Create your own cryptocurrency and rate it on your own exchange
Create your own cryptocurrency on your own exchange: Open-source exchange software makes it easy to start a coin, says HollaEx co-founder Adrian Pollard.
Crypto newbies and even experts have a common gripe when it comes to starting a new coin or token. Both camps tend to dislike the start-up nature of a coin. It’s not simple, it’s not transparent, and it’s hard to manage starting a coin. Rookies struggle to figure out how to price their coin, let alone share it. Experts too. Challenges discourage people from even trying.
Starting a new coin or token: the breakdown
For the uninitiated, when we talk about tokens and coins, it is important to note that they are used interchangeably. The difference for a token is that they usually use existing blockchains like Ethereum or even Bitcoin’s blockchain. But the vast majority use the ERC-20 token standard because it increases usability and chances of adoption.
Technically, the term “coin” would use its own blockchain. This is what Dogecoin did by forking Bitcoin. Dogecoin is essentially a Bitcoin clone with minor changes along the way.
For the purposes of this article, we will use coin and token interchangeably.
Typically, coin and token creators change easily configurable settings. These are things like the supply or number of coins, the name of the coin, and the symbol (think BTC, DOGE, etc.). All of this is easy to configure, but one thing that is not easy to configure is the the price. The price of a part requires much more work.
Even if you create your own piece with the perfect purpose, there will still be no prize. This is where all new coin or token creators hit a wall.
Create your own cryptocurrency: Price
Where do the prices come from? You can set a static price, but that’s not good for new and unfamiliar things. Simply put, you should place your coin in a “supply and demand” scenario and let others decide the price. What this really means is that people, lots of people, have to start buying and selling the coin over a long period of time. There’s no better place for this to happen than on an exchange.
This is why popular exchanges like uniswap are so great. They allow the creators of coins to make markets in hopes of pricing their currency. These platforms are fine if your piece is already well known. But they’re not great if you’re just getting started. The reality is that they are expensive to use for piece price discovery.
Why? First, the fees for buying and selling on these platforms are high because they require a blockchain transaction or an on-chain transaction. That means you could pay around $5 (if you’re lucky) or even $50 per transaction. This is why centralized exchanges remain much more popular.
Not only that, but centralized exchanges are better for new coins because they have a transparent order book that makes the price discovery process easier. Cheaper and faster than using a decentralized exchange, it is easy to see why a new coin creator will want to register on these centralized platforms.
Create your own cryptocurrency: Communication
Then there’s the other fly in the ointment. Something that is rarely talked about, but every good business owner knows, is a problem. You cannot easily communicate the idea of the coin on these decentralized exchanges. If you can’t share your idea, people will never accept the idea for the coin, no matter how much it costs. You may not even be able to give away your coin for free!
Many coin creators go to great lengths to list their coin on the large popular centralized exchanges in hopes of getting their coin’s logo and branding known to the public. But most cannot afford to do so and compromise by only listing on a decentralized exchange (DEX).
A lot of expense will be spent on this endeavor – both by coin creator and users. Countless coins are added to DEXs every day. But none of these DEXs have a way to display coin information. Not even a logo is easily added!
Frankly, pieces without a clear brand or house are doomed.
If a coin is not on a proper exchange, with a clear order book, clear historical price chart, login/register page, wallet system for easy and free deposits/withdrawals, and clear logos and icons, then everything else will be wasted effort guaranteed.
Who is going to buy your token or coin if they can’t even see the logo or even the most basic semblance of information on it?
An exchange platform is the lifeblood of any new coin and token, as it communicates the intent and goals of the token. This leads to the discovery of real prices.
Create Your Own Cryptocurrency: Coin Startup Cost
Starting a coin is usually expensive all things considered. As mentioned in this article, it can cost around $400 (often more) and depends on Ethereum traffic. After the initial coin creation process, you will likely decide to list on a DEX, which will again require several on-chain payments to register the coin on the DEX. There is also the issue of liquidity provision which is a whole other matter. But let’s just say you’ll need more than $400.
A safer way to start a coin is to simply get it listed on a big centralized exchange like Binance, but you’ll be looking at $100,000 – if you’re lucky. The big platforms won’t list anything, even if you have the money.
All those unnecessary hassles and endless startup costs are off-putting to businesses and startups. As a result, this puts many people on the fence about launching their own cryptocurrency. It is truly a frustrating experience, even for the most crypto-advanced startups and companies.
Every coin creator needs their own special and dedicated marketplace for their coin. Having your own digital marketplace allows for careful management of new coin creation, pricing, supply issuance and, of course, communication. Managing a market or an exchange is like having your own mini economic system with centralized information for your users.
An exchange is the logical starting point for coin creators, an exchange can more easily manage coin setup, market and prices.
An exchange software kit, which provides all the tools for sourcing and distributing coins directly to user accounts, is the main thing coin creators need at the start of their journey. The platform can manage each user’s coin balance. And, it can automatically handle deposits and withdrawals of not only your own new coin, but also other coins like Bitcoin and Ethereum. Of course, since everything is centralized on your own computer, the fees you would normally pay to the blockchain are no longer necessary. This reduces start-up costs.
To add, with a bit of technical knowledge, using a free open-source exchange software solution to further reduce costs is a smart choice.
Centralized technology mixed with DeFi
Exchange software tools take the burden off coin creators and crypto projects. An exchange functions as a basis for the coin: it includes the wallet, the price charts and all the mechanisms to buy and sell the coin. Anyone can start their coin with the trading software for free. Standalone coin creation software, on the other hand, will only do 5% of the work of starting a new coin.
One option is to start a part with a white label solution. That’s a fancy way of saying a ready-made solution. This means the difficult stages of a part’s life cycle can be more easily managed as it provides greater control and option.
For example, instead of tossing the token on the blockchain first, users can simply create the token in the exchange software itself first internally. This means no blockchain fees and less hassle in the coin creation process. Having an exchange platform will also allow pre-marketing, communication and pre-trading of other coins like BTC or ETH. It also means that anyone with a user base can offer the typical crypto exchange services.
This process is a much safer and more intuitive way to run a crypto project and business, as it requires less third-party coordination. Instead, everything is handled by a single operator in their own web browser.
Customization is also much easier using a swap software kit like HollaEx because it allows changes to be made on the fly without the request of a programmer. This means that listing your coin and exchange on popular websites such as CoinMarketCap and CoinGecko will be easier. Simply adjust what is needed on your exchange based on the requirements of these parts listing websites. Customization is not possible if your coin is listed on third-party exchanges, as you do not control the platform.
By running your own exchange, you not only bypass costly blockchain setup fees, but you have also simplified your process for managing tokens, branding, and overall crypto businesses. The tokenomic system will be much simpler to design as the token or coin project develops.
Create and price your coin with exchange software
Finally, creating your coin on your own exchange that you control will mean that many more trading avenues will present themselves. For example, once your coin is priced, you can start reward systems for using your exchange. You can even have other tokens representing other goods and services. Your clientele can subscribe to it to get dibs earlier on the token supply. But at the end of the day, there is no better way to price your coin than to have your own exchange.
Create your own cryptocurrency: how to get started
The best place to start is to research white label crypto exchange toolkits and try them out yourself. Free options open to use are always better. They have been vetted and are used in the public domain and follow the open crypto protocol philosophy. Good luck and happy coin making!
Got something to say about how to make your own cryptocurrency or something? Write to us or join the discussion in our Telegram channel.
All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.