I've noticed that many newcomers get confused about how new coins are issued in crypto. Let's figure it out because it really affects what’s worth investing in.

In traditional finance, issuance is controlled by central banks. In crypto, everything is different — the process is built directly into the blockchain algorithm. And there are several completely different approaches.

Let's take Bitcoin. This is a classic example of a fixed issuance cryptocurrency. A maximum of 21 million BTC, it will never be more. Miners receive a reward for creating blocks, but every 4 years this reward halves (halving). The last halving will occur around 2.14k. Currently, BTC is trading at about $77.74K. This creates a scarcity that many call "digital gold."

Litecoin follows a similar path but with some differences. There is a maximum of 84 million LTC, and halving occurs more frequently (every 840,000 blocks). LTC is currently worth about $54.40. The model is similar to Bitcoin but with different parameters.

And then there’s Dogecoin — a completely different story. There is no hard cap. About 5 billion DOGE are issued annually. Inflation gradually decreases in percentage terms, but theoretically, the supply is infinite. The current price of DOGE is $0.11. This model makes the coin less attractive to conservative investors.

Ethereum is a very interesting case. After switching to Proof of Stake in 2022, the issuance of the cryptocurrency depends on staking activity. Plus, they introduced EIP-1559, which burns transaction fees. This can make ETH deflationary. The current ETH price is around $2.14K. It’s an algorithmically managed issuance that responds to network activity.

Cardano uses Proof of Stake, where validators earn rewards for staking. ADA is currently trading at about $0.25. Stablecoins like USDT and USDC are pegged to bank reserves, and their issuance is controlled by the amount of backed assets. DAI works differently — it’s an algorithmic stablecoin, with issuance depending on crypto collateral. DAI is maintained at $1.00.

Why does all this matter? High issuance (like Dogecoin or meme coins such as Shiba Inu, where SHIB is traded at minimal levels) reduces the coin’s value. Limited issuance increases value but can create scalability issues. There are also risks of centralization — if developers can change issuance rules, it undermines trust in the project.

For investors, the main thing is to understand the issuance model of the specific project’s cryptocurrency. BNB is now at $657.90 (+1.37%), SOL at $87.56 (+1.73%), XRP at $1.38 (+0.50%). Different mechanisms, different prospects.

My advice: always read the project’s White Paper, see if the issuance is transparent. Track updates — changes in the issuance mechanism affect the price. And avoid assets with hyperinflationary models if you’re looking for long-term value storage.

In the end, fixed models are suitable for conservative investors, algorithmic ones for those willing to take risks. Always analyze how the issuance of new coins will impact the long term.