Home Cryptocurrency How to Create and Launch Your Own Cryptocurrency

How to Create and Launch Your Own Cryptocurrency

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Several years ago, creating a cryptocurrency required technical knowledge. Due to rising demand, the entire process has been simplified over time.

Of course, creating complex tokens will still require in-depth knowledge of smart contract languages. However, using the right tools may assist and lower the costs of developing your very own cryptocurrency.

This article will guide you through the fundamentals of token creation, from the technology to launch procedures.

Why should you create a cryptocurrency?

There may be different motives behind creating a new cryptocurrency. Some may do so for the financial opportunities involved. If the new token’s value increases substantially, it may present substantial returns on the initial investment.

Others may do so to fight the centralization of traditional banks. A decentralized cryptocurrency knows no boundaries, which may threaten fiat currencies in the future.

Other individuals or entities wish to use blockchain technology due to the high demand for new cryptocurrencies worldwide. It may reduce companies’ costs using traditional methods and increase brand awareness.

What to consider when creating a cryptocurrency?

Before kickstarting your own cryptocurrency, the following should be planned in advance.

1. Set your goals for the token

Before creating a cryptocurrency, decide what you aim to achieve. Are you designing a meme coin, trying to revolutionize Decentralized Finance (DeFi), or tackling real-world challenges?

Identifying your focus helps define your project’s purpose and audience- whether casual users, businesses, or tech-savvy individuals. 

By clarifying your goals early, you’ll create a cryptocurrency that aligns with market needs, fulfills its purpose, and builds a path for long-term growth.

2. What blockchain will you use?

The blockchain you select impacts how efficiently your cryptocurrency operates, affecting transaction costs, processing times, and the ability to handle growth.

Ethereum or Ethereum Virtual Machine (EVM) compatible chains are often the first choice because of their large ecosystem and developer-friendly tools.

EVM provides access to a massive user base, developer resources, and wallets like MetaMask, making it a practical choice for most beginners. Solidity is the most popular programming language for EVM smart contracts.

Solana, which is not EVM compatible, appeals for its low fees and is home to the most successful meme coins. Rust programming language is the top choice for smart contracts on Solana.

Perhaps a chain with rising total value locked (TVL) figures with fewer tokens, which means less competition from other cryptos.

3. Choose the supply and models

Next, you’ll need to choose a token supply, i.e., the total number of available tokens your project will have. The supply you choose impacts both the market behavior and the value of your token. 

A high supply, such as 10 billion tokens, could lead to lower initial prices, appeal to new investors, and provide room for rewards, partnerships, and exchange listings. Low supply, under 20 million tokens, for example, creates scarcity, boosting demand and reducing inflation risks. 

An inflationary model means there is an unlimited supply of the tokens. The tokens could be minted for rewards or other incentives, for example. Tokens that suffer from high inflation could witness gradual devaluation over time. Opting for an inflationary model means you must have a clear plan and ways to combat inflation if needed.

A deflationary model means supply is reduced over time. It could be done manually by burning tokens monthly or quarterly. The burning mechanism can be automated as well.

Choose a supply model that aligns with your goals—whether encouraging mass adoption or establishing long-term value through limited availability.

4. Design the cryptocurrency’s website

A good user experience (UX) attracts and retains users on your cryptocurrency website. 

Keep the site simple and easy to navigate for new and experienced users. Focus on a clean layout, responsive design, and fast load times. 

Including guides, FAQs, and support options can enhance user experience and build trust in your cryptocurrency project.

There are many platforms and hosting solutions to choose from. If you have never created a website before, many pre-designed templates and AI tools can assist you in creating the website.

4. Audit the smart contract of the cryptocurrency

Auditing your smart contract must be carried out by a trusted third party to ensure the highest level of security and impartiality.

Independent auditors bring expertise and an outside perspective, which helps identify vulnerabilities that the original developers may overlook. This is essential as it shows you have taken adequate measures to ensure the coding of the smart contract is safe.

The audit process includes reviewing the code for issues such as reentrancy attacks and overflow errors. Auditors manually review the code, use automated tools, and run tests that simulate real-world scenarios to check for potential flaws.

These audits verify that the smart contract follows industry best practices, providing users with additional assurance that their funds are safe.

Blockchain security audit firms’ selection

There are many blockchain security firms in today’s markets. Below is a short list of security services to consider.

Quantstamp: Founded in 2014, Quantstamp’s headquarters are in California, U.S. Quantstamp audits smart contracts, Web3 infrastructure, DeFi deposits protection, and more. The company has audited Cardano, Avalanche, Binance smart chain, and many others.

Hacken: Founded in 2017. Hacken’s headquarters are in Estonia. Among its services, Hacken offers compliance with the Digital Operational Resilience Act (DORA), cross-chain bridge audits, proof of reserves, and more. Near Protocol (NEAR) and 1INCH used Hacken’s auditing services.

OpenZeppelin: Founded in 2015. The headquarters are in the Cayman Islands. Besides audits, the company also offers Defend cloud services, where developers can safely upgrade smart contracts, detect threats, automate smart contracts operations, and more. Crypto lending platforms Aave and Compound use their services.

Before launching your cryptocurrency, ensure you meet legal requirements, such as forming an LLC or corporation for tax and liability purposes. 

Consult legal professionals to understand regulations specific to your jurisdiction, including securities laws and anti-money laundering (AML) requirements. 

Creating a legitimate legal structure provides protection and helps ensure compliance, which can build trust with potential investors.

7. Liquidity for the cryptocurrency

Launching a cryptocurrency requires setting up liquidity, which refers to the pool of funds that allows people to buy and sell tokens easily. Liquidity ensures smooth transactions in decentralized exchanges (DEXs), while the process works differently in centralized exchanges (CEXs).

Some projects start with $50,000 in liquidity, while others start with over $700,000. High liquidity ensures that traders can easily buy and sell (within the liquidity size) on exchanges.

You can use your own funds for liquidity. However, many projects opt for a private sale, where early supporters purchase tokens before the official launch. This helps raise funds for liquidity, marketing, and development and creates buzz around the project.

Below are several platforms you may use for raising liquidity and launch your cryptocurrency:

Coinlist: A San Francisco-based platform for compliant token sales, which has launched over 200 projects since 2017, including Filecoin and Solana.

Polkastarter: A Lisbon-based decentralized fundraising platform for cross-chain token pools, hosting over 200 IDOs since 2020.

Trustpad: An Estonia-based multi-chain token launch platform, providing secure capital raising since 2021 with numerous project launches.

Locking liquidity to generate trust

In a similar way, managing liquidity is essential for ensuring the stability and security of your investments. Locking liquidity means keeping a portion of the funds you’ve invested in a platform, like Uniswap or PancakeSwap, locked away for some time. 

This ensures that the funds can’t be removed or accessed, which reassures investors that the project is secure. Some projects burn the keys (making them permanently inaccessible) to show even more commitment to security and transparency.

By locking liquidity, you build trust with users, which is crucial for gaining traction in the market and attracting investors.

Many services provide liquidity locks. Unicrypt has been a popular choice in 2024.

8. Marketing strategy

Successful cryptocurrency projects have been built through careful planning and active community involvement. One key factor in this success is forging strategic partnerships with other businesses and communities. 

Marketing strategies are also important. Strategies like public relations, influencer partnerships, and engaging campaigns create excitement. Social media platforms such as X (formerly Twitter), Telegram, and Reddit are key for promoting new projects, often supplemented by ads on platforms like Coinzilla to reach a larger audience.

Maintaining the support of a crypto community requires ongoing engagement. One way to do this is through “airdrops,” which give free crypto giveaways to users who meet certain criteria.

Platforms for creating a cryptocurrency

Rather than spending time writing the smart contracts for your cryptocurrency, token generators allow users to create cryptocurrency tokens without requiring extensive coding knowledge. 

If you are considering creating a cryptocurrency, here are some token-generation platforms you might explore:

  • Pump.fun: A Solana-based service that helps you create and launch meme coins quickly and cheaply. Once your token reaches a market cap of $69,000, it automatically boosts liquidity.
  • TokenTool (Bitbond): An easy-to-use platform for creating and managing tokens. It also allows you to automate payments and track your tokens.
  • Smithii Tools: A no-code platform for Solana projects, making token creation simple. It includes tools like a launchpad for starting your token and other helpful management features.
  • BakeMyToken: A platform where you can create basic ERC20 tokens. It works across several blockchains, including Ethereum, Polygon, and Binance Smart Chain, to help you launch your token.

How much money do you need to create a cryptocurrency?

The cost of creating a cryptocurrency varies widely, from just a few dollars to thousands, depending on whether a token generator or developers are used to design the cryptocurrency.

Auditing the smart contracts can be costly, depending on the security firm that will carry out the audits. Some firms are more affordable than others. It is worth noting that some crypto exchanges will conduct security audits for the tokens they plan to add. For example, Binance uses PeckShield and Certik to audit cryptocurrencies prior to their listing.

Creating a cryptocurrency also involves costs beyond development, including marketing and legal fees for regulatory compliance, community management, and public relations efforts. This includes influencer partnerships, paid advertising, and promotional campaigns for your new cryptocurrency.

Conclusion

Creating your own cryptocurrency is easier than it was in the past. Nevertheless, choosing your market, the chain, supply, market strategies, and other factors must be predetermined.

Many crypto projects have failed over the years, so focus on building something sustainable for lasting success.


FAQs

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Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Sal Miah
Crypto & Fintech Writer

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