The growth in cryptocurrency values since Bitcoin launched in 2009 has seen a lot of investors and traders become rich, with the likes of Binance, Tether, and Ethereum all following in its wake.
Once seen as a novelty, the functionality of cryptocurrencies has grown as more industries begin to recognize it as a useful alternative to traditional currencies that is suited to the digital era.
Cryptocurrency expert Jiyoung Kim provides crypto advice for consumers at TechReport, letting them know that investing in new coins helps to fuel the industry and can allow investors to make the most of innovative technologies and unique selling points, as well as having the potential for investments to rise in value.
The crypto market is currently home to thousands of crypto options and is a tempting market to burgeoning entrepreneurs who want to create their own. This can be difficult and costly, but the rewards of creating a successful cryptocurrency can make it worthwhile.
Crypto Costs
Generally speaking, the launch of a new cryptocurrency will cost anywhere between $38k to $211k, but this will depend on the complexity of the features. As you might expect, the cost of launching a new crypto coin will vary, but certain aspects of the process are essential to its launch.
Concept and White Paper
The process of creating a cryptocurrency will begin with creating a White paper that includes every detail of the concept. Its purpose will be to outline the plans and goals of the crypto, making it easier for potential investors to understand the vision and get behind the project.
A White paper will include the crypto’s characteristics and the smart contract or base crypto coin. The coin’s legal framework will also be outlined alongside the product details and values.
A roadmap defining how the new crypto should proceed will begin with the ICO (initial coin offering) details that let investors know more about its launch.
Regulatory Compliance
The implementation of a new cryptocurrency will also have to undergo rigorous checks to ensure it complies with local and international regulations.
Stakeholders and investors must be assured that there will be no potential regulatory challenges after the new crypto product is launched, so investing in a team of legal experts will eat a significant chunk of your budget.
Tech
Another aspect that will impact the overall cost of launching a new cryptocurrency is deciding whether you want to use an existing blockchain to host your coin or create a brand-new one.
You will have to spend money to create a website, digital wallets, tech framework, and many other features, with dedicated crypto developers providing these services.
The technology required for your launch will also depend on whether you plan on an ICO or (initial exchange offering). ICOs require the creator to entice investors and make funds through the sale of its cryptocurrency.
IEOs don’t require costly investor accounts as the exchange will be responsible for all aspects of the sale.
Marketing
A new cryptocurrency will rely on good marketing to reach potential investors and one of the best ways to do this is by creating a strong social media following. This is often easier said than done with algorithms making it difficult to reach target audiences without paying for sponsored posts.
Partnering with influencers that have a good reach in the crypto industry can also be helpful while investing in a PR firm can also ensure you reach relevant parts of the media who can help spread the word through stories and reviews.
Networking and holding public events can help you connect with potential investors and make sure people are talking about this new opportunity.
If you have spent time and money on creating a website to launch your product, you should also spend time on search engine optimization so it is visible in search rankings.
There are lots of ways of reaching your target audience, and your budget will determine which ones will best help the launch of your new cryptocurrency.