With the crowded cryptocurrency market, is there a need to create an additional coin? Even if there was need, how would you create a cryptocurrency when you are not an expert coder? When you put your mind to it, virtually anything is possible in the growing world of digital coins. Once you gain a good understanding of what makes a cryptocurrency, it is possible for you to know “how to create your own cryptocurrency?” Here are a few things you may want to consider:
1. Creating the Blockchain Network
The underlying technology behind cryptocurrencies is known as the blockchain. It refers to a system that records the transactions taking place on a secured network. To learn how to create your own cryptocurrency, you should be able to create your own blockchain. This requires you to be a trained coder and developer. If you put your mind to it, you can acquire these skills online by enrolling for any of the available tutorials.
However, that may take a while and prevent you from creating your own cryptocurrency soon enough. The alternative is to find a platform with existing code and change a few things to come up with your own blockchain. Once you have the underlying blockchain, what remains is to create a cryptocurrency.
2. Launching Your Cryptocurrency
Before you get going, it is important to understand that cryptocurrencies can exist either as tokens or coins. Coins are the kind of cryptocurrencies that come with independent ledgers on which transactions can be done. In most cases, new coins are created on forks of the existing Bitcoin blockchain. They are usually carried on an independent blockchain. Not so for tokens, which rely on an offshoot of an existing blockchain.
If you cannot go through the full hog to create your own cryptocurrency, you may consider outsourcing to specialized companies. Most of these cryptocurrency creation site only require you to provide some basic information such as logo and name. Of course, you will pay for the services of these sites. Once you have a cryptocurrency up and running, you need to issue it out to the market.
3. Issuing Cryptocurrencies to the Market
So you have managed to create your own cryptocurrency? Now is the time you issued it to the market. One of the things you must do is issue your tokens in an initial coin offering (ICO). ICOs have been used for crowd funding purposes. People pay fiat currency or Bitcoin in exchange for the tokens you will be offering. Due to the likelihood of misuse by scammers, ICOs are highly scrutinized.
The purpose of an ICO is to help increase the value of the token on offer and not to offer any equity in the company involved. The only way investors can recover their money is by selling their tokens at higher prices in the future. However, that’s only possible if the tokens appreciate in value.
If you are still grappling with the question of “how to create your own cryptocurrency?” don’t. Clearly, it is possible. The trick is in bringing it to the market so that people can buy into it and help grow its value. If you are up to the challenge, why not try it?