Today only a few people have doubts about the prospects of digital currency, and even children know about Bitcoin. People are eager to earn it, and some crypto enthusiasts are thinking about creating their own cryptocurrency. Nothing is impossible, although you will have to try your best. Let’s find out how to create your own cryptocurrency and make money on it!
Key Features of Digital Currency to Know
Digital currency is electronic money (or coin), which does not have a centralized emission center and paper equivalent, so it does not depend on the decisions of government and regulatory authorities.
Each unit has its own digital code, reliably protected by cryptographic algorithms. Thus, the main features of cryptocurrency include the following.
- Decentralization. No one can influence the value of coins, and their price is determined exclusively by trading on specialized exchanges. Most often, members of the community make decisions about the fate of a particular crypto.
- Non-attachment of assets to any account, due to which they cannot be stolen or blocked.
- Free from devaluation or inflation. The developers determine and announce the number of units in advance, which excludes their depreciation and guarantees growth in the long term.
- Reliability of code protection using constantly improving encryption methods.
- Anonymity and reliability of transactions. Blockchain technology reveals only some data (wallet number and transfer amount) to a third party and does not allow fraudsters to change a transaction. Also, there is no need to provide your personal data, as in a traditional bank.
- Transactions are made between counterparties directly, without a third party, and accordingly, without commissions for intermediation.
To learn how to create your own cryptocurrency, it is necessary to understand its development and further functioning features clearly. Otherwise, you will waste time.
Learn How to Create Your Own Cryptocurrency: Determine Your Goals
Basically, any project is created to bring a profit in the end. Therefore, before making your own cryptocurrency, you need to weigh the pros and cons carefully. Most often, the following reasons motivate specialists to launch their own blockchain:
- the desire to list your cryptocurrency on the exchange and make a profit on trade transactions;
- the need to develop an internal payment system for customers on their own server;
- introduction of new Internet services for businesses and individuals;
- personal interest in crypto technologies, programming, and everything else.
In addition, the new coin should carry some improvements in relation to other tokens or be based on a fundamentally new blockchain offering a completely unique product. For example, in 2016, the founder of Ethereum, Vitalik Buterin, once said:
When I came up with Ethereum, my first thought was, ‘OK, this thing is too good to be true, and I’m going to have five professional cryptographers raining down on me and telling me how stupid I am for not seeing a bunch of very obvious flaws.’
Today, ETH is the second-largest cryptocurrency after Bitcoin and has a current market cap of over $400 billion.
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How long does it take to create your own cryptocurrency? Well, taking into account the duration of all processes (the development of a unique code takes at least a year plus the time to promote the project), it is necessary to foresee the development of the interests of potential users.
How Long Does It Take to Create Your Own Cryptocurrency: Step-by-Step Guide
Now let’s dwell on how to create your own cryptocurrency token from scratch. One should note that the creator must understand programming as a newbie will not cope with this difficult task. The creator will have to purchase modern hardware, have a high-speed Internet connection, and invest time and energy in development.
It is almost impossible to carry out all the processes on your own. As a rule, the creator should build a team of professionals. At the same time, the attracted specialists should be like-minded people who share their ideas.
You can attract additional money from investors by launching an ICO. Still, it will be necessary to convince them that the idea of creating your own cryptocurrency is promising and supported by technological innovations that open up new opportunities. Otherwise, investors will not be interested in your future project.
Now, let’s consider in detail how to create your own cryptocurrency token.
Find a suitable open-source code. Some coins were created on their unique code, for example, Ethereum or Monero, but you need to be a top-level programmer to write your own code. Therefore, most modern coins were created as forks from existing currencies. For example, Litecoin is a fork of Bitcoin, and Dogecoin, in turn, is a fork of Litecoin.
Examine the downloaded code and install the corresponding software on your PC. You should pay attention to the availability of the necessary libraries and the software used. So, when working on Linux, it is advisable to use the db48, boost, qt4-mac programs.
The downloaded code is actually a ready-made digital currency that needs to be slightly corrected. You need to choose a catchy, easy-to-remember name for your coin and change all old names in the source code to new ones using special programs. Be sure to add a unique name to the coin-gt.pro file, for example, hardcoin-gt.pro. The first phase is now complete.
The second phase is a purely technical work aimed at configuring the network ports to carry out transactions. Change unused ports (these can be RPC or P2P ports) in the corresponding lines of the source code.
Now a new coin has appeared in the crypto world. The developer should think about its generation. Each crypto is stored in blocks with a limited volume, so you need to determine the main parameters of your crypto. Manually write the following data in the src/main.cpp file: how many coins will be in one block (line 831), generation time in seconds (line 837), frequency of mining difficulty (line 836), how many coins (line 43), and blocks (line 550 ) can be issued per day. Set the value of the public key on line 280.
After completing the source code compilation, we have a GUI with a console app for the server and client. The src/qt/res folder contains icons that you need to change to your own ones. You can create them yourself or hire an experienced designer.
Once you learn how to create your own cryptocurrency, just focus on marketing issues. To begin with, you should list your coin on the exchange. To do this, you need to contact support and find out the requirements of exchange platforms.
How to Create Your Own Cryptocurrency Token: New Crypto Promotion
Having found out how to create your own cryptocurrency, you should consider an equally important issue — its success. Many crypto projects have failed because their creators did not care about further marketing strategies. Therefore, experts advise paying attention to the following steps.
- Develop a thoughtful long-term business plan. Investors should understand how to use the coins and how they can bring them profit.
- Conduct development prospects analysis. The project should improve some stats of competitors or offer unique opportunities. It is worth focusing on this since the demand for new technologies is very high, and any market advantage can significantly increase the project’s price.
- Calculate potential risks. Don’t forget about the main problem of cryptocurrencies — their high volatility, which is a direct consequence of the lack of regulation and a single emission center.
Thus, you need a team of specialists to develop and implement a successful market strategy. You should have a detailed plan with all stages and steps and regularly conduct promotion activities. Only this will help maintain the attention of investors and increase popularity.
Despite the controversy, many countries have already recognized cryptocurrencies as official payment instruments. Blockchain technology is creating serious competition for the traditional banking sector.
How long does it take to create your own cryptocurrency? What do you guys think? Feel free to share your knowledge in the comments below!