Ever wondered how Bitcoin, Ethereum, and Dogecoin started? At one point, they were just ideas—until someone took the leap and created them. Now, these digital currencies are reshaping the financial world.
But here’s the exciting part: you don’t need to be a tech genius or a billionaire to make your cryptocurrency. Due to technological advancement, the process is more accessible now than ever—whether you’re looking to launch a revolutionary blockchain project, create a fun meme token, or build a community-based digital currency.
In this TRU Insight, we’ll break down everything you need to know to make cryptocurrency—from choosing the right blockchain to coding and launching your cryptocurrency.
Understand the Basics of Cryptocurrency
The first question you must ask yourself shouldn’t be “how to make cryptocurrency?”
Instead, your first step should be to know the ins and outs of this digital currency.
Cryptocurrency started with a sole purpose: To allow a decentralized money and payment system. Through this innovation, people can access financial services without undergoing all the red tape of traditional banking systems.
This decentralization gives you access to the Peer-to-Peer (P2P) financial system, providing a faster and more efficient transfer for a cheaper fee.
But how can one ensure the decentralized system of cryptocurrency? It’s by running your cryptocurrency to a blockchain network.
Have the Right Blockchain Platform
Blockchain functions similarly to a database we know as it’s used to process, store, and secure all necessary pieces of information. However, blockchain is an innovative take on it as it stores all data on a distributed public ledger to make all transactions transparent and immutable, eliminating dual data processing.
With its convenient, efficient, and low-cost benefits, blockchain has disrupted our everyday lives.
In the sense of cryptocurrency, blockchain is a central feature that ensures security, transparency, and sustainability. Cryptocurrency is primarily decentralized, and this absence of central control makes it vulnerable to internal and external threats.
Only with blockchain can cryptocurrency be called it.
There are two options to approach this step: creating your blockchain network or using an existing blockchain like Ethereum or Solana.
Related:
Ultimate Beginner’s Guide to Ethereum Cryptocurrency + ETH Price in 2025
Guide to Solana – What is SOL and its Price Today in 2025
Write Your Crypto Whitepaper
Onto the actual idealization of your crypto – it’s time to define your cryptocurrency through a whitepaper.
A whitepaper is the formal documentation that outlines everything about your cryptocurrency, including its purpose, roadmap, use cases, and tokenomics or maximum supply.
In terms of purpose, you need to define whether your coin will be a utility, security, or governance token.
- Utility token provides access to a product and services within your blockchain ecosystem.
- Security token represents your ownership of investment in a coin. These tokens carry value outside the blockchain’s ecosystem, making them tradeable.
- Governance token signifies the decision-making or voting power of the token holders regarding the operations and overall system of the blockchain network.
Use cases, on the other hand, are the real-world solutions that your crypto aims to provide to users or holders. Notable crypto use cases include access to personal finance, smart contracts, the Internet of Things, digitized metals, and stablecoins.
This document will be the ultimate reference for donors, investors, developers, miners/validators, and traders.
Develop the Cryptocurrency
You then develop your cryptocurrency once you’re done with your whitepaper.
This phase requires knowledge and skills in coding and software development. Additionally, it’s undoubtedly the most capital-intensive phase due to the initial setup and acquisition of equipment.
To set up your digital currency, you can use open-source protocols. This ensures that your cryptocurrency runs on its own blockchain network.
Developers may also fork an existing blockchain technology by modifying the blockchain codes to change fundamental regulations or protocols. Forking in cryptocurrency is essentially a process of improving coin governance. However, it could also result in the creation of new crypto derived from the initial blockchain.
Choose a Consensus Mechanism
A consensus mechanism is a critical feature of blockchain technologies. It’s a programming process that ensures the validity of all transactions and overall network security.
It’s used to achieve network agreement and trust in a largely decentralized market. There are different types of consensus mechanisms integrated into a cryptocurrency system. However, there are two notable types: Proof-of-Work (PoW) and Proof-of-Stake (PoS).
Proof-of-Work (PoW)
Proof-of-work is probably the most popular method to validate and generate new blocks or coins in the blockchain system. Bitcoin, the largest cryptocurrency per market capitalization, uses this consensus mechanism.
A PoW-backed blockchain requires crypto miners, who are responsible for solving complex equations to generate new coins. This complexity of equations calls for high computational effort, which entails increased software, hardware, and energy consumption.
These efforts cause environmental strain, making it the criticized consensus mechanism among the two.
Proof-of-Stake (PoS)
PoS involves staking—a process of locking your crypto assets into the blockchain network to support its operation. This means you cannot use your staked asset on anything aside from supporting the blockchain operation.
In its first instance through Peercoin, Proof-of-Stake addressed the environmental strain caused by PoW systems. Ultimately, it eliminates the need for extreme computational power by involving the community of validators.
The absence of high computational power entails a cut in cryptocurrency fees and increased transaction validation.
Ensure Security and Compliance
After creating your crypto, you must ensure its legitimacy by complying with governmental and international standards.
According to the Financial Action Task Force, a cryptocurrency should ensure that all developers, miners, and validators pass the Know-Your-Customer (KYC) and enhanced due diligence (EDD) policy to combat money laundering and financing of terrorists.
In this phase, utilizing the expertise of a legal professional is critical to ensure proper compliance with laws.
Additionally, a security system should be implemented to prevent 51% attacks and pump-and-dump schemes– two of the most common yet extremely detrimental risks that all crypto projects face.
51% of attacks occur when over 51% or most of the miners or validators take control of the protocols. This potential threat could alter the blockchain’s system to facilitate fraudulent transactions like double-spending.
On the other hand, the pump-and-dump scheme is categorized as a market manipulation scheme as the operator artificially creates inflation to lure investors into the market and boost its price.
Once the price dramatically increases, the operator will dump or sell off all their held securities at a profit.
