The world is changing from fiat currency to digital currency. The concept of digital money is yet new to the common man; the markets are already swept away by it. The economy is slowly gearing towards a more profound digital ecosystem.
The most trending topic of this system is the word called ‘cryptocurrency.’ We will cover all the essential aspects of cryptocurrency, and at the end of the article, you will get to know how to create a cryptocurrency.
What is a Cryptocurrency?
A cryptocurrency is nothing but a virtual or digital currency that uses cryptography for security. It is difficult to forge cryptocurrency because of its security feature. Many cryptocurrencies are decentralized systems based on blockchain technology, a distributed ledger enforced by a different network of computers.
Three things you should know before creating a Cryptocurrency?
- You need to have a good idea
If you are creating a crypto coin or token for the sake of having one in the market will fail. It should have a purpose and need to add value to the world.
- You should obtain people’s trust
You need to build a crypto community and acquire their trust. Managing a crypto community is hard work, you have to pay a good amount of attention to this point.
- You need to have Coding and Crypto Security Knowledge
It is essential to have coding and crypto security team to make your cryptocurrency succeed in the market.
How to create your own cryptocurrency?
First of all, you have to decide whether you want to create cryptocurrency or crypto token
The following are the two ways of creating a cryptocurrency:
- Create a New Blockchain – If you are a self-expert in coding and blockchain technology and you wish to have full authority over the coin code, this is the way to go. By creating your own altcoin, you will be able to develop new and unique features of your choice. The benefits of following this method are:
- More variety of options are available for customizing your altcoin and you can stand out from the rest of the crypto coins.
- You can choose whether to have miners or minters based on the profits according to proof of stake or proof of work rewards.
- You can decide the block size, a maximum coin supply limit and the rate for issuing new coins.
- Use any blockchain platform – By using blockchain platforms like NEO and Ethereum you can create an application and can create your own crypto token. By utilizing these crypto platforms, it enables you to use the already existing, reliable open-source code for your cryptocurrency.
To create a unique coin for your purpose, you can choose to use the code of familiar coin. The familiar coin provides the features you need and also can make changes to it later on. Benefits of using this approach are:
- Launching your crypto coin with a reliable blockchain secures you from being exposed to fraudulent attacks.
- You will have prior access to features like built-in decentralized exchanges which will allow people to trade your cryptocurrency for digital assets.
- You do not have to go through the discomfort of coding and to develop; it saves a lot of time and effort.
By now you would have understood and decided what is the best approach to go ahead with creating your own cryptocurrency. The following are eight hints that will assist you further:
a.) What is in store for consumers – You need to clearly describe the benefits or USP of your cryptocurrency for the end user in order to make a mark.
b.) Utilize the community – You can not expect people to accept your cryptocurrency readily. You have to focus on finding the pain points of the community; you should provide the use-cases and reasons for your new currency to exist, and then finally go with the coding part.
c.) The development method – As explained earlier, you can use either of the two methods to create your new cryptocurrency. If you chose your crypto to be in your command, it’s better to opt for self-coding.
d.) Prototype – You must create a prototype of your cryptocurrency for approval. It will help you in maintaining the clarity of your concept.
e.) Imagine like a hacker – You have to search for loopholes of your cryptocurrency. You have to imagine like a hacker and find the loopholes.
f.) Remember nobody is perfect – Develop your product at the right pace and deliver the most usable version of it as soon as it gets done. Modifications are part of the process, and you can address them later, remember nobody is perfect.
g.) Hire Miners – Once your product is done, you need miners to mine your cryptocurrency. Rather than overselling your cryptocurrency to them, express your vision, try to build trust and share your plans with them. By this way, people will get an understanding of your idea which will make them adhere to it for a longer period.
h.) Searching for Investor – Most of the people start with the idea of finding investors, who themselves are not sure about the uniqueness of their product. You have to avoid searching for investors and hold on to the execution part first.
I presume this article – how to create your own cryptocurrency has given you insights of both technical and non-technical aspects.
The cryptocurrency market is growing at a high pace. If you are planning to create your own cryptocurrency and keeping it active in the markets, the above steps will be helpful in launching your cryptocurrency.