How Much Does It Cost To Build Your Own Cryptocurrency?
Cryptocurrency is one of the most searched keywords, especially from the past couple of years. After traders started making profits with giant digital currencies like Bitcoin and Ethereum, often people think of creating a cryptocurrency of their own. Is that possible, if you ask? It definitely is! People who understand the mining process and blockchain technology often look for certain platforms and ideas to decode blocks. And if you are not well aware of the technology and process, you can still proceed with the idea of creating your cryptocurrency.
Before proceeding further to cost to build cryptocurrency, let’s have a clear idea as to what do you need to create your own cryptocurrency.
Things You Will Need to Create a Cryptocurrency
If you are not a tech-savvy, it is highly recommended that you must hire a professional cryptocurrency developer to create a cryptocurrency who are well aware of each segment of developing the same. There are different types of mining, consensus algorithms, and hashing required to create a digital currency.
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With the help of algorithms and a better understanding of technology, you will get a proper idea of what type of cryptocurrency you can create and how to set up the same. There are two different types of cryptocurrencies: Coin and Taken. Let’s understand the difference between both first.
What Is The Difference Between Coin & Token
Many people, in fact, crypto traders, sometimes think that both coins and token represent the same thing. However, it is not true. They both are different types of cryptocurrencies, you can trade for. Coins are those cryptocurrencies that operate on their own blockchains, for instance, Bitcoin and Litecoin. Currencies like Ethereum operates on the existing blockchain system, which is called Tokens. Coins maintain its own transactional network which is then used by Tokens underlying the technology that verifies its every transaction. Before answering how to create a cryptocurrency (step by step), this function must be cleared.
Tokens are utilised for creating smart contracts that can be carried forwards for physical items and reward points. Coins, on the other hand, are considered ideal that can be used for a transaction against financial assets and money. While traders are purchasing the Coins directly on the digital currency market, Token is sold through initial coin offering (ICO) events that can be exchanged for popular coins like Litecoin or Bitcoin.
What Will You Need To Develop Cryptocurrency?
Now when the concept of Coins and Tokens is clear, moving forward with the Cost of Creating A New Cryptocurrency, let’s pen down the key things you will need to proceed with the development.
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White Paper Development & Concept of The Project
Initially, the idea of your cryptocurrency must be very clear. The first document that you develop to create the Cryptocurrency is known as White Paper that includes a description of your currency idea. This document will help you get confidence in your investors as to how your Coin or Token will make the profit.
Following are the steps included in creating this document:
- Choosing the base crypto coin or smart contract, while developing the characteristics of your cryptocurrency
- Creating a legal framework of your coin or token
- Explanation of your values and specifics of the product
- Planning of the initial coin offering (ICO)
- Outlining of the entire roadmap which includes basic development plan of the project
- Handling Financial and Legal Matters
There are tons of regulatory issues that are involved in developing the legal concept of the cryptocurrency, which also includes legal liability and SEC prosecution.
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Technology & Algorithm
Under this step, you will need a professional and finest team of cryptocurrency developers as they will develop the technological framework, promo website, personal accounts, digital wallets, and any more features. Once you decide as to you will proceed further with the Coin or Token, your approach will differ in both cases.
- Initial Exchange Offerings (IEO): Under this offering, it doesn’t need an investor account as everything falls in the accountability of crypto exchange.
- Initial Coin Offerings (ICO): Under this offering, an investor account is created that involves heavy expenses in terms of marketing and inviting investors globally.
Cost of Creating Cryptocurrency
When it comes to the business of cryptocurrency, facts state that the market is booing every second of the trade. The business is growing three times faster as compared to other trading models seen in this industry. And if you are looking forward to proceeding in this business, this might be the right time to prepare your model.
After COVID-19 was declared as a pandemic, the volatility of this industry was seen at a very high level. One such example is the variation of Bitcoin prices over few years. The value of Bitcoin that started as USD9.35 in 2012, reached USD13,860.14 in December 2017.
Amid nationwide lockdown, people are now switching to the digital currencies as keeping cash and money is not preferred, even by the common generation.
The answer to how much it will really cost to put up a cryptocurrency, at this time, will help you in expanding your business worldwide, that too operating every hour of every day. When it comes to developing a cryptocurrency, it is quite easy as compared to other business models, and you do not lose all your savings which is quite common in other businesses.
Creating a cryptocurrency might cost anywhere between USD1,000 to USD5,000 depending on the features and built. Developers understand the need of rich features and customised build that your digital currency will need. However, you will need complete guidance while developing digital currency. And thus, it is important to hire a professional development company which is the right partner for your choice.
Owebest Technologies serve the right approach to every feature mentioned in the content. It is one of the leading IT and cryptocurrency development company that offers excellent and professional development services. The developers possess professional and experienced skills for the following tasks:
- Web Wallet for the coin
- Wallet Creation for Bitcoin
- Pool Mining for Bitcoin
- Initial Coin Offering (ICO)
- Initial Exchange Offering (IEO)
- Crypto Coin Explorer
- Cryptocurrency development
- Exchange software development
If we go backwards in time, Cryptocurrency platform is based on blockchain technology which was invented in the year 2008. Since then, it has gained and witnessed huge potential and publicity in the market, especially after the vast success of Bitcoin in the business. However, there are very few commercial development companies that can offer you the substantial benefits and estimates you are expecting right now with accurate development.
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This also brings the concern towards varying development cost to create a cryptocurrency that depends on the number of exact features you would want to introduce in your project. The mentioned prices above are just the average estimates according to the market implementation. In order to get the exact breakdown of the entire project and development of this business model, it is vital to discuss closely with the development company.
Owebest technologies offer a similar breakdown for free to get a better and details idea about the project including the development process and timeline needed.
So now when the idea of creating a cryptocurrency is clear, choose the best development company that will offer the best services giving an ideal and affordable answer to How much does it really cost to create a cryptocurrency? After all, its big bucks under this business model. The clock is ticking, and it is the right time to consult the technical partner as it will help you decide the better approach towards the development point by point.