How to Make Your Own Cryptocurrency: A Practical Approach

In today’s world, the idea of decentralization in finance opens up exciting opportunities for fintech. However, when you take a closer look, you’ll find that there are still many challenges and limitations on the road to making finance more democratic.

Cryptocurrencies are changing how we think about money, but not all of them solve real problems. Right now, most existing digital currencies have limitations that don’t meet specific business or user needs. That’s why smart entrepreneurs and companies are starting to create their own custom cryptocurrencies.

This article outlines the steps you need to take to create your own cryptocurrency. In addition to crypto coins versus new tokens, it discusses designing a sustainable economic model (tokenomics), and tokenizing real-world assets. Learn everything you need to know to create your own crypto coin or to develop a token based on an existing blockchain platform.

Bespoke Solutions: Unique Crypto Solutions for Fintech Problems

Custom cryptocurrencies are specialized financial technology solutions. These provide a number of advantages that can enhance companies’ performance and address unique problems within the industry. Here’s how we explain it:

1. Personalized Features:

Well, imagine if you could design your own digital money — precisely on the terms that you require. That is what custom crypto currencies permit. You can improve the security by adding really strong security features or increase the speed for processing high cryptocurrency transactions.

2. Standing Out from the Crowd:

With thousands of different cryptocurrencies flooding the market, a customized one can help draw attention to your brand. It is like a unique signature that embodies your company values.

3. Common Financial Issues:

Certain custom cryptocurrencies could solve some of finance’s most vexing problems:

• They can lower the cost of transmitting cash by eliminating the intermediaries.
• You can process transactions in a far quicker way, which is terrific for global repayments.
• They introduce more avenues for a company to collect funds, such as ICOs or STOs.

4. New Ways to Make Money:

You can generate new streams of income with your cryptocurrency. For instance, you might allow people to lend out their digital coins or create new financial products that traditional banks don’t offer.

5. Building More Transparency:

Custom crypto creates a trail that makes the entire process more transparent. This is particularly useful in domains like supply chain where you want to easily track products.

6. Easier Global Transactions:

The system of custom cryptocurrencies makes the process of sending money across borders as seamless as possible. Therefore, for businesses operating internationally, it’s quicker and often cheaper than conventional methods.

However, in short, custom cryptocurrencies are a powerful tool that can provide businesses with an advantage, address targeted problems, and create new opportunities in the world of finance.

Coins and Tokens: What You Need to Know

If you’re thinking of launching a custom cryptocurrency for your business, you need to know the difference between coins and tokens. This will help you create a cryptocurrency that matches your goals and budget.

What Are Coins?

Coins are cryptocurrencies that have their own blockchain platform. They’re for transactions or to store value. Here are some examples:

• Bitcoin (BTC): A widely used digital currency for transactions and store of value.
• Ethereum (ETH): Supports smart contracts and dApps within its blockchain platform.
• Solana (SOL): Optimised for high speed transactions in its own blockchain platform.

Each coin operates within entirely new blockchain with its own features based on its blockchain platform.

What Are Tokens?

Tokens are digital assets created on top of an existing blockchain infrastructure like Ethereum or Binance Smart Chain. You can use your own token for:

• Utility Tokens: Grant access to services or features within an existing blockchain platform.
• Governance Tokens: Allow holders to vote on a project.
• Asset-Backed Tokens: Represent ownership of physical or digital assets.

Since a cryptocurrency token is built on top of their parent blockchain, they’re faster and easier to create than coins.

Coins vs Tokens

Key Differences Between Coins and Tokens

Feature	Coins	Tokens
Blockchain	Built on independent blockchains	Created on existing blockchains
Purpose	Serve as digital money or store value	Enable specific applications, such as governance or utility
Use Cases	Financial transactions and value storage	Access to services, platform-specific tasks

Coins are generally better suited for projects needing their blockchain architecture , while tokens are ideal for leveraging the structure of an existing blockchain network.

Coins vs Tokens

Creating a Coin

To create a coin you’ll need to create your own blockchain which is a complex and resource intensive process. Here’s what’s involved:

• Technical Knowledge: You have to have knowledge of blockchain architecture or access to developers.
• Time Commitment: Developing, testing and deploying a blockchain can take months.
• Investment: Creating a cryptocurrency coin requires upfront costs for development and ongoing costs for maintenance and security.

Coins offer customisation and control but require a lot of effort and long term management.

Tokens

Tokens are simpler and cheaper to create. By using an existing blockchain you can skip building your own infrastructure. Here’s what’s involved:

• Development Time: Your own token can be created in a few weeks.
• Cost Efficiency: Token creation is cheaper but has fees for smart contracts and platform usage.
• Security: Tokens benefit from the security of the parent blockchain so are protected against vulnerabilities.

Tokens are ideal for businesses that want to launch fast and focus on platform specific needs.

How to Choose Between a Coin and a Token

It depends on your business needs, technical expertise and resources:

• Go for a Coin If: You need a blockchain for your project and have the resources to develop and manage it.
• Go for a Token If: You want a quicker, cheaper solution that fits within an existing blockchain.

Take your time to think about your goals and make the right choice for your business.

Read more about blockchain assets here.

What is Tokenomics?

Tokenomics is the study of the entire economic system of your coin. It is a science of how you can have an economy of your coin or your token, that is sustainable and leads to adoption and value preservation. When you create a cryptocurrency, you need to define its tokenomics to create a functional economy.

Tokenomics Components

1. Total supply and circulating supply:

How many will be produced, and how many will enter circulation? Set total & circulating supply for your token — this may be the most crucial tokenomics feature you need to define. A limited supply helps create value and makes your cryptocurrency more appealing to investors.

Capping the total supply of a cryptocurrency is a way to control inflation and increase its long term value. Here are some examples of capped cryptocurrencies:

• Bitcoin (BTC): With a total supply of 21 million coins, scarcity is the value driver.
• Sui (SUI): 10 billion tokens total supply, managed to support the ecosystem.

Limiting the circulating supply at launch gives you more flexibility in shaping your cryptocurrency’s value. For example you can start with a small circulating supply and a larger total supply to issue over time. This helps with market dynamics and scalability as your new cryptocurrency project grows.

To explore up-to-date supply data on various cryptocurrencies, please go to CoinMarketCap.

2. Distribution:

How will you distribute tokens to your team, advisors, investors, and early adopters? You’ll need to allocate a significant portion of tokens to these groups to ensure they have enough to function within your ecosystem and enough incentive to help you achieve your business goals. A solid distribution plan can help you raise money quickly and build a community of loyal supporters. You can use a combination of methods to distribute your tokens, including:

• Pre-sales and public sales
• Airdrops
• Token giveaways

3. Community Incentives: Engagement and Growth

What will motivate your community to use your cryptocurrency and contribute to it’s success? Well designed incentives are key to building and retaining an active user base. Try these:

• Staking Rewards: Allow users to stake tokens for rewards and long term commitment.
• Referral Programs: Offer bonuses for referring new users and grow your community organically.
• Task Completion Rewards: Create missions or activities within your ecosystem that reward users with tokens.
• Value Holding Incentives: Offer perks or benefits for users to hold your coin or token.

A well-incentivized community becomes an invested partner in your success, helping to drive growth and sustainability for your cryptocurrency project.

Tokenize Real-World Assets

Your cryptocurrency can also represent real-world assets, such as real estate or commodities, to offer liquidity to illiquid assets. Tokenization of assets, also known as security tokenization, gives existing assets new life by allowing owners to access capital locked in their properties.

For example, a developer could create a token on the Bitcoin blockchain that represents shares in a rental property. Investors could buy fractions of the property, making real estate investment more accessible and diversified. The token gives owners liquidity to cash out or buy a new property.

Tokenized assets also provide owners with increased liquidity, making it easier to sell, cash out, or even reinvest in new opportunities. Additionally, smart contracts embedded in the tokens can automate functions like dividend payouts, voting rights, or revenue sharing, adding another layer of efficiency to the process.

Tokenization offers numerous benefits to your community, such as:

• Easier access to investment opportunities.
• Enhanced liquidity for assets that were once hard to sell.
• Democratization of wealth-building tools, enabling a broader range of people to participate.

To explore the full potential of real-world asset tokenization and how Cyber Bee can help bring tokenization into your project, visit our RWA Tokenization Service Page.

Legal Considerations

When creating a new token you need to consider legal requirements in your tokenomics. Many jurisdictions have securities laws that apply to your cryptocurrency and understanding these is key to avoiding legal trouble.

You don’t need to be a lawyer but having a team of lawyers with cryptocurrency and blockchain expertise is super useful. They can help you navigate the legal frameworks, ensure compliance and set your project up for long term success.

Tokenomics is more than just numbers. It’s an ecosystem. This means setting token supply limits, fair distribution mechanisms, user incentives and all legal aspects covered. A good economic model is the basis for a successful and compliant cryptocurrency.

Making Your Own Cryptocurrency: Going Solo or Team Up

If you’re wondering how to create a cryptocurrency, there are two main options. If you have a strong technical background and understand blockchain technology, you could create a cryptocurrency yourself. However, this route requires extensive coding experience and a solid foundation in computer science. If you don’t have the time, resources, or expertise, partnering with specialists (like Cyber Bee) is the best choice. We’ll handle everything for you, ensuring you reach your business goals with ease.

A Step by Step Guide to Building your Own Cryptocurrency

It is not only creating a cryptocurrency; it is about how and where you are solving an issue and how you are doing it in a business-oriented way. If you are looking to create a completely new coin or a new token on top of an existing blockchain — Here is the practical guide about how to create on own cryptocurrency.

1. Define Your Idea and Concept

• Purpose: Why are you creating this cryptocurrency? What’s the unique value and how will it differ? What problems will it solve and for who?
• Technical Specs: Document the main details of your project, like how it will work and what consensus mechanism (PoW or PoS) if you’re creating a coin. If you’re creating a token, this will be more about the smart contract details.

2. Planning and Design

• Roadmap: Break your project into stages. From concept to development, testing and finally launch, set milestones and timelines so you can stay on track.
• Coin or Token: Will you create a new Layer 1 blockchain (a new coin) or build a token on an existing blockchain like Ethereum, Binance Smart Chain or Solana? A new blockchain gives you more flexibility but takes more time and resources. Tokens are quicker to launch since they ride on existing networks.
• Technical Architecture:
• For Coins: If you’re creating a new blockchain, you’ll need to choose a consensus mechanism (PoW, PoS, etc.) and define how transactions will be processed.
• Transaction Mechanisms for Coins: These are a key part of your blockchain’s design. They define:
• How transactions are structured.
• How fees are calculated (fixed, dynamic like Ethereum’s gas fees, etc.).
• How transactions are included in blocks and validated by nodes.
• These need to be built from scratch as part of the protocol.
• For Tokens: With tokens, the blockchain infrastructure takes care of the transaction mechanisms. The network (like Ethereum or Binance Smart Chain) will handle transactions for you so you don’t need to build this from scratch.

3. Development

• Blockchain Protocol (for Coins): If you’re creating a coin with its own blockchain, you’ll set up the protocol that processes transactions and validates blocks, including how new blocks are created.
• Smart Contracts (for Tokens): For tokens, you’ll write smart contracts (e.g. using Solidity for Ethereum) to define how your token will behave. This includes functions like minting, burning and distributing tokens.
• Smart Contracts for Coins: Smart contracts are optional for coins unless you plan to support dApps or specific features on the blockchain. For example, Ethereum relies heavily on smart contracts, while Bitcoin uses them minimally.
• Smart Contracts for Tokens: Smart contracts are required for tokens. They define how tokens are created (minted), burned and distributed. They also manage the logic for interacting with other systems.
• Write and Test the Code: Follow best practices in coding so everything works securely and smoothly. You can use testing tools to catch bugs and make sure your code works as expected before you deploy.
• Security Features: Make sure your network is secure by adding encryption and attack prevention. Keeping users’ funds safe is key to building trust.
• User Interfaces: Think about how users will interact with your cryptocurrency. Whether you need a wallet or a blockchain explorer, think about how you can make it easy and user friendly for people to use.

4. Testing

• Testnet: Before going live, launch a test version of your blockchain or token to find any potential issues. It’s a risk free way to make sure everything works.
• Third-Party Audits for Smart Contracts: Get independent experts to review your smart contracts to make sure they’re secure and free of vulnerabilities.
• Fix Bugs and Vulnerabilities: If anything breaks during testing, fix it. So everything works as expected when you go live.
• Test Scalability: Test how your system handles high volume of transactions. You want to make sure it can grow with the user base.

5. Launch and Deployment

• Mainnet: Once you’re happy with your testnet, switch to mainnet and launch your cryptocurrency. Make sure everything works before you go live.

6. Ongoing Support and Development

• Updates: You may need to do network updates or improvements, whether it’s a hard fork or soft fork, based on feedback and evolving needs.
• Fix Bugs as They Appear: No system is perfect—be ready to fix issues as they come up to keep things running smoothly.
• Grow the Ecosystem: As your cryptocurrency grows think about adding more features based on what users want and what the market demands.

By following these steps you can create either a new coin with its own blockchain or a token that operates on an existing network. Along the way involving business analysts, product owners and quality assurance experts will help you refine your approach and make sure your project is set up for success in the world of digital finance.

Cyber Bee: Your Partner in Cryptocurrency Creation

When guided correctly, the launch of a cryptocurrency can become a streamlined, efficient process. At Cyber Bee, we focus on your business needs, helping you bring your vision to life. From technical architecture to seamless deployment, we ensure every essential technical aspect is expertly managed.

1. Idea to Reality

Got an idea or see a market gap but not sure how to make it happen? Cyber Bee can help.

• Collaborative Ideation: We’ll work with you to develop your concept, refine it and align it with market and business goals.
• Holistic Approach: We’ll design the architecture and business model to make your cryptocurrency stand out in a crowded market.

2. Specs

• Custom Solutions: We work with you to define the features and functionality of your cryptocurrency. Whether it’s a token on an existing blockchain or a coin with its own blockchain, we handle the technicalities.
• Clear Process: From consensus mechanisms to transaction logic we break down the complexities and get you ready for launch.

3. Thorough Testing

We take testing seriously – because your reputation does.

• Hands On: We manage every testing phase, from functionality to security testing, to ensure your cryptocurrency meets the highest standards.
• Fixing: Any issues, bugs, vulnerabilities or compliance problems are fixed before launch.
• Validation: We ensure your cryptocurrency meets industry standards and regulations so you can maintain investor confidence.

4. Launch Ready

Your cryptocurrency’s success begins with a smooth launch.

• Technical Deployment: We handle the technical setup so everything runs smoothly from day one.
• Strategic Rollout: We work with you to strategise the launch to your target audience.

5. Partner Network

Launching a cryptocurrency is more than just technology. With over seven years in the crypto industry, we’ve developed a robust network of connections. If needed, we can suggest trusted partners specializing in areas like legal compliance and marketing to help ensure your project’s success.

6. Ongoing Maintenance

• Maintenance and Scaling: From fixing bugs to adding new features we’ll support your project throughout.
• Long Term Growth: Whether expanding features or exploring new opportunities we’ll be here to guide your cryptocurrency’s future.

At Cyber Bee we’re not just developers – we’re your partners throughout the entire cryptocurrency journey. By working with you and solving your problems we’ll turn your idea into a long term success.

Get in touch with us and let’s get started!󠁧󠁢󠁳󠁣󠁴󠁿