Cryptocurrency has taken the whole world by storm. So, it’s obvious a lot of people are trying to get themselves involved in the crypto world. The more blockchain technology is advancing – the more and more people are thinking to create a cryptocurrency. Yes, planning to create a new cryptocurrency is a good way to get involved in the crypto world.
There are lots of valid motivations for creating a new cryptocurrency. Some may want to take on the challenge of creating new techs, and some just want to create new money that can bring about changes.
One thing for sure, creating crypto is not an easy task. It’s not just about creating the money firsthand. You have to consider the technical and business aspect of cryptocurrency into consideration. Before getting involved in the blockchain world, first, try to understand the landscape. And if you are here for a generalized concept of starting your project, we are here to help you.
Now, the question is – is it possible to create a cryptocurrency and redeem success? Well, it depends on you and how you handle the technical and business aspects. That’s why we shall guide you with the basics and aspects of cryptocurrency. After that, you shall decide if it is possible for you or not.
What is Cryptocurrency – All About Cryptocurrency?
Almost 11 years ago, the world found a new form of money. Technically, we call them cryptocurrency. Slowly but maturely cryptocurrency became a phenomenon around the world. However, cryptocurrency is often misrepresented. Many people consider it to be a new form of money. On the other hand, some people raise questions about the whole context.
In small detail, cryptocurrency is a digital currency. These types of money don’t have any banknotes. But they have coins and this is where the confusion starts. A lot of people misread tokens as coins. Even though cryptocurrency is just a form of digital currency – the concept is complex. Before breaking the complexity of cryptocurrency – first, let’s understand what it is.
Cryptocurrency relies on encryption for creating new units and confirming transactions. However, cryptocurrency is not like traditional bank currencies. Traditional banknotes are often controlled by a centralized authority. But cryptocurrency is not limited to just a central authority.
A lot of cryptocurrencies are related to blockchain tech. So, they rely on encryption for transactions and creating new units. Blockchain tech is developed for peer to peer or P2P network. And blockchain technology has data blocks to ensure safety. Thus no central government or authority can track down or regulate cryptocurrency.
In a blockchain, data blocks will chronically store data. After that, they will adhere to create a protocol for inter-node communication and validating new blocks. So, if any hacker wants to get access to all the information – he needs to alter every block in the chain. And such a feat is quite impossible.
Among all the cryptocurrencies, bitcoin was the first to establish a reputation for being the most successful cryptocurrency. Currently, there are more than 1500 types of cryptocurrency around the digital world. Yet we are waiting for new and popular cryptos.
So, how does a cryptocurrency work?
Just like we said, cryptocurrency is an integral part of blockchain technology. Well, not every cryptocurrency is not integrated with blockchain. However, most of them are. Blockchain first started as a real tech solution and its development in 2016. And it’s a cheap and efficient way to store your data.
What’s the main concept?
The concept is rather simple – rather than storing data in one place, blockchain keeps records in various servers around the world. Blockchain mainly uses distributed ledger technology (DLT). Thus, anyone on the P2P network can gain access to the data. As the information is not stored in just one address, bad actors cannot do many things. DLT is a new parameter for sharing data or information.
Blockchain network is secured in many ways. Every user in the network must accept a new block to attach it to the network. And blockchain does have some important security measures to work for it. Some of the most popular security measures are PoW (Proof of Work), PoA (Proof of Authority), PoS (Proof of Stake), and many more.
So, a blockchain participant creates a transaction first. When he makes the transaction, the data is broadcasted to the P2P network nodes. And a network of the nodes tries to allocate the transaction. People allocating the transactions are known as miners. When they allocate and validate any transaction, miners receive rewards. Finally, a new transaction creates a new block. The more blocks come, the chain grows bigger.
Users on the network complete a transaction via sharing cryptocurrency from one wallet address to another. Some people may want to exchange it for fiat currency or another type of cryptocurrency. Funny thing is, anyone on the network can view the transactions. However, they cannot define who is responsible for the transactions. User identity is completely anonymous in the blockchain network thanks to the encryption mechanism.
Understanding the Difference between Crypto Coins and Crypto Tokens
Earlier, we mentioned, people often misread crypto coins over crypto tokens. And before thinking about creating a cryptocurrency, you need to know the difference. Cryptocurrency has two major sub-categories. Both of them are cryptocurrencies. But there are slight differences between the two. For your own business needs, one must learn the differences clearly.
To be clear – a token operates on an existing blockchain infrastructure. Infrastructures like Ethereum, NEO helps validate token transactions and also secure them. As tokens can operate on existing blockchain infrastructure, it’s easier to create a token. Tokens are best suited for smart contracts. Anyone can create a token from scratch. All they need is to underly on blockchain infrastructures like Ethereum and NEO. Tokens are primarily used in STO or crowd sales.
Crypto coins, on the other hand, are a completely different matter altogether. You’ll need to create a completely new blockchain network for your coin. Obviously, creating coins will be harder and expensive. Just as you see, people use tokens for fundraising purposes. So, a lot of companies ask how to create a cryptocurrency for this confusion.
So, what are the major differences?
Now, we are going to point out the major differences between the coins below:
- Coins need a new and separate blockchain network. But tokens can operate on existing blockchain networks.
- You can purchase tokens with coins. However, you cannot do the opposite.
- Coins can be used anywhere. On the other hand, tokens are for limited projects.
So, our bottom line would be, if you want to create a coin – you have to think about building a new blockchain network. And when you are thinking about creating new crypto, you have to create a coin. Just making a token is not going to do you any help at all. Anyway, there are many other considerations you have to worry about before starting with a project like creating a cryptocurrency.
What are the Risks One Have to Consider in Order to Create a Cryptocurrency?
There are a lot of advantages and disadvantages of cryptocurrency. Since you want to start creating a new coin of your own, things are going to get complicated. Just like we said, to create a new cryptocurrency, you’ll need a separate blockchain network. And when you want to create a new token, just use another existing blockchain platform.
When you are taking the initiative for creating a cryptocurrency, you need to think of two things. First, considerations and second ones will be the plan. Depending on the considerations, you will devise a plan to create a cryptocurrency.
The crypto world is indeed very complicated. Surely, there are lots of things you need to worry about, and sometimes sorting out the important ones can help you devise a foolproof plan. So, here are some considerations you should make before starting your plans for creating a cryptocurrency.
Designing your Own Blockchain Network to create a cryptocurrency
The very first problem of creating a crypto coin is establishing the blockchain network. Such a feat is quite time-consuming, of course. Hiring a professional can be a great way to do the task. However, finding a good developer and programmer will be hard. Because blockchain technology has high-demand in the digital world. For this reason, finding a good coder will be hard.
If you are looking for a good programmer team to develop your blockchain network, you can seek help from us. Cryptocode has the experience and skills to create a reliable blockchain network. We have experience on a global scale and can help you find the best blockchain solutions available.
Anyway, some people would like to make a blockchain network on their own. This can always save you the cost of hiring a professional programmer. If you have programming skills, you can do it. If you choose HTTP, then just look for a powerful coding language like python. Just to tell you, fundamental blockchain codes are pretty straightforward. All you need to do is keep your attention on the work.
However, taking the security measurements and implementing network standard is the hardest part. Just creating the network won’t do any good for you. Ensuring security is another important aspect of blockchain.
What Steps should you follow to create a cryptocurrency?
To create a blockchain network, you have to follow some simple steps:
- First, create two blockchain classes. One for storing blockchain and the other one for transactions.
- After that, you’ll need to create a method for creating new blocks on the network.
- Then set another method for creating individual blocks.
- Now, ensure a system for transactions, proof of work, or miners.
Even with limited programming skills – one can create a blockchain network. So, why look for an experienced blockchain development company like us? It’s because making the network widespread is going to be a great challenge.
Security Risks
From the very start, blockchain networks have been vulnerable to bad actors. Because a huge amount of capital is being circulated in the network. So, they always try to find a blank spot to hit. That’s why cyber security is another consideration for anyone thinking of creating a new cryptocurrency.
A lot of popular cryptocurrencies have faced security problems in the past. So, when you are trying to make a new coin – you should also think about security too. Mainly, a blockchain network may face problems on different levels. The problem comes when they attack the network transactions and wallet addresses.
It would have been better if there were any legal laws to protect user information. Well, a lot of central authority is trying to come up with security measurement online. But that also depends on the region and state you are working on.
There is no limitation or law that you can’t create a new cryptocurrency. But for your blockchain network, you have to think about the security measures to protect user information. To make that possible, you can rely on different wallets from a reputed blockchain development company like us.
Cryptocode is developing safe and secure blockchain software and wallets to make your network widespread. You can consult us and share your plans. We can help you devise the best security strategies available.
Marketing Problems
The biggest challenge is always going to be marketing. A coin becoming popular means, a lot of users are using your coin. That’s when you will need a lot of miners, verifying, or placing transactions. If the coin is not widespread, creating a crypto coin is nothing just a coding exercise for you.
Marketing strategies can help you make the cryptocurrency more visible. Just becoming a new version of bitcoin is not going to help. Rather try to distinguish your coin from other coins.
You can always go for any consultancy service from us. We can help you with devising the best marketing strategies.
Confusing and Unclear Market – An Unstable Market
The cryptocurrency market is often confusing. Unclear regulations make the market unstable and confusing. For instance, cryptocurrency is becoming a good solution for countries with lower currencies. In some parts of the world, the authority doesn’t even care about the existence of cryptocurrency.
US government is trying to enforce laws on creating and distributing cryptocurrencies. Well, they are trying to give cryptocurrency a stable position in the currency world. However, the sole purpose of cryptocurrency is to create a free transactional world.
Such unclear regulations on cryptocurrency is another huge problem for cryptocurrency. The cryptocurrency world is very creative and unique. Techs are changing all the time, and you have to consider that into your idea. Keeping optimization options for your plan is obvious.
How to Create a Cryptocurrency: Starting with A Plan
Before asking how to create a new cryptocurrency – you need to go through the whole process. Because creating a coin is rather easy. You are copying the code of the coin and altering some codes. And if that’s your goal, it’s nothing but a simple new coding exercise. So, keeping the technical process aside, we should shed some light on the whole process here.
Focus mainly on your IDEA
Creating a new cryptocurrency is always a fun idea. On the contrary, without a strategic process, you cannot make the most fun out of it. So, it’s important to define your idea and try to create a strategy. There are a lot of ideas on how to create a cryptocurrency. But you need to understand everything through. Once you start, there is no going back.
That’s why you have to make strategic movements. You can always ask for help from blockchain and cryptocurrency development companies. Cryptocode have a good reputation for helping people with making the best strategies. Because we are always researching the digital market.
You can research the market and understand the popular coins available. Din;t just think about the money. Focus on your idea for once. Even an impressive idea is simply an idea and it’s arranging inside your head.
Hire a Professional Development Team
You just decide on how to create a cryptocurrency. And it’s great to hire a professional development agency that specializes in the blockchain and cryptocurrency landscape. Hiring a professional team is also a tough task to handle. Because everyone is claiming to be the very best. However, you need to connect with them to understand the facilities they have to offer.
At Cryptcode, we have a professional team to back you up. We have experience on a global scale and continuously working with blockchain-related projects.
All you need to do is think about your purpose in cryptocurrency. On the other hand, the cryptocurrency development company can help you shape the goal. So, it’s crucial for you to ask for help from companies like us. Because if you want to avoid problems later in the future, just seek help from professionals.
Creating a smart contract
Often people regard smart contracts as a vulnerable spot for cryptocurrency. But it’s one of the most vital elements for creating smart contracts. A smart contract is more like a traditional contract. Rather it’s a digital version of the traditional contract. Once you create a smart contract, it will run automatically on the blockchain network. Once you use it on the blockchain network, you cannot change it.
Inside a smart contract, rules and regulations are written perfectly. Most of these rules are transactional rules. Smart contracts will run automatically and there won’t be any third party involved in the matter. So, smart contracts are just simple codes. Every user on the blockchain network trusts a smart contract.
So, making a good smart contract is very important. Creating a good smart contract becomes tough to handle. Consulting a good ICO development company like us can help you with smart contracts. Our programmers are experienced in making a proper strategy for your smart contracts.
Secure your smart contract with a professional audit
Just like we said, in your blockchain network, people will trust the code. Before that, people won’t be able to trust the code without using it. Anyway, creating a professional audit can help you make people trust you with the codes.
Saying professional audits sound unfamiliar. Let’s just introduce audits as ICO tokens. ICO whitepaper can always legitimate every cryptocurrency project. Not to mention, it can help you make the coin widespread.
Writing Whitepaper
Writing a good whitepaper is another crucial part of the project. Every whitepaper will come in a PDF format. Because you need to make the whitepaper accessible easily. There are two types of a whitepaper – a regular one and a lite one. Regular white papers are 80 to 100 pages long. On the other hand, 8 to 10 pages are for a lite paper.
The developer company needs to create a whitepaper in multiple languages. But make sure the contract has good grammar and language tone. Now what type of elements make a smart contract trustworthy? Here are some tips below:
Just like we said, in your blockchain network, people will trust the code. Before that, people won’t be able to trust the code without using it. Anyway, creating a professional audit can help you make people trust you with the codes.
Writing a good whitepaper is another crucial part of the project. Every whitepaper will come in a PDF format. Because you need to make the whitepaper accessible easily. There are two types of a whitepaper – a regular one and a lite one. Regular white papers are 80 to 100 pages long. On the other hand, 8 to 10 pages are for a lite paper.
The developer company needs to create a whitepaper in multiple languages. But make sure the contract has good grammar and language tone. Here are some tips on creating whitepaper:
- Define your idea
- Giving a good solution to your idea
- What is the purpose of your ICO funding
- Token release time and when can it be traded and listed on an exchange
- When will the project complete
- Describing your team, the qualifications of your company, etc.
Marketing Campaigns
Marketing campaigns can help you flourish the cryptocurrency in the right way. Boosting social media campaigns can help you reach users and a targeted audience. Researching the crypto market is obviously a big problem. Because without understanding the market, you cannot devise a strategy. Asking for help from an experienced developer team will help you to understand the intense market.
How you will devise the marketing strategy is not the main focus here. Rather, it’s about how to make your marketing bet. Well, here are some ways you can do that without any problem.
Sponsored Articles
Facebook and Google Ads can help you reach the targeted audience. Well, social media ads are great for communicating with potential crypto users. However, Google ads are the best way to start marketing. But the problem is both this platform have banned cryptocurrency advertisement. So, looking for other professional platforms can help you with implying your marketing strategy.
Social Media Marketing
Social media is best for connecting with people. Yes, here you don’t have any idea about the people interested in cryptocurrency. But you can filter out the potential users by social media campaigns. How you filter out the users is the plan you will imply. So, social media marketing is another way to widespread your cryptocurrency.
Blogging
Blogging is best for growing your community. Yes, blogging can not only help you gain potential users but also help you make random people your customer. Giving a gest of your knowledge over the area can always help you improve your brand image.
Email Marketing
Email marketing is effective from the beginning of your project. Collecting addresses of your supporters and keeping them updated via email is also a priority for you. Email marketing comes with different methods and strategies and you have to stay creative about your strategies.
Make your community strong
While learning how to create a cryptocurrency, growing your community will help a lot. Seeking a community platform where you can ask and answer questions will be best. Almost every popular blockchain has its own community and fanbase.
Using forums is the most reliable solution. Community trust is crucial to growing your cryptocurrency. And if you have trouble with managing all these problems, you can always seek assistance from professional ICO development companies.
How to create a Cryptocurrency – Tokens
Creating a crypto token is much easier than creating a coin. Coins are just like money, and tokens are not. You can create a token in any existing blockchain network. Unlike coins, you don’t have to create a separate blockchain network for it. There are many popular blockchain networks where you can distribute your tokens. Blockchain networks like Ethereum, EOS, NEO offers the best token creating blockchain networks out there.
Tokens do have some characteristics with major limitations. Still, they are a form of cryptocurrency and can benefit one in many ways. So, what are these characteristics anyway?
- Tokens have limited purchase value.
- It can play the role of currency in a closed-ecosystem.
- Can act as a share for any shareholder.
- Tokens can indicate any numeric value.
- Can act as a compensation form for any actions.
- Tokens are often used as a reward tool.
Well, there are three types of tokens available in the cryptocurrency world. What type of token you will create is another big concern. The three types of tokens are:
- Utility token: Mainly used in ICO projects
- Equity Token: A digital token to purchase any service or goods issued by the token development company.
- Asset-backed token: Can be used for claiming real-world assets or goods.
So, how to create a token? To know that, you have to go through a set of considerations.
- First, know where you can create a token?
- How crypto tokens work?
- What is the process to create a token?
- How to make your tokens acceptable?
Technical Aspect: How a token work?
Just like we said, crypto tokens don’t need any separate blockchain network. They can work on the existing blockchain network with ease. Mainly, crypto tokens work on an existing blockchain network and act as a medium for decentralized smart contracts and software. Often, tokens can facilitate transactions.
Tokens are created, sold, distributed, and circulated via ICO projects. Mainly, tokens act as the assurance of good project development.
Where to create a cryptocurrency – token?
There is some popular blockchain network that hosts crypto tokens. So, anyone can easily create a token with minimum coding skills. Also, they can use related web applications to widespread their tokens. Cryptocode is mainly trying to facilitate the process. We create software and web applications to make your token management easier.
However, if you are looking for an existing blockchain network to host your token, here are some popular options.
Ethereum
Perhaps Ethereum is the most popular place to issue any new token. Mainly, the Ethereum developer team has developed a PoW (Proof of Work) algorithm called Ethash. In short, Ethereum is a hybrid blockchain network of Proof of Stake (PoS) and Proof of Work (PoW).
Ethereum has a huge audience in the blockchain network. And that is a great thing for issuing your token. Not just that, the network comes with tons of wallet options. You can even get access to a hardware wallet from Ethereum. That’s why this is a sweet tooth for a lot of token issuers.
Nxt
You can say Nxt is the first Proof of Stake blockchain network. Nxt became a pioneer in transparency, disintermediation, immutability, and many other aspects of revolutionary technology. But that’s not the only thing that makes Nxt great. It has efficiency in smart transactions. Mainly, business owners and people looking for power and electricity use this second-generation blockchain network.
EOS
EOS is the best platform for business fundraising platforms. This blockchain network uses the asynchronous smart contract algorithm. You can use any programming language and the asynchronous smart contract will compile them into WebAssembly.
EOS platform is best suited for creating tokens with smart contracts. Not to mention, it can create a large number of transactions within seconds. This is a great platform for scaling and fees are absent in the platform.
NEO
NEO is a blockchain network where you can utilize high-class programming skills. To create your token, you can use just about any high-class programming language, and also the network has HTTP API for interaction.
Aside from these blockchain networks, there are other blockchains such as NEM, Waves, Steller, etc.
Final Verdict
So, the main confusion is always going to be – how to create a cryptocurrency? Yes, there are complex terms that you need to have specific ideas about. Most of the time, asking for help from a professional blockchain development company is the best way to do so.
You can ask for help from Cryptocode if you want. We always like to help people connect with the digital world and claim a good position. If you want to create new crypto that’s fine. We can always help you with the basics and strategic mechanisms. And later on, you can even use our applications to widespread your cryptocurrency.
