From paper to paperless currency, the world is changing the way it operates. Though the concept of digital currency is yet new to the common man, the markets are blown off by it. The economy is slowly shifting towards a more profound digital ecosystem. The newest and most trending talk of this system is the term called ‘cryptocurrency’. In the simplest form of explanation, a cryptocurrency is more or less a medium of exchange of digital information.
What’s a cryptocurrency anyway?
Just as we use normal currencies as a trade for getting what we want, cryptocurrency is used for obtaining digital data. The unique idea behind encouraging the use of digital currency is that it uses the method of cryptography for security purposes which makes it even more reliable.
Need for using cryptocurrencies
There’s no one reason for justifying the use of cryptocurrency in the markets, there are many. With the advent and popularity of Bitcoin, many new altcoins (a cryptocurrency category that serves as an alternative to Bitcoin) are gaining attention. Different people state different opinions for bracing this invigorating idea of shifting to cryptocurrencies. For instance:
- It’s fraud-proof- Due to the use of blockchain technology in the underlying system, the chances of frauds are almost none. All the individual currency/coin owners have encrypted identities which ensures legitimate record keeping
- Ease of accessibility- Trading in cryptocurrencies do not require anything more than a secure internet connection. Whoever has the access of the internet has the ease of working with cryptocurrencies
- No third-party involved- Another benefit that the blockchain technology provides is that it doesn’t require any third party in making transactions. Since cryptocurrency remains decentralized, you hold the full ownership rights. You can act as your own bank and make digital currency work for you in real-time.
How to create your own cryptocurrency
Advancing technology and methodologies have made the task of creating an altcoin or blockchain smooth like butter. Cryptocurrencies like ethereum as well as counterparty can easily create tokens too. First off, let’s go through the most basic steps that you need for creating your own cryptocurrency.
- If you’re not a technical person then a good choice is to get assistance of one such person. Associate with a technical partner for handling the coding part.
- Decide if you want to create a bitcoin fork or a new cryptocurrency from scratch and choose the option that suits your requirements well
Here’s an in-depth detail of both the options that’ll help you get to your decision.
Creating a new blockchain- If you are a self-expert when it comes to cryptocurrencies and coding who wishes to have full control over the coin code, this is the way to go. By creating your own altcoin from the very first step, you’ll be able to build new and unique features of your choice along with the unlimited ability to set all the parameter of your very own cryptocurrency. The pros of using this method are-
- A variety of options are available for customizing your coin and making it stand out
- You can choose if you wish to have miners or minters based on the earnings according to proof of work or proof of stake rewards
- The choice of block size, max coin supply limit and the rate for issuing new coins will always be yours
Creating a bitcoin fork- Though having control over everything sounds tempting, it can have certain drawbacks as well. Creating a bitcoin fork allows you to use the already existing, reliable open-source code for your cryptocurrency. In order to make a unique coin for your purpose, you can choose to use the code of closest coin that has the features you need and make changes to it later on. Pros of using this approach are:
- Launching your cryptocoin with a secure blockchain secures you from being exposed to fraudulent attacks such as double spending attacks as there are many miners on the network securing it
- You will already have access to features like built-in decentralized exchanges that will allow people to trade your cryptocurrency for digital assets
- Since you don’t need to go through the pain of coding and developing, it saves a lot of time and effort on your end
Now that you’ve figured out a way to go ahead with creating your own cryptocurrency, here are eight tips that’ll help you further:
1)What’s in it for consumers- Everybody is on the ready-set-go mode for creating new cryptocurrencies. You need to clearly define the benefits or USP of your currency for the end user in order to make a mark.
2)Utilize the community- It’s wrong to expect people to readily accept your cryptocurrency as and when it comes out. Focus on finding the pain points of the community, find the use-cases and reasons for your new currency to exist and then finally go ahead with the coding part.
3)Be sure about the development method- As defined earlier you can use either of the two methods to bring your new cryptocurrency to life. But if it has to be in your command, it’s better to opt for self-coding. While following this, you should ensure the choice of coding language in advance and stick to it.
4)Prototype first- Rather then explaining the concept or making it clear to others, you must create a prototype for approval. This will help you in maintaining the clarity of your concept.
5)Think like a hacker- Search for loopholes and downfalls of your cryptocurrency and keep doing this regularly. Try putting yourself in the shoes of a hacker and find the vulnerabilities.
6)Nobody’s perfect- That’s right and you don’t need to stress over it. Keep building your product at the right pace and deliver the most workable version of it as soon as it gets done. Changes and modifications are part of the process and you can work on them later too.
7)Find miners- As soon as you get your product done, you need miners. Instead of overselling your cryptocurrency to them, try to build trust, express your vision and share your intentions with them. This way, people will get an honest understanding of your idea which will make them stick to it for the longer run.
8) Investor search- Leave this for the end. Many people start with the idea of finding investors when they aren’t even sure about the uniqueness of their product. Avoid doing that and just stick to the exceptional execution part first.
Top established cryptocurrencies so far
Bitcoin- The name itself strikes a note and takes you to the digital currency space no matter you’ve been actively involved in it or not. Back in the year 2009, Bitcoin was the first decentralized cryptocurrency introduced to the world. Today, it has taken a leap and risen to a level where very less people expected it to be.
With the growth of bitcoins, many new cryptocurrencies and altcoins have been developed so far. But the important thing here is that not all of them have succeeded. Only a selected number of Altcoins have managed to establish themselves as strong contenders against bitcoin. Some of the most popular ones are
- Ethereum Classic
Many altcoins have been built and many have been discarded and crashed by the people due to one or the other reasons. What’s common about all of these big names in the cryptocurrency market is their sustainability.
The cryptocurrency market is rising at a high pace. So, if you’re planning to create your own cryptocurrency and keeping it alive in the markets, go follow these steps and make it worth.
Originally published at Techracers