Cryptocurrency is a virtual and digital currency that is ensured by cryptography. This makes it very difficult to spend double.
Many cryptocurrencies are distributed networks and are based on the technology of blockchain. Cryptocurrency is a digital asset that has been designed to work as an exchange medium. Cryptocurrency is a currency that doesn’t come in any physical form like coin or paper.
The UX and UI of the cryptocurrency are very easy to understand by all people. The newcomers who do not know anything about cryptocurrency can also easily understand the trading industry of crypto and the people can start trading quickly with a low learning curve.
Today cryptocurrency has become one of the best technologies which are informative and has also hit the digital world. Cryptocurrency has forced people today to change the views that they have regarding money and what is also generally seen as a store of value. When the issue arises of how much cryptocurrency costs, the answer contains a wide range of factors and is also long.
This is why a person should first start by understanding what cryptocurrency is and how he can make a crypto coin. Doing this will place the person in a better position to make the right decisions.
What is cryptocurrency?
In the financial world of today, cryptocurrency can be defined as money that is operating in the digital world. This seemed to be very unreal in the start especially when people considered that cryptocurrencies are not physical that a person can touch. It has become important for investors and stakeholders to understand how cryptocurrency helps in making money for crypto companies.
Cryptocurrencies exist on the blockchain which generally preserves the transactions and also allows peer-to-peer payments that are directed through a system. This is a very important component of the digital money platform which is reputable and this is something that the Crypto developers are also strict about maintaining.
Why is there a need to create a cryptocurrency?
It is not necessary to hire a professional developer of cryptocurrency to create a cryptocurrency. If a person is not tech savvy, any type of cryptocurrency can be created by him on a budget. This is because of the mining, and hashing and also because of the consensus algorithms which are available on the online platforms. If a person doesn’t have a clue what consensus algorithms and hashtags he needs to create a cryptocurrency, there are chances that the person can overspend the budget on some things which he will not need. No matter the kind of cryptocurrency that a person wants to create, it is important to know the different kinds of technology that are needed to set up the digital currency.
While understand the topic of cryptocurrency, a person needs to have some knowledge about the process of the development of cryptocurrency.
- Cutting-edge Technological matters
- Conception & White paper development
- Crypto wallet & Investors dashboard development
- Implement Initial offering (ICO, IEO)
- Marketing Crypto based on the Coin Owner Requirement
- Listing a Cryptocurrency on the Popular crypto exchange platforms
Development stages of cryptocurrency
Cryptocurrency has defined development stages. The classification generally depends upon the angle that a person is ready to take. It depends on the services that a person needs, steps in the phase of development, and also the exact steps that a person has to take. We will be taking the side of services here because it becomes easier to define the cost of the total cryptocurrency in this way.
The breakdown of the budget, in short, is given below:
- Consulting cost accounts for 5%
- Design cost accounts for 15%
- Development cost accounts for 35%
- QA (Testing) cost accounts for 25%
- Deployment cost accounts for 5%
- Marketing cost accounts for 15%
- Maintenance cost accounts for about 15-20% of the total cost.
These percentages outline the cost of the total services that will be required by you. They can also go overboard making the total sum to be 100% in case a person needs to pay for the tools and some services.
Consulting, designing, and development
If a person is developing a cryptocurrency on his own, all the expenses incurred by him would be free because as the project proceeds, the person will be working on the new design of cryptocurrency and he will also be required to write all the codes checking the forums of free consultation simultaneously. However, if a person has limited knowledge and if the budget is allowing the person to hire some experts to help him in designing and developing the cryptocurrency, the cost that he can expect to incur has been given below.
Read Also: Blockchain Application Development- Overview And 7 Steps To Develop It
A front-end and back-end developer who is skillful and highly experienced can demand a $140+/hour rate in most developed countries. The average rate is generally about $70/hour but a beginner who is looking for some experience in this particular field can demand as little money as $35/hour.
Besides the requirement of a developer, a person can also need a solidity developer to help him to write a smart contract. The salary of the solidity developer ranges from $81 to $100 per hour. In most cases, an engineer is required to work on the accelerators and assets and he can also help to set up the infrastructure of the organization. A software engineer can help the person launch the product and also maintain components of the crypto platform. The engineer can help in integrating the new cryptocurrency with the other block change and monitoring the smart contracts. The engineers can charge about $85/hour.
A UX/UI and designer of the product is the person who could generally work on the design of cryptocurrency, the experience of the website, feel, and touch. This person is the first member of the team of marketing and since the design of the cryptocurrency directly impacts the upcoming sales of cryptocurrency hence deciding the success of the product. The average rate of these product designers is $40-$50/hour.
These are some of the must-have people to help in designing the product, developing the product, and deploying it. If the budget allows, you can also hire an experienced and skillful manager of the product to manage and control the team of coding professionals. Multiple studies have been conducted on project success management and it has been proved that the availability of a project manager is crucial for success.
Legal and QA costs in cryptocurrency
A person shouldn’t be surprised that almost a quarter of the budget can go to quality assurance services before the person deploys the new currency to this world. Some testers can prevent this disaster from happening so a proper QA helps to minimize the negative impact a faulty logic or a bug in the code can have. The services of these testers can cause about $107k per year.
Legal assistance in the world of crypto is the foundation of a successful launch of cryptocurrency. A person needs to know and deploy the local law on the blockchain, competition, finance, cryptocurrency, etc. Many countries are developing such laws, you should be aware that the rules can change fast. A legal counsel requires $200k-$300k to create any cryptocurrency. We recommend getting this type of assistance on board or hiring expert-by-hour rates to get some consultation regarding the development of cryptocurrency.
Marketing in the launch of Crypto
The budget for marketing in the launch of Crypto can generally be a black hole because there is never a right time when a person has made enough advertisement or efforts in the marketing. The minimum here includes:
- Social media accounts and cooperation with the influencers can cost $30-$100/post.
- The dedicated website for cryptocurrency can cost about $1,000.
- Participation in the exchange of crypto. This would be a percentage from the exchange or can be a flat rate. The total cost generally depends upon the number of exchanges that a person can register at and the conditions of cooperation.
- The white paper can cost about $1,500-$6,000.
- Integration with various wallets.
Launch of ICO
ICO is an indispensable element that is required to launch a new cryptocurrency. It can help a person to raise the funds and develop further currency. It can also help a person to make a name for their startup in the community. ICO usually consists of:
- White paper
- Smart contract
- ERC20 token
- Security audit + security specialist for maintenance
Most of the steps have been discussed in the breakdown of the cost to create a cryptocurrency. The missing thing is a security consideration. The rate of a cyber specialist amounts to $40/hour on average. The total budget for ICO security can generally be about $10,000. There is also a security audit required who can look outside the existing system and can spot some issues and vulnerabilities. The audit costs can amount to $3,000.
What are some of the core concepts to create a cryptocurrency?
There are various articles written on the difference between tokens and coins in the context of the development of cryptocurrency. You must be probably aware of them. Here we would like to focus on some of the specifics of the token and coin in terms of the calculation of cost.
Token vs coin in the cost of cryptocurrency
The selection of a token or a coin for the cryptocurrency core generally depends on you. It generally depends on what the user needs for the cryptocurrency and how you are planning to use it. Let us define some of the contexts to outline the variation.
- Coins provide the creator with the highest level of independence and flexibility. Coins are the core of a cryptocurrency and they are accepted by exchanges. Coins can be used in many cases in the future. This freedom of usage generally comes at some price. Coins require some higher investment for maintenance and development and they also help to support the cost in the long run.
- Tokens in the world of crypto are considered to be easy and cheap in deployment and development. They are generally built on top of a blockchain that exists. Own nodes are not required by them. Tokens are not able to offer that much flexibility.
When it comes to the price, a person can develop a contract for as little as $3,000 and the price can also generally increase with complicated logic and token requirements. A person can pay $7,000 and also $45,000. If a person is planning to develop a token, he should decide to get a consultation from an expert who is an expert in the field of tokenization. This team or person can help a person to organize all his requirements and can also help the person to create a plan which is initial for all the development.
If we talk about the coins, the answer to the question of the cost would be that it depends. If a person is a developer and the person has some kind of experience, the person will only need hardware. He will have to do some coding and he will launch the coin. These expenses can be free if a person is doing everything on his own. But if not, the developer will have to incur huge expenses.
The right approach to developing any cryptocurrency app
It is not very easy to develop a cryptocurrency app. First of all, a person is required to search for the best mobile app development company for mobile apps. The person also needs to hire a blockchain developer who is dedicated. The developer will guide the person to develop their application of cryptocurrency. A person also has to keep in mind the various features that are used to exchange currencies like Bitcoin. If we talk about the app development of cryptocurrency, it means that a bitcoin app needs to be developed for both iOS and Android. The bitcoins can also be easily used to swap them by purchasing or selling them. If a person wishes to exchange a considerable amount of money, the person can easily send the bitcoin instead of sending the amount.
List of some of the apps for cryptocurrency
Coin stats- This is one of the best and also an ideal cryptocurrency application for exchanging cryptocurrency. This app is designed for people who are especially looking forward to tracking their investment in Bitcoin and getting some regular updates. A person can also have an analytical view of the date of the market including the price of different cryptocurrencies.
CoinCap- This app is generally developed for people who want to exchange cryptocurrency effectively and efficiently. Through the use of this app, a person can have access to the market data which is life with all the necessary information. This is the most famous application for cryptocurrency exchange. The users can get weekly and daily updates using this app.
Coinbase- This is a fantastic cryptocurrency app that allows users to sell or purchase cryptocurrency such as Ethereum, bitcoin, etc. It can also be used to exchange cryptocurrency.
Cryptocurrency exchange platforms which are available in the market
At present, there are two types of platforms that are available in the market:
- Centralized cryptocurrency exchange- Centralised cryptocurrency exchange is an online platform that is used to trade and purchase cryptocurrencies. This is the most common medium which is used by investors to sell and buy resources. The fees of trading are generally high in the exchange platform of the cryptocurrency but it can be easily used with advanced features such as charting and trading.
- Decentralized cryptocurrency exchange- Allows the peer-to-peer direct transaction from the digital wallet without going through any intermediary.
The total cost of creating a new cryptocurrency in 2023
Each separate part of the process of the development of cryptocurrency costs differently. It can cost in the hourly rates which are required by the experts. If we analyze the simple calculations, the total cost which is required to build cryptocurrency can amount to $145,000+ with all the counseling and services that a person needs.
Can a person save while creating a new cryptocurrency?
Yes, a person can save while creating a new cryptocurrency. The easiest way to reduce the cryptocurrency development cost is to hire an external service provider and hand over the project to him. While doing this you can save your money. You can even hire Strivemindz which has vast experience in the same projects and also has market expertise to make a cryptocurrency competitive and unique. You can trust Strivemindz for their services.
Through this blog, we have helped you to look at all the things which are required to get started with the world of cryptocurrency. You can earn your share at the back of some loyal customers.
As a leading blockchain development company in the UK, India and USA, we build decentralized applications, metaverses, crypto token exchanges, and more. Strivemindz’s blockchain development services allow you to store information digitality with peer-to-peer network formation. Get in touch with Strivemindz to head start your journey in the workforce cryptocurrency. Hire developers to expand your decentralized journey.