Understand how a cryptocurrency is created

The cryptocurrency market is no longer a gamble and is more than consolidated: with more than 21,000 cryptos in circulation, the segment has been expanding more and more, with several new technologies emerging to improve decentralized systems. But after all, do you know how a cryptocurrency is created ?

Despite being a complex universe, the creation itself is not that complicated. By the way, you can create a digital token yourself or your own Bitcoin (BTC). For this, however, it is necessary to have the ideal financial conditions and techniques for the feat. Check out all the details below.

What is Cryptocurrency?

Before we delve into the details of how a cryptocurrency is created , it is important that you understand the concept of this asset. The main one is the fact that cryptocurrency only exists in digital format, unlike fiat currencies, such as the euro, dollar and real.

Another particularity is the decentralizing power of the asset: while traditional currencies are regulated and issued by the Central Banks of each country, cryptocurrencies do not follow a fiduciary law.

Cryptocurrencies work in a decentralized way on blockchain networks, but their functionalities go far beyond digital. Bitcoin, for example, can be used for purchases in establishments and even for physical payments.

What is altcoin?

The term altcoin has become redundant over the years, after all, in its origin, it referred to any crypto other than Bitcoin. Today, with over 21,000 cryptos in circulation, it refers to the alternative tokens on the market.

Altcoins are developed for specific purposes, such as troubleshooting or rewarding users on certain platforms. In this group, some assets stand out, such as utility tokens and stablecoins, currencies whose value is stable and is linked to a fiduciary asset – Tether (USDT), known as the “digital dollar”, is the main example.

There are altcoins available for pennies on the market, while others are already fully consolidated – like Ethereum (ETH). A good part of these assets belong to networks with lower fees than the Bitcoin network, in addition to providing greater decision-making power for users.

How is a cryptocurrency created?

By understanding the concept of cryptocurrency, it becomes easier to understand its creation mechanisms. Let’s see below how this process is done and what are the necessary steps for a cryptocurrency to enter the market.

Forms of creation

There are two ways for a cryptocurrency to be created: the first involves a more time-consuming method, which requires more resources, while the other is done in a simple and accessible way for any user. It all depends on the purpose of the project, as well as its format and capitalization.

Every cryptocurrency is made on some blockchain – Ethereum, Solana and Cardano are the most famous on the market. To use these networks, the company needs to adjust to the rules of the platform and additional fees. Utility tokens, on the other hand, require less resources and bureaucracy, and can be made to represent any asset.

Interaction between the community

The process of creating a cryptocurrency involves several steps, in addition to the need to ensure that its implementation is actually adopted. After all, after being created, crypto needs to have market value – and it is in this sense that a strengthened community makes all the difference.

A cryptocurrency needs time to be accepted on a blockchain network and has the active participation of developers and enthusiasts for it to become stronger. Its leverage depends directly on the participation of other users, famous people and even the big tech lobby ( Dogecoin is a good example of this).


The issuance of digital currencies is usually done by mining, a kind of puzzle that solves mathematical problems in an automated way to generate new assets.

These puzzles require the use of advanced encryption software, as well as powerful machines to handle the activity. Therefore, cryptocurrency mining is considered one of the safest ways to transact digital money, in addition to not being controlled by government bodies.


Buying and selling also varies from asset to asset, with peer-to-peer (P2P) trading being the most decentralized. The easiest method for ordinary investors is via an exchange.

Just as it works on the Stock Exchange, exchanges allow the trading of crypto assets through practical and intuitive platforms. To trade, just register and comply with the brokerage rules.

The peer-to-peer method is done by the blockchain network and connects sellers and buyers willing to exchange assets. However, it is necessary to have a good technical knowledge to avoid hackers and fraud by anonymous users in these systems.

What is the amount spent to create a cryptocurrency?

The process of creating a cryptocurrency involves many costs depending on the purpose of the project and the way in which it is put into practice. In addition to the specific workforce for its development, it is necessary to take into account the fees of each blockchain network.

A platform like Ethereum or Cardano requires a minimum investment of between $15,000 and $40,000 for companies looking to issue a new token. The cost of creating expanded networks can be as high as $90,000.