How to create a digital currency-WWNEED.COM

 How to create a digital currency-WWNEED.COM

In theory, anyone can create a digital currency, but before that he must be armed with the necessary knowledge and resources, in addition to the correct and effective way of how to create a digital currency properly.

You should know that the matter does not end when creating the currency, but rather the difficulty continues to the following procedures in terms of promotion, listing on the stock exchanges, maintenance and continuous updates. If you are interested in knowing how to create a cryptocurrency, then read this article.

What is the difference between coin and token?

Both fall under the umbrella term “cryptocurrency,” but while a currency like Bitcoin or Litecoin exists on its own blockchain, a token like the Basic Attention Token runs on top of the infrastructure of well-established blockchain technology like Ethereum.

Tokens have their own uses and value. Digital currencies are usually used to store, build, or transfer wealth, while tokens are a type of contract that performs a specific task for a blockchain application. The Basic Attention Token, for example, rewards content creators with the Brave browser. Tokens can also act as a contract or digital copy of something, such as event tickets or loyalty points. Non-fungible tokens (NFTs) are used to represent a unique piece of digital property.

How to create a digital currency

How to create a cryptocurrency splits into three ways, here’s how each of them works:

Create a new Blockchain

Creating a new blockchain from scratch requires great coding skills and is the hardest way to create a digital currency. There are many online courses that may help you through this process, but they do assume a certain level of prior knowledge.

Create a fork of an existing blockchain

Creating a fork of an existing blockchain can be much faster and less complicated than creating one from scratch. This process involves taking the open source code on GitHub, modifying it, and then releasing a new coin with a different name. The developers of Litecoin, for example, created it by forking from Bitcoin, and then split it into several coins like Garlicoin and Litecoin Cash.

Use an existing platform

The third and easiest option for those with limited knowledge of the field. You will have to create a digital currency or token on an existing platform like Ethereum. Many new projects are creating tokens on the Ethereum network using the ERC-20 standard for example.

How to create a digital currency in seven steps

It is important to be aware of the following steps to know how to create a digital currency properly.

1- Select the compatibility mechanism

A consensus mechanism is the protocol that determines whether or not a network allows a particular transaction. All nodes must confirm the transaction in order for it to be executed, this is also known as “achieving consensus”.

2- Select Blockchain

A coin or token needs a place to live, so defining the blockchain environment is a crucial step. This choice depends on your level of technical skill, comfort level, and your project goals.

3- Creating the contract

Nodes are the backbone of any distributed ledger technology (DLT) including blockchains. As the digital currency creator, you must define how your nodes will work, what will the hardware details look like? How will hosting work?

4- Build Blockchain architecture

Before launching the coin, you must be 100% sure of all the functions of the blockchain and its node design, you will not be able to change or modify many things once the mainnet is launched. You can use a testnet to check from simple things like formatting a digital currency address to more complex things like incorporating an inter-blockchain communication (IBC) protocol to allow a blockchain to communicate with other blockchains.

5- Integration of APIs

Checking if the newly created digital currency has APIs may help you to make it visible, or you can use third-party blockchain API providers who can help with this step.

6- Interface design

There is no point in creating a new digital currency if people find it difficult to use it. Web and FTP servers must be up to date and programming on both the front end and the back end must be done with future developer updates in mind.

7- Legalization of digital currency

This step is very important as it led to the failure of many who launched their cryptocurrencies in 2017 and 2018. Digital currencies were strictly prohibited at the time, and recklessness with this step could lead to fines or criminal charges depending on the circumstances. Before launching a new currency, you should research the laws and regulations related to stock offerings and related topics. You can also hire an experienced lawyer to guide you through this step.


The How to Create a Digital Currency article summarizes the most important technical aspects of this process, which you will have to know before embarking on the creation process. But remember this is only the beginning, as a cryptocurrency creator you will have to figure out how your coin can provide value to others, how to convince them to buy, and how to maintain the network.

Creating a cryptocurrency can take a lot of time and money, as well as a risky field. There are over 5,000 different types of cryptocurrency listed on public exchanges according to data from Coinmarketcap, and thousands more that have failed over the years.

Investing in cryptocurrencies may be an ideal path for those who have enough time and money, in addition to the most important element which is interest. A great way to do this is to open an investment account on the SoFi Invest brokerage platform, which makes it easy to trade cryptocurrencies, stocks, and exchange-traded funds.

Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as investment advice or a recommendation. No warranty is made, express or implied, as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.