should be modified.

Access your server using SSH via putty as administrator and run the command:

nano ~/.multichain/ your_chain’s_name/params.dat

Here are some of the parameters that you should modify:

  • chain-description;
  • chain-is-testnet;
  • first-block-reward (the number of coins produced when mining a block);
  • anyone-can-connect (set it to true);
  • anyone-can-send (set it to true);
  • anyone-can-receive (set it to true).

After making the alterations, save the params.dat file.

7. Start the blockchain.

Access your server as root (administrator) and run the following commands to start your blockchain:

multichaind your_chain’s_name -daemon

With this command, you will produce the First Block, which is known as The Genesis Block.

8. Test Your Cryptocurrency.

Access server using SSH via putty as administrator and run the following command:

multichain-cli your_chain’s_name

The command allows you to get into the interactive mode.

Run getinfo to check the chain’s details.

This is the last step in creating your own blockchain from the guide “How to create your own cryptocurrency”.

Use a Token Platform

1. Select a Consensus Mechanism

Consensus mechanisms, or mining protocols, represent the code that handles how new tokens are issued and verifies the validity of transactions before adding them to the block. The most popular consensus protocols are PoW, PoS, but of course, there are many others you can look into.

2. Select a Platform That Supports Token Creation

Based on what consensus mechanism you’ve selected, it’s time to choose your platform.

By far the most popular is the Ethereum blockchain, with the ERC-20 standard having been used for most of the tokens issued so far. We will use Ethereum as an example of a platform to create a token. You will need the Ethereum wallet app. You will have to download and install it, then locate the “Deploy new contract” button on the top left-hand corner. Click on it, and the Solidity Contract Source Code field will pop up. Enter the code below.

how to create your own cryptocurrency
Source: mlsdev.com

contract MyToken {

/* This creates an array with all balances */

mapping (address => uint256) public balanceOf;

}

After that, a window will open with the above code in a small window as shown below. Enter the following code under the one in the little box.

how to create your own cryptocurrency
Source: mlsdev.com

function MyToken() {

balanceOf[msg.sender] = 21000000;

}

As shown in the code above, the cryptocurrency supply is capped at 21 million, but you can change it to whatever value you want. To the right of the solidity box, click on the button under “select contract to deploy”. In the dropdown, select “Mytoken”. This is the way to learn how to create your own cryptocurrency.

If you wish to be able to move your cryptocurrencies and send to other people, you can add the following codes in the solidity box.

/* Send coins */

function transfer(address _to, uint256 _value) {

/* Add and subtract new balances */

balanceOf[msg.sender] -= _value;

balanceOf[_to] += _value;

}

function transfer(address _to, uint256 _value) {

/* Check if sender has balance and for overflows */

require(balanceOf[msg.sender] >= _value && balanceOf[_to] + _value >= balanceOf[_to]);

/* Add and subtract new balances */

balanceOf[msg.sender] -= _value;

balanceOf[_to] += _value;

}

/* Initializes contract with initial supply tokens to the creator of the contract */

function MyToken(uint256 initialSupply, string tokenName, string tokenSymbol, uint8 decimalUnits) {

balanceOf[msg.sender] = initialSupply; // Give the creator all initial tokens

name = tokenName; // Set the name for display purposes

symbol = tokenSymbol; // Set the symbol for display purposes

decimals = decimalUnits; // Amount of decimals for display purposes

}

Then we need to add the little piece of code below to allow Ethereum wallets interact with our smart contract.

event Transfer(address indexed from, address indexed to, uint256 value);

As well, within the “Transfer” function, add this:

/* Notify anyone listening that this transfer took place *

Transfer(msg.sender, _to, _value);As well, within the “Transfer” function, add this:

/* Notify anyone listening that this transfer took place */

Transfer(msg.sender, _to, _value);

The next thing is to deploy the cryptocurrency. All you have to do is go to the “Contracts” tab and click on “Deploy new contract.” The window below will open, and you need to copy the code here and paste it in the solidity box.

how to create your own cryptocurrency
Source: mlsdev.com

You can change parameters such as  _supply, _name, _symbol and_decimals, to your choosing. After this, your cryptocurrency is all set. Although you can send them to friends and any other person you choose, it will need professionals to make it one that can be listed on exchanges and traded.

Before launching your crypto out into platforms like Bitcoin Pro, first, make sure that it is compliant with the laws and cryptocurrency regulations of the country or region you want to make it available.

Final Thoughts

We hope this guide has been of much help on how to create your own cryptocurrency. You should know that it will require some effort on your part, be it through a token platform or a blockchain fork. But, either way, you should have fun with your first crypto adventure to create your own cryptocurrency online, and you can always perfect it or launch a more advanced one later on.

Featured image: Pinwise

Note: This post was originally published on 23 November 2019 and has been totally updated for the completeness and veracity of the content on 20 May 2021.

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