One ubiquitous word that you cannot avoid these days is Cryptocurrency. Every news article, blog, and trend in the finance industry is revolving around this concept. Do you know you can create your own cryptocurrency with little core knowledge of it. Even the top authorities and companies are obsessed with crypto and there is no doubt that it is literally changing the world around us significantly.
To keep pace with the evolution and advancements in this technology, companies must jump on the bandwagon without any further delay. Considering its growing popularity and importance in various sectors, many businesses have already come up with unique and innovative ideas. Everyone wants to embrace the best opportunities offered by cryptocurrency to this digital world, hence they are launching startups and their cryptocurrency.
However, before you take the first step toward create your own cryptocurrency online, you must be familiar with the process. How cryptocurrency works, what are the steps involved in creating crypto, how to make it, what are requisites, and more, you must have answers to all these common yet important questions.
Of course, the internet is full of information but most of the articles are contradictory or the facts are splattered all over the place. You need not worry as we are here to enlighten you about cryptocurrency, avoiding any jargon or complicated definitions. It is covered under the umbrella term of product engineering services and includes a wide range of steps followed meticulously by developers and the entire development team. So, let’s start with a brief introduction:
An Overview of Cryptocurrency
We are all acquainted with the concept of currency, which is a medium of exchange. It is a unit of storage that is accepted universally to buy goods and services. Talking about cryptocurrency, it is a digital form of currency that relies on encryption to confirm the transactions and generate new units. It performs all the functions of currency with the only difference of running outside of a centralized platform, such as a bank. There are no banknotes but coins which must not be confused with tokens.
- Coins can be used to buy tokens but tokens cannot buy coins.
- Coins need their own blockchain while tokens can operate on the existing blockchain.
- Unlike coins that can be used anywhere, tokens are limited to a specific project or community.
Most important point is that you need to develop a blockchain wallet to create a crypto coin.
Why Should Create Your Own Cryptocurrency?
how to launch your own cryptocurrency? After getting a fair idea about what cryptocurrency is, your next step is to determine why creating it your own is beneficial. If your business or startup requires blockchain, then the digital currency is a must to incentivise the nodes to contribute to processing power. According to many business analysts and authorities involved in cryptocurrency mining, there is a great future for the blockchain bitcoin wallet.
There is a long list of industries and markets that will be influenced by blockchain technology in the coming years, disrupting the status quo while working in favor of people who adopted cryptocurrency earlier. As this technology hasn’t completely arrived yet, there is still enough scope and time to join the league and seek early benefits.
Apart from this, there are a few questions you must answer to know if cryptocurrency is best for you. It includes whether online payment will add to your user base, does the majority of your revenue come from digital payments, how you can expand your business horizon with cryptocurrency, etc. If all the answers are positive, then it’s time for you to opt for crypto. There are various other benefits that you can avail of cryptocurrency, such as:
- A competitive advantage in the industry
- Effective and powerful marketing tools
- Assured transaction anonymity
- Security for funds
- Elimination of frauds and risks
- Reduced operating costs
- Immediate and faster transactions
- A greater pool of potential customers
Now that you have decided to opt to create your own altcoin, we’ll take you through its development process. So, embark with us on the journey:
Steps To Create Your Own Cryptocurrency
Step 1: Define Purpose and User-Case t0 Launch Your Own Cryptocurrency
Yes, you have decided to have your own cryptocurrency for your business but there must be a reason behind your decision. Right? You must have an aim and objective that you want to achieve and that has motivated you to opt for cryptocurrency.
Define that reason to have a clear purpose before entering the cryptocurrency market. Have an in-depth and detailed discussion with your team, evaluate all the aspects, and determine the clear goal. For example, Nano had a strong purpose, i.e., fast and feeless digital payment. Explain your reasons on a paper or prepare a presentation, stating all the factors.
Step 2: Take Care of Legal Implications
To start with any project or step into any domain, you have to maintain compliance with legal and statutory requirements. This stands true with cryptocurrency as well as the law is slowly but surely catching up with this technology too. With regular growth in the blockchain space, a few laws and regulations are introduced that you must abide by. Therefore, make sure that the cryptocurrency is prepared in accordance with the laws of internal regulations.
This will not only ensure that everything that you are doing is legal but also save you from unwelcome surprises throughout the process.
Step 3: Choose a Consensus Mechanism
If you thinking about to Launch Your Own Cryptocurrency, For smooth and disruption-free operations of blockchain, the nodes must agree on the transactions that are legitimate and should be added to the block. Consensus mechanisms are the protocols that consider the legitimacy of a particular transaction. You must choose the best and most suitable one from an array of options based on your business requirements. The consensus mechanism will also affect the choice of your blockchain platform. The most popular platforms are Waves (WAVES), IBM blockchain, Quorum, KICKICO, HydraChain, Nxt (NXT), IOTA, BitShares 2.0, Hyperledger Fabric, etc.
Step 4: Hire a Reliable Development Team
Not everyone has the expertise and knowledge to develop or create cryptocurrency themselves. Businesses need professional help for top-notchand authentic results, thereby you need to hire an experienced team of blockchain developers. To manage factors, such as documentation, development, marketing, and more, you need constant assistance from proficient.
Start with creating a detailed budget where you allocate financial resources to all the important aspects of the development process, such as legal counseling and consultancy, development, documentation & whitepaper, security audit, promotion, etc. Based on your budget, hire the team to take care of crypto development that converts your idea into a reality. As this whole concept deals with money, it must be seamless and sound with no vulnerabilities.
Step 5: Designing of Nodes
The next step which is a task of the development team and not you is creating nodes. To put in simple words, if blockchain is a wall, then nodes are bricks to make that wall. Based on the functionality and working of blockchain, nodes are designed. It is an internet-connected device that supports blockchain and performs several tasks, such as storing data, verifying and processing transactions, and more.
Crypto depends on nodes when it comes to security, efficiency, and support. Factors to be considered for nodes include, whether they will be hosted on-premise or cloud or both, operating systems, such as Windows, CentOS, Ubuntu, or Debian, will the permission be public, private or hybrid, and selecting hardware details. It won’t be possible to Launch Your Own Cryptocurrency without the best and high end hardwares in hand. So do some research and find whats the best in the market.
Step 6: Establishing the Internal Architecture
Internal Architecture is an important decision because once the cryptocurrency is launched, there is no going back. You cannot change the parameters once the platform is running and in case of any error or flaw, all the efforts will go in vain. Therefore, the team takes enough time to consider all the significant factors involved in architecture and takes decisions after reviewing important points, such as Key formats, Asset issuance, Access permission, Key management, Parameters, Address format, Block signature, and more. This is one of the major process of Launch Your Own Cryptocurrency in the market.
Step 7: API Integration
A reliable and experienced team of crypto developers will make sure to provide pre-built APIs for your blockchain platform. It is a crucial step to make sure that the new platform can easily integrate with the existing systems and applications without any disruption. Also, a top-notch cryptocurrency must have an excellent interface. The web, external database, and FTP servers must be the latest along with the timely upgrades of backend and frontend programming.
Summing It Up!
Once you have your own cryptocurrency, it is of no use if not promoted well among users. Even the best project or platform will not progress further or grow the network if people don’t know about it. So, use popular and common platforms to spread the word about your blockchain and cryptocurrency. The best places to start are social media portals, Twitter, Reddit, Telegram, Discord, etc.
There is no denying the fact that cryptocurrency is here to stay with a promising future in varied domains. With the help of professional developers, you can not only cut down your expenses but can seek future-proof solutions too. So, for a successful and ever-growing business, lay the foundation for cryptocurrency now. Connect with a smart and reliable technology partner and explore new business opportunities. So get started with Launch Your Own Cryptocurrency and help people who needs the most.
Also, here are some useful guides for you to learn to be web 3.0 blockchain developer and launch your own cryptocurrency.
- Become A Blockchain Developer
- Binance Academy
- Bitdegree
- Earn crypto while learning about crypto
- Guides on Cryptocurrency
- Blockchain By IBM
- Useweb3
Senior Writer, has been with Rottenpanda.com since 2017. With a bachelor’s degree in communications, Nick specializes in finding interesting topics, gathering details, checking facts, and making complex subjects easy to understand. In addition to writing articles, Nick loves traveling, pets and happily married to Lucy.
