Helpful Tips on How to Create Your Own Cryptocurrency

What Is Crypto?

By now, you have probably heard about the cryptocurrency craze. We can definitely say that these assets are urging big waves in the financial industry, also creating an impact in other areas of our lives. Although BTC was the first asset to receive mainstream adoption, the growth of digital assets is outpacing most other coins.

Pros

We have collected several advantages that you should consider.

Decentralization

The main argument in favor of cryptocurrencies is their underlying technology called the blockchain. It is actually what makes it trustworthy. In general, more decentralized cryptocurrencies are likely to be more stable and have a chance to survive (long enough for you to profit from mining) than more centralized and less distributed cryptocurrencies.

Fast and Unlimited Transactions

Fiat money transactions take a significant amount of time to be processed and settled. Your business will end up waiting days to receive money. With cryptocurrency, you can create an unlimited number of transactions and send them almost immediately to anyone with a crypto wallet anywhere in the world.

Low Transaction Fees

Banks and other financial institutions levy considerable transaction fees. This does not mean that you do not need to pay a commission for financial transfers. Having no third-party interference greatly reduces transaction costs and thus makes transaction costs negligible.

Accepted Internationally

The sender and the recipient of funds can be in different parts of the world and still exchange cryptocurrency. You can save money on currency conversion and these fees that always accompany international funds transactions.

Transparency and Anonymity

Thanks to the distributed nature of blockchains, every transaction is recorded. So, there is no possibility of fraud or third-party interference.

Cons

However, there are some drawbacks you should also consider. You should be aware of them.

They Are Not Widely Accepted

Coins are still only accepted by a very small group of online merchants. This makes it infeasible to completely rely on cryptocurrencies. There is also a possibility that governments might force merchants not to use digital coins to ensure that users’ transactions can be tracked.

High Volatility

The first thing you should know is that it is quite volatile. You should prepare for extreme volatility in this ecosystem. Just imagine that altcoins have a chance to surge up to 40–50% in a single day.

Transactions Are Non-Reversible

Mistakenly entering an incorrect cryptocurrency address may cost you money. There is no way to reverse a transaction. You may send a request for a refund, but if it is declined, be ready to say goodbye to your money.

How to Create a Cryptocurrency From Scratch?

Before jumping right into the development of your own crypto, there are some key business-related decisions you will want to keep in mind if you want your company to be more than just a fun product.

Define a Purpose for Your Digital Asset

If you are going to create a cryptocurrency, there should probably be a reason for its existence. Otherwise, what reason do people have to use it?

Consider the Legal Implications

As the blockchain space has grown, so has regulatory scrutiny of the space. You want to make sure that everything you are doing is legal throughout the entire process by consulting with a legal professional.

Define a Budget

Creating a digital asset for your firm is no easy task and will likely require some financial resources unless you can take care of things like building the coin, prepare docs, and marketing yourself.

Hire the Best Experts

Unless you are developing your crypto yourself, you are going to need strong developers to help bring your idea to life. This might be difficult since the demand for blockchain developers is through the roof while the supply of skilled blockchain developers remains low. Nevertheless, finding the right team is crucial since blockchains deal with peoples’ hard-earned money and need to be technically sound.

Hire External Auditors

Found the right developers to create a crypto coin? Again, since it is peoples’ money on the line, you will want to double and triple-check that your security is top-notch. This is where external security audits come in.

Promote Your Project

Even though making your cryptocurrency might seem impossible in itself, remember that after you make it, you need to promote it! You could have the best project in the world, but if no one knows about it, it will be hard to make progress and grow the network.

Nurture and Grow Your Community

After promoting your project, you need to make sure that you engage with and nurture your community. Answer their questions and provide updates on your progress. Many projects have community management teams for the sole purpose of growing a loyal base. Your early adopters will become your biggest fans and marketers, so do not neglect them and their needs.

How to Create a Cryptocurrency That Meets All Regulatory Compliance?

You can start a cryptocurrency that enforces any required compliance. First, you have to define what type of currency is required. You can choose a utility token or a security token. If you have decided to go with a security token, it has everything necessary to comply with the regulatory frameworks of the country. You can check the compliance enforced on security tokens by the security agency of the country. There are various types of security tokens. Each coin or crypto represents a share or security in the company or body. Asset-based tokens (ABT) are also a class of security tokens, but they are backed by real-world assets. Some common types of asset-backed tokens are: real estate asset tokens, art-backed asset tokens, agriculture yield backed asset tokens, mining repositories, or precious metals-backed asset class tokens.

Advantages of Making Crypto

As more and more firms and startups are already making their own coins and blockchain projects, in particular, taking over, one may wonder about the benefits of having their own asset. Is it necessary or worth it? If you are a company or a startup, here are five reasons why you should be looking forward to having your own asset.

They Have No Third-Party Seizure

Crypto assets are digital currencies, they cannot be monitored or controlled by any financial authorities or institutions such as central banks. This means that governments can not freeze someone’s wealth, and thus crypto users will have complete freedom to do anything they want with their money.

Branding Your Firm

Having your own coin definitely adds to your brand value. This is evident with the growing trends, as even the giants like Microsoft have developed their own cryptocurrency. Catching up with the trends, having your own virtual currency gives you that much-needed edge over your competitors as your customers begin to see you as a business organization that is futuristic and technologically advanced. No doubt, having your own digital currency also enhances the trust of your customers in your business.

Crowdfunding for a Project

Whether you are in need of small initial funding to give shape to your business ideas or you want to run a crowdfunding campaign to support a profit or non-profit project — there is nothing better than having your own cryptocurrency for raising funds. Typically, it requires a lot of paperwork, clearances, etc., to actually raise funds for a business venture.

Security and Savings

While cryptocurrencies are far more secure when it comes to making transactions, having a dedicated token exclusively for your firm saves your money as well. As keeping track of transactions is easy, you do not spend extra just for recording and tracking of transactions which you would otherwise. This adds up to the savings that you would make at the end of the year. Moreover, if your business relies on international operations, you save on unnecessary taxes and commissions each time you make a transfer.

The Currency of the Future

While looking to the far future of crypto is extremely exciting, new innovations are constantly entering the market, promising bigger and bolder uses of this financial technology.

Is It Worth It to Create Your Own Crypto?

Technical issues are the most challenging part of creating your own crypto asset, and we have a solution for you.

Need Help? Pay Experts!

Still, having trouble creating your own digital coin? In this case, it might be worth it to pay a firm to create crypto. You need to have extensive experience in blockchain programming to accomplish the goal. Only qualified specialists have the knowledge and expertise to walk you through this challenging task.

Why ICODA?

If you want to start a crypto business, it needs to be now. The competition in the market is growing, and soon, it will become saturated with no room for new entrants. So, start brainstorming ideas and come up with a cryptocurrency business plan. In addition, get in touch with ICODA if you are looking for a reliable solution for crypto development.

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ICODA Agency

ICODA Agency

Fundraising & Community for Crypto Projects