Digital Currency is the new way to make money. Here are important steps to create your own cryptocurrency like Bitcoin/Litecoin.
The term “cryptocurrency” was first heard by many people when Bitcoin was introduced in 2009. Today, it is one of the top digital currencies in the world. Cryptocurrency commonly refers to digital currency or asset that was created to secure the medium of transactions of money. Also known as Coin, Token & ICO in the development industries.
When we first heard about cryptocurrency, most of us ignored it as a temporary thing that will probably fade away in a few years or so, but now we understand that cryptocurrencies are here to stay.
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- Difference Between a Coin and a Token
- Building Your Own Blockchain
- List of Famous Cryptocurrencies:
- Steps to Create Your Own Cryptocurrency
- Getting a Coin or Token Created by a Cryptocurrency Creation Platform/Service
- Our Cryptocurrency Development Services
Difference Between a Coin and a Token
While most people, including many professional investors, think that both coins and tokens represent the same thing, it is not actually true. Coins and tokens are two different types of cryptocurrencies.
Cryptocurrencies that operate on their own blockchains are called coins. Common examples include bitcoin, Litecoin, etc. Tokens, on the other hand, operate on an existing blockchain system like Ethereum.
The blockchain is a collection of transaction ledgers. Since coins have their own blockchains, they maintain their own network of transactions, while tokens make use of the underlying blockchain technology for verifying their transactions. Coins are considered ideal for the transaction of money and other financial assets. Tokens are mostly used for creating smart contracts for various things like physical items, reward points or anything else.
Tokens are usually sold through ICO (initial coin offering) events in exchange for popular coins. Coins can be directly purchased in the exchange market.
Building Your Own Blockchain
As we said before, building a coin will require you to have your own blockchain. Here, you have two options – you can either build a blockchain from scratch or you can modify an existing blockchain according to your coin requirements. For both options, you will require considerable technical knowledge and coding skills. Alternatively, you can seek the help of a professional code developer.
The process of building a blockchain system involves the following steps:
- Identifying the right subject matter based on the things that blockchain can do – data verification, smart contracts, and smart asset management.
- Finding a method of agreement (consensus) that makes the perfect sense for your blockchain idea.
- Choosing the right blockchain platform from options like BigChainDB, Corda, Eris: DB, Ethereum, Multichain, Quorum, etc.
- Deciding the terms and features for node creation.
- Configuring the blockchain for various elements like permissions, key management, asset issuance, parameters, block signatures, etc.
- Creating APIs for smart contracts, key pair & address generation, data storage and access, etc. (optional)
- Designing the user interface and admin panel using a front-end programing language and an external database and web server.
- Implementing future technologies like Artificial Intelligence (AI), Cloud, Data Analytics, Machine Learning, etc for further enhancing the power of the blockchain. (optional)
However, if you are planning to create a new token, you will just have to choose a reliable blockchain standard like Ethereum’s ERC20 for your tokens to operate on, and you are good to go.
Many people now wonder if it is possible for them to create their own cryptocurrency and if yes, then how. Let’s find out.
List of Famous Cryptocurrencies:
- Litecoin (LTC)
- Ethereum (ETH)
- Zcash (ZEC)
- Ripple (XRP)
- Monero (XMR)
Steps to Create Your Own Cryptocurrency
First of all, yes, it is absolutely possible to start a new cryptocurrency of your own. The process of creating a digital currency involves writing sophisticated code, which is much easier than creating an actual physical currency.
Anyone with even basic coding skills can easily write a digital currency code, but creating a cryptocurrency is much more than just the coding part.
Here are a few things you need to do in order to successfully create a cryptocurrency and get it off the ground.
Find a Community for Your Currency
Before you even start creating your cryptocurrency, the first step should be to find a community that is interested in the type of currency you want to create.
Engage in the community to find out what type of digital currency people actually want and how can you give it to them. It has to be relevant to their requirements. Once you build a community around your idea, it is time to start to code.
Code to Last Long
Coding your own cryptocurrency is not going to be a very difficult or time-consuming process as the code of Bitcoin/Litecoin is already available for free on GitHub. The time to make your own currency will depend on how much change you wish to implement in your code.
For instance, it is advisable to build a future-oriented cryptocurrency. Do proper market research to figure out what will be in demand in the coming days or years, and build your digital currency around that.
For the coding part, you may need to brush up on your C++ skills as it may take some advanced knowledge of the language to build your own customized features.
To build a coin that users actually like and stick to, you must especially focus on things like fixing bugs, enabling and maintaining proper security, educating people about the risks, etc.
Get the Mining Started
You will have to invest some time in the promotion of your coin, at least in the beginning. Mining is the next major thing in the cryptocurrency-building process.
You will need to promote your coin to potential users to initiate the mining process so that your currency starts getting some value in the market.
You need to tell people how your cryptocurrency is different from others in the market and how they can benefit from it. Some other options include introductory offers, referral benefits, online marketing, etc.
Build a Merchant Base
Once you have got some miners digging into your coins, the next thing you need to acquire is a team of merchants who are actually interested in buying and selling your currency for actual things.
Building a marketplace is also important so that your customers have a place to spend the currency. Building a merchant base is more or less similar to building a customer base. It’s all about building confidence and trust in your product.
If you are confident in your products and your motives for them, you are ready to market your coin to friends, and businessmen, on forums, and social sites.
Make sure you target an exact potential group of merchants, rather than wasting your time on many people. Explore the popular cryptocurrency markets on the internet.
In fact, several other Bitcoin alternatives have been created over the years that are gradually making their marks in the digital world. Check out these 10 most profitable alternatives to Bitcoin.
Target Local Than Global
Instead of trying to cover a global market through your cryptocurrency, you should instead focus on your local market, at least for the first few years. No matter what experts say, it is not likely that a single currency will ever dominate the world market.
So, it’s better to target a limited market where you actually have a chance of making big. Just make sure that your local currency is usable in the global market as well, in case it ever makes that big.
It is also much easier to build a good market in your local area, as people know you and can trust you more easily.
So, this is how you make and market a cryptocurrency to begin in the skyrocketing market for digital coins. Feel free to share the tips with more of your friends and colleagues who are looking to make big in this industry.
Getting a Coin or Token Created by a Cryptocurrency Creation Platform/Service
If you are not technically sound but still want to create and launch your own cryptocurrency, the best option is to seek the help of a cryptocurrency creation service which will handle all the technical work and you get a finished token. There are some online platforms like CryptoLife that can give you a custom coin that you can modify according to your project requirements.
There are many other tech companies and services that can help with the development of your cryptocoin. Make sure that the service you hire delivers the entire source code of your coin along with the ownership rights.
Another alternative is to develop a token on an existing blockchain standard like ERC20, which is the Ethereum blockchain standard being used by many new cryptocurrencies. You can download the code for the token and contracts directly online and then customize it. There are also some platforms that can guide you through the customization process.
Our Cryptocurrency Development Services
SAG IPL is the leading IT company in India, offering the best cryptocurrency development services to its client. Our smart coin developers have the skills to perform the following task:
- Crypto Coin Development
- Bitcoin Wallet Creation
- Mining crypto coins
- Crypto Coin Explorer
- Bitcoin Pool Mining
- Coin Admin Development
- Initial coin offering (ICO)
- Coin Web Wallet
- Exchange Software Development