Oct 15, 2018 at 01:30
Oct 15, 2018 at 06:50 UTC
How to Create Your Own Cryptocurrency?
The first cryptocurrency came into existence when the world economy was passing through the phase of 2008’s subprime crisis. During the economic crisis, usually, governments and banks start to print more money and flood it into the economy. The extra money helps to boost the economy. Cryptocurrencies created a financial system which is not controlled by any central bank, government, or individual. Satoshi Nakamoto released the first cryptocurrency, Bitcoin in 2009 as open source software. Blockchain technology empowers all individuals to create their own cryptocurrency. Currently, there are over 1,350 cryptocurrencies in use worldwide. It is not necessary that you should be an expert coder if you want to create your own cryptocurrency. Before you dive in, let’s check the process of creating your own cryptocurrency.
Before jumping to the process there are some things which you need to know
- An idea: Creating a coin or token just for the sake of creating is doomed to fail. There must be a purpose behind creating a cryptocurrency which needs to add value to society.
- Earn trust: To make your coin or token successful you need to build a community which follows your cryptocurrency. Maintaining a community is crucial for the success of a digital currency so pay attention to this point.
- Coding and security: If you are not an expert coder definitely you can hire one but you need to understand how your token or coin is going to work.
There are two ways to build your own cryptocurrency
- Build your own blockchain – it will have its own coin
- Use existing blockchain infrastructure like Ethereum – it will have its own token
Though coin and token both are cryptocurrencies but there is a difference between tokens and coins. Coins such as Bitcoin, Dogecoin, and Litecoin operate on their own blockchain while a token lives on the top of an existing blockchain infrastructure. So first you have to decide whether you want to go for a token or for a coin. If you are choosing coin you have to start from scratch. If you want to proceed with a token, you have to choose an existing blockchain infrastructure.
To build the token you can use the infrastructure of Ethereum or NEO. The tokens which are built on Ethereum blockchain are called ERC-20 tokens. Ethereum is well trusted and was the first to offer that kind of service. NEO is also similar to Ethereum. NEO uses NEP-5 standard token and allows the individuals to use NEO blockchain to create their own tokens and applications. NEO is the second most popular platform for creating tokens.
To create a token on Ethreum, you have to use Ethereum’s own programming language, Solidity while on NEO you can build with many different programming languages such as C++ and Java. Hence to create a token on NEO, you do not have to learn a new language, you can use a language that you may already be familiar with.
For the success of your token, it is important to choose the right developers. Although the idea is the key factors but a good team of developers is equally important. You need a talented and trustworthy team to bring your idea to life. It will be good if you hire people who have years of experience in blockchain technology. To build the relationship in the industry you can also become the part of the blockchain events which will help you in connecting with new people the industry.
Smart contracts are like traditional contracts. They are digital and run on the blockchain. Smart contract is executed automatically without the need for a third party. They cannot be changed. Inside a smart contract, rules are written. Users trust the smart contract, if a smart contract is correct, it cannot cheat the users. Rules of the smart contract are written by the developers so you have to decide these rules depending on how you want your ICO to work.
A smart contract is just code on which users trust. So they have to know whether it is secure or not. That is why you need a professional audit. With the professional audit not only users feel safe but you can also feel safe. The audit also brings legitimacy to your project.
A good white paper is also important for your project because investors use white paper to judge your project. In the White Paper do not forget to answer
- What is your idea
- Why your idea needed
- How you are going to use the ICO funds
- When you will release the token
- Project completion deadlines
- Tell about your team
Initial Coin Offering (ICO)
ICO is similar to Initial Public Offering (IPO). When a traditional company decides to go public on the stock exchange, the company offers an Initial Public Offering. IPO is a way to raise funds in exchange of shares. ICO is a way which is used by the blockchain savvy companies to raise funds for their crypto projects. In IPO investors buy shares while in ICOs investors buy tokens.
To make the ICO successful it is important to gain trust. Most successful ICOs usually have a strong team of developers and founders and a solid roadmap. With the roadmap, the investors get to know about the future plans of the company and how the company is going to use the funds.
Marketing the ICO
After completing all these tasks now it’s time to market your ICO. To make your ICO successful, you need the support of a loyal community. To build the trust you need a good website and social media presence. There are plenty of marketing tools which can help you to promote your ICO. To promote your ICO, you can use online marketing tools such as
- Social Media
- Press and Media
- Sponsored Content
- Email Marketing
Manage the community
It is also important to create a place where your community can talk to each other and can ask questions. You can use the instant messaging app Telegram for this purpose. It is one of the most trusted apps in the crypto world.
So this was our guide to create cryptocurrency, I hope the information will help you in creating your own cryptocurrency.