Cryptocurrency has become one of the most transformative technologies to hit the digital world in the last decade. It has forced people to change their typical views regarding money and what can be seen as a store of value. When it comes to the issue of how much it costs to create the crypto coin, the answer is long and contains a wide range of factors.
This is why you should start by understanding what cryptocurrency is and how to make a crypto coin. Doing so will place you in a better position to make the right decisions.
What Exactly Is a Cryptocurrency?
In today’s financial world, we can define cryptocurrencies as money that operates in the digital world. At first, this seemed unreal to most of us, especially when you considered that cryptocurrencies are not something physical that one could touch. But things have come a long way since then. This is why it has also become important for stakeholders and investors to understand exactly how crypto companies make money.
Cryptocurrencies exist on a blockchain, which preserves its transactions and allows for direct peer-to-peer payments through a trustless system. This is a crucial component of any reputable digital money platform and something crypto developers are often extremely adamant about maintaining.
Cost of Creating Your Own Cryptocurrency
To understand the true cost of creating a cryptocurrency, you must first start by looking at the aspects involved with its creation. These will help give you a clearer picture of things that have monetary costs. They include the following:
Organizing and Managing Legal and Financial Issues
You must comply with international regulations related to crypto and obtain legal status before you start to mint anything. You must remember that digital money is still a relatively new technology, which means it may still have some legal and regulatory challenges for stakeholders.
You will have to hire cryptocurrency legal experts to help you work within the parameters of the law. Regardless of which firm you decide to go with, it will cost you a significant amount of money because such expertise is not easy to come by. It would be wise to keep this in mind before you start creating a cryptocurrency.
Technical Components
If you are familiar with cryptocurrencies, you already know that before you can create a new coin, you’ll have to determine whether you will build a new blockchain or host your coin on an existing blockchain. It is easier and far less expensive to host a coin on an existing blockchain than it is to develop and create a new one.
ICO and IEO
ICO (Initial Coin Offering) and IEO (Initial Exchange Offering) are the tokens released after development via a crowd sale in exchange for existing assets. An ICO is a method of raising funds using a freshly minted cryptocurrency. Investors purchase them in the hopes of gaining some profit when the token’s value rises. This is also the same for an IEO, with the main distinction being that IEO gets its funding via crypto exchanges. Fresh tokens can also be bought before they are issued to the market, allowing early investors to recoup their contributions once the price goes up.
Even though these may seem like good money generating ideas, you have to remember that they come with their own costs, as most exchanges require an upfront fee to list a new coin.
The Real Cost of Developing Your Cryptocurrency
The truth is that the cost of creating a new cryptocurrency usually fluctuates every year because of trends and sector influencers. In some cases, the market prices can rise with every passing second because it is a platform that is expanding three times faster than any other trading methodology.
With that said, the average cost linked with developing a cryptocurrency is anywhere between $38,000 and $91,000. The cost of one that has medium-complexity features ranges from $50,000 to $120,000. For the complicated and feature-filled coins, the cost can be $121,000 to $211,000, or even more in some cases.
As you can see, it is hard to offer a definite answer on how much it costs to create a cryptocurrency without first determining the kind of coin or token you want to make and the features you intend to have for the first version.
Conclusion
If you have already made up your mind to launch your cryptocurrency, you’ll have to accept that it’s a fairly complex procedure. In most cases, the best thing you can do is hire a reputable crypto developer. You can also consider hiring a blockchain development firm that will have skilled blockchain creators on hand, along with legal experts and business analysts who will work with you on your project to ensure that it is a success. From Crypto developers to MetaTrader programmers, you can find a freelancer on Guru.
