How cryptocurrency is created

Cryptocurrencies offer many opportunities to make money. One of the most reliable ones is mining, but it requires an initial investment. A bit more risky ways are active trading on an exchange or trading in existing digital assets. However, even without initial capital, you can start earning – AirDrop cryptocurrency allows you to receive tokens for some actions or just for registration.

The popularization of cryptocurrencies and other blockchain-based technologies has led to more new users who want to earn in this field.

Ways of earning high income in a short period of time without large investments are of particular interest. Since pulling off such a scheme through trading or other tools requires knowledge and start-up capital, much of which can be lost during the first attempts, newcomers are thinking about creating their own cryptocurrency. This option seems like a gold mine, especially after reading the news and the explosive growth of unsecured shiatcoins.

But how easy is it to create a cryptocurrency and get income from its sale?

Why create cryptocurrencies
In order to create a cryptocurrency, you need a specific goal. Without it, the process is useless and virtually impossible, because the type of asset and the way it is issued will be chosen based on the purpose.

At the stage of choosing the purpose, the enthusiasts who want to make money just by creating the currency and selling it to theoretical users are eliminated. Such a motive is unviable, as no one will need useless cryptocurrency. It can be created, but it will lead to nothing.

There are cases when a cryptocurrency is created solely to generate revenue for the developers:

fraudulent ICOs;
Shitcoins, designed for hype.

The first option is illegal, because it represents the machinations of the financial sector, and the second has a minimal chance of success and requires large investments.

Cryptocurrency must have a clear purpose and consequent utility. In most cases, the asset is issued to make the project work, that is, it performs a function. For example, it is used to pay for commissions, purchases within the platform, staking, or to participate in management.

The specifics of the project and the purpose of the created cryptocurrency affect the choice of its type: token or coin.

Are creating a token and a coin the same thing?
A token and a coin differ in the need to develop a native blockchain. You can use an existing token to issue a token. For example, Ethereum or Binance Smart Chain. This simplifies the creation process, but this approach will not work in all cases.

For projects with unique technologies, creating a new blockchain and issuing a coin accordingly is used, as it expands functionality and eliminates the need to depend on limitations that might be present when working with someone else’s network.

From a technical point of view, coins are much more complex, take longer and require more investment, but the projects can be more unique. Tokens are cheaper and easier to issue, but do not lend themselves to the same customization and have less potential to innovate.

Ways to create cryptocurrency

Token
There are two main options: simple and more complicated. In the first case, you can use a paid service, through which the parameters of the future token are selected. The generation of the smart contract code takes place without user intervention. In the second case, frameworks are used, through which the smart contract code is manually written. To simplify the process, you can take an existing smart contract as a basis and make adjustments to it.

Coin
There are two options for issuing a coin: a fork or a new blockchain. Both methods of creating a network are quite complex, both technically and when it comes to maintaining functionality. Without programming skills, blockchain deployment is unfeasible, so if you don’t have them, you need to bring in programmers on the team.

Functions
Since the cryptocurrency must be useful, the functions it will perform must be chosen before it is created. Without a clear understanding of future use, the mechanism for a smart contract may not be properly prescribed.

Tokenomics
Tokenomics is the economic concept of a cryptocurrency. It takes into account the total number of coins, the method of distribution, the price at the time of release, and the mechanisms that should influence demand. Without properly labeled tokenomics, a project will not attract investors because they will not see value in it.

Specifics of Legislation
The legal framework regarding cryptocurrencies depends on the country and not all states recognize the legality of coins and tokens. This is important to consider before starting development, as a project outside of the legal legal framework may face problems from state regulators in the future.