## Want to issue a cryptocurrency? Understand these three core questions first

Creating a cryptocurrency sounds cool, but in practice, you need to answer three fundamental questions: Are you issuing a coin or a token? What is your project’s actual use case? What is your budget?

Many crypto enthusiasts dream of their own token ecosystem, but the problem is that most people start off on the wrong foot. Blockchain technology itself is not hard to understand—the challenge is designing a feasible plan that attracts users.

## Coins vs. Tokens: Choosing wrong means wasting effort

The difference between the two seems simple but actually determines the complexity and cost of your entire project.

**Coins** require building your own blockchain. Imagine setting up the entire financial infrastructure—choosing a consensus mechanism, designing network architecture, recruiting validator nodes. Bitcoin Cash is an example of a fork of Bitcoin; while it saved some development time, it still requires a strong technical team and substantial funding.

**Tokens** are different—they are built on existing blockchains. Issuing tokens on Ethereum or Binance Smart Chain can be done in minutes. PancakeSwap’s CAKE token operates this way, enabling in-platform trading and governance rights on BSC.

Which one to choose depends on your ambition. DeFi projects and gaming applications usually only need tokens. But if you want to create a new consensus mechanism or network model, you’ll need to consider an independent coin.

The reality is: 90% of new projects should issue tokens, but some insist on creating coins. The result is spending ten times more money without better results.

## Three stages of technical implementation

### Stage 1: Planning and Design

Any token project must first clarify three things:

**Use case**—is it a medium of exchange, governance, utility tool, or financial asset? Vague positioning can lead to project failure. For example, if a stablecoin’s value anchoring mechanism is flawed, users won’t touch it.

**Tokenomics**—determines supply, distribution, and initial price. Poor design can cause the project to bleed from the start. Fixed supply tokens are usually minted once, while coins like Bitcoin are released gradually through mining.

**Legal status**—is critical. Different countries have vastly different regulations on crypto assets—some ban them outright, others encourage them. Doing your homework early can avoid regulatory risks later.

### Stage 2: Technology selection and development

**Choosing a blockchain platform** is the first step. Ethereum and Binance Smart Chain are mainstream choices because they have mature ERC-20 and BEP-20 standards, support smart contracts, and have complete ecosystems. Solana and Polygon offer faster transactions and lower fees.

**Consensus mechanism**—weigh the options. Proof of Stake (PoS) is low-cost and eco-friendly, now mainstream. Proof of Work (PoW) is more secure but consumes huge amounts of electricity. Most new projects choose PoS.

**Architecture design**—if you build your own blockchain, decide whether it’s public, private, or consortium. Public chains give users maximum freedom; private chains give creators maximum control. Polygon, as an Ethereum layer-2 network, offers a compromise: inheriting the security of the mainnet while allowing customization.

During development, test networks must be repeatedly validated. Never experiment directly on the mainnet.

### Stage 3: Auditing and launch

**Code auditing** is non-negotiable. Companies like Certik thoroughly review your smart contracts to find vulnerabilities. Cost around $15,000, but if hacked, the losses far exceed that.

**Compliance review**—communicate with legal experts. Clarify whether your token qualifies as a security, commodity, or other asset class. This determines your future operations.

Issuing tokens is simple—just call a mint function via smart contract. The real complexity lies in liquidity management, exchange listing applications, and community building.

## Quick guide to creating a BEP-20 token in five minutes (theoretical)

If you just want to try it out, the technical difficulty is actually low:

1. Connect MetaMask wallet to BSC
2. Open Remix IDE
3. Copy a BEP-20 contract template code
4. Change name, symbol, supply, etc.
5. Compile → deploy → pay Gas fee
6. Verify code on BscScan
7. Call mint function to create tokens

The whole process costs around $50. But that’s only the technical part.

The real challenge is outside this: how to make your token valuable? How to attract users? When to list on exchanges? These are the keys to success or failure.

## Cost realities

- **Cheapest**: Simple token = $50
- **Moderate**: Token + community operations = thousands of dollars
- **Professional**: Complete audit + marketing = tens of thousands of dollars
- **Building your own blockchain**: at least several months, potentially costing millions of dollars

Most people looking to make quick money are unprepared for these investments. They see a coin rise 1000x and want to copy it. As a result, 99% of new coins die.

## Listing on exchanges is the end, not the beginning

Even if your token is technically perfect, getting listed on an exchange requires strict review. The project background, team, legal compliance, tokenomics—each aspect is scrutinized. The entire process can take months.

## Final words

Creating a cryptocurrency requires a combination of technical, economic, and legal knowledge. Rushing to issue tokens only wastes time and money. Study successful cases carefully—understand why they succeeded; analyze failed projects—know which pitfalls to avoid.

If you’re just learning, small-scale experiments are fine. But if you want to create a truly competitive cryptocurrency, be prepared for long-term commitment.