How to launch your own cryptocurrency and why do it?
Creating your own money is a truly radical idea that many corporate and individual clients are drawn to. In this article, we tried to get closer to understanding the process of creating a cryptocurrency, considered the benefits for a business, and also shared a few successful cases.
Ways to create your own cryptocurrency
Nowadays, virtually any company or individual can create and launch their cryptocurrency. There are many tutorials on the Internet on how to create your own cryptocurrency. However, even just studying them requires basic coding knowledge and skills, as well as a qualitative understanding of the blockchain process.
So, in the world of cryptocurrencies, there are crypto coins and crypto tokens. They differ significantly in terms of processes and creation costs.
Coin creation. The coin creation process can take as little as 5 minutes. You can just copy the Bitcoin code, add a new variable, or even change one of the values, and that’s it — you have a blockchain and a coin. However, you must be a decentralized technology professional or have someone willing to take on the role of a technology expert.
Therefore, this option may not be viable if you are looking for a way to quickly create your own cryptocurrency.
Another challenge is maintaining and promoting the coin. To do this, you will need to create all the blockchain logic yourself or hire a team of professionals to solve this problem. This will save time but require additional financial investments.
Token creation. This is a more realistic way to become a currency maker. You can create your own token based on a strong blockchain. For example, such as Ethereum. Then your token will operate on a secure network protected from fraudulent attacks.
Creating tokens is cheaper and requires less time because you use the existing decentralized architecture and implemented consensus mechanisms.
In the table below, you can see the pros and cons of creating coins or tokens:
— New blockchain creation required.
— Deep blockchain knowledge and coding skills required.
— Blockchain development requires additional investment.
— Can be built on existing and reliable blockchains.
— Relatively easy to create with open-source code.
— Creation of tokens is easier, faster, and cheaper.
Now, let’s talk about the steps one needs to take to create a cryptocurrency:
1. Define your idea. The creation of a cryptocurrency, like the creation of a real business, requires a strategic plan. Determine what problem you want to solve with your decentralized application and what audience it will target. For example, you want to remove a bank or other intermediary during transactions or create a healthcare solution that will change peoples’ lives.
This is an important stage that will help to get customers interested in your token during the ICO / STO promotion.
2. Hire an experienced development team that understands the world of blockchain and cryptocurrencies. Although their services will not be cheap, this step will help you avoid unnecessary expenses in the future.
3. Create rules for smart contracts as they have a significant impact on your project. Smart contracts are similar to traditional contracts, except for the fact that they are digital, operate on the blockchain, have predefined rules, cannot be changed, and are automatically executed. You can create rules that reflect the main idea of the ICO / STO.
4. Hire an external audit firm. The hiring of an external audit company will ensure the legitimacy of your project. The fact is that the credibility of ICO / STO has diminished significantly as many of the initial coin offerings turned out to be fraudulent. Investors are picky about the projects in which they invest.
5. Create a white paper. It will help investors get a positive first impression of your cryptocurrency. A well-written white paper will help you cross the invisible bridge between a failure and a successful ICO / STO.
We shared what investors should pay attention to when choosing a cryptocurrency in this article.
6. ICO Promotion. Social media, press, guest blogs, email marketing, and general promotion are all great places to start. You can use all the traditional marketing tools but choose wisely as you need to be clear about what gives your cryptocurrency value.
7. Build a strong community and expand it. All developed cryptocurrencies have active and strong communities — Bitcoin, Ethereum, Ripple, NEO, etc. Choose suitable channels for communication with community members, try to timely share news about the development of the project and answer all the questions. You can hire a dedicated team to manage your community 24/7.
What are the benefits for a business?
The biggest advantage is financial flexibility. No third party can track and interfere with any of your financial transactions. You can develop and customize your cryptocurrency according to the requirements of your business.
Blockchain remains one of the leading technologies on the market. Businesses appreciate the advantages of decentralized technologies such as security, transparency, anonymity, and fast transactions. Today, many companies lean towards creating a cryptocurrency and using it in their day-to-day business operations.
For example, companies like American Express, JP Morgan, and Santander are already using the Ripple payment system and the XRP cryptocurrency.
If your cryptocurrency becomes more public and proves reliable, then the Cratos platform will provide an opportunity to publish it on our platform so that other users can buy, sell or store it.
- Satoshi Nakamoto, the creator of Bitcoin, is the most mysterious person in the cryptocurrency industry. Indeed, not only does no one know who it is — if it is one person or a group of developers, but the very existence of this legendary figure has often been questioned.
- Vitalik Buterin, the founder of Ethereum, the second-largest digital currency in the world in terms of capitalization. Blockchain appeared in his life in 2011, and by 2013 he had already realized the shortcomings of Bitcoin. This gave him the idea to create his own unique cryptocurrency platform, and by 2014 he had funded and launched his Ethereum project through an online sale.
- Charlie Lee, creator of Litecoin, the third cryptocurrency ever created. A talented programmer and scientist from Japan, Lee worked as a developer at Google before creating Litecoin. He learned about blockchain in 2011 by reading an article on bitcoin. He became deeply interested in the innovative technology and immediately bought one bitcoin for 30 dollars. That same year, in October 2011, Lee created an open-source cryptographic protocol Litecoin, one of the first by-products of Altcoin, and also got a job at the largest exchange, Coinbase. In the summer of 2017, Charlie Lee left Coinbase and focused entirely on developing Litecoin.
- David A. Marcus, director of Libra and former president of PayPal. Libra is a new cryptocurrency developed by Facebook and other companies. Libra is arguably one of the most controversial blockchain projects out there, and opinions are divided. Some view the Facebook initiative as a threat to the anonymity and decentralization of the blockchain, while others see it as a long-awaited breakthrough for the technology.
Popular resources for creating digital currency: