Helpful Tips on How to Create Your Own Cryptocurrency
So you have heard of digital coins that have taken the world by storm. You are looking to get involved somehow. What if you created a token or an altcoin?
If you know how to make a coin, your radical idea can become a reality.
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.
Before diving into more complex details and defining how to launch your own coin, it is necessary to find out everything about it.
A cryptocurrency is a type of digital coin based on code. These coins operate outside of traditional banking and government segments.
Cryptocurrencies use cryptography to secure transactions and regulate the creation of additional units. Bitcoin, the original and by far most well-known cryptocurrency, was launched in January 2009. Today there are over 10 000 virtual assets available online.
They differ significantly from traditional currencies as they use blockchain tech to create a distributed ledger. Nonetheless, you can still exchange them like any other coin, trade on platforms, and track price fluctuations.
Cryptocurrencies fall under the banner of digital currencies, alternative currencies, and virtual currencies. They were initially designed to provide an alternative payment method for online transactions. However, cryptocurrencies are not yet widely accepted for all transactions as some consider them too volatile to be suitable as a means of payment. As a decentralized currency, it was developed to be free from financial authorities and their control or influence, and the whole industry is instead monitored by peer-to-peer internet protocol.
If you want to put tokens or coins in a real-life context, think about tokens as your Frequent Flyer Miles while coins are actual money: you can use both to get an airplane ticket, but with the miles, your choice will be limited to the air company that issued them, while with the money you can take your company anywhere you want.
The bottom line is that you have to build an ecosystem if you plan to roll out a crypto coin.
We have collected several advantages that you should consider.
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.
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.
Even if the wallet address was publicized, a new wallet address could be easily generated. This greatly increases privacy when compared to traditional currency systems, where third parties potentially have access to personal financial data.
All of the above should make companies think more seriously about how to make a cryptocurrency.
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.
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.
You should keep in mind that it is quite risky as you never know whether it will be a profitable investment or not.
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.
Enthusiasts will tell you it is the future of money, but investing in the notoriously volatile virtual currency can be a rollercoaster. Like any investment, there is a risk of loss when you invest your funds in crypto assets.
These pros and cons should be taken into consideration before you start creating a coin that will facilitate your company. It is necessary to find goals for making this virtual currency.
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?
It should have strongly defined purposes, for example, quick and feeless digital payments.
Once you have a purpose for your coin, be sure to explain it on white paper, along with other aspects of your project.
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.
Press releases, social media — especially channels popular with the crypto community like Twitter, Telegram, Reddit, Discord, and blogs are good places to start.
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.
The functionality of the currency can be defined and you can develop it to cater to specific business activities. Moreover, if you have a project online which involves global transfers, having your own coin can save you a lot of hassles and unnecessary expenditures. Also, it helps you reach out to customers irrespective of their geographical location.
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.
With your own token, you are able to provide your customers with more options in terms of payments, and as assets are getting adopted worldwide, it will definitely help your business broaden its appeal and reach out to a diverse range of consumers.
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.
Developing your own token, you can easily reach out to more and more investors who would be interested in your project. Most importantly, you do not have to share the ownership of your product with your investors.
By launching an ICO, you can raise funds for your startup or a particular business venture. Also, ICOs are one of the smartest and easiest ways to help you kickstart your business which is still in the ideation stage for lack of adequate funding.
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.
Banks charge you a certain percentage for every international transaction you make. If you choose to send or receive money with your own cyber coin, you do not have to pay that sum to any financial institution. Sounds great, right?
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.
As we are still at the very early stages of mass adoption, the whole cryptocurrency industry is yet to be accepted by the majority. But digital assets are bound to be part of our future in the long run. Thanks to the blockchain.
The future of blockchain technology will continue to drive the development of cryptocurrency services.
We are pretty sure that we are on the cusp of a new financial future. As the popularity of cryptocurrency trading continues to grow, the demand for crypto exchanges will surge.
The advantages one has with cryptocurrencies are already making it a preferred choice. While fiat currencies are tracked and controlled by financial authorities, more investors and customers are getting interested in projects that allow them to participate in business activities that are not controlled by any financial authority.
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.
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.
At ICODA, we believe that blockchain and digital assets are able to change the world.
ICODA was made to help crypto projects unlock their potential.
We are a team of experts who accompany your firm and deliver crypto leads at all stages: cryptocurrency creation, blockchain web platform development, promotion, and listing.
Our experience allows us to guarantee that your company will get high-professional comprehensive assistance and advancement.
We helped to make and boost more than 50 crypto-related businesses. Your project could be the next.
The ICODA team strives to give you the best customer experience. So, drop us a line, and we are always here to help you and assist your business at all stages.