So, you want to create your own cryptocurrency? Well, no matter how serious you are, it’s actually not as hard as many people think considering all of the options available. Discerning the underlying components of a cryptocurrency allows you to further explore the various options available when diving into this space. Here’s everything you need to know in order to create your own cryptocurrency.
It’s All About Blockchain
When it comes to creating a cryptocurrency, you need to understand how the main technology behind it works. Without going into too much detail, blockchain is a secure network that keeps a record of each and every transaction made on its platform. Creating your own blockchain network is one of the ways you can create your own cryptocurrency, but there are a few issues that arise with this. First of all, it requires extensive coding and developing knowledge which you must have a basic understanding of to complete. Of course, there are online tutorials and step by step guides which can help you code and effectively create your own blockchain network for a cryptocurrency, but there’s also another way to handle this.
Instead of going through the entire process of coding your own blockchain network from scratch, you can always just use an existing platform’s code and tweak a few things to make it your own. That’s right, as seemingly corrupt as this sounds, all you really need to do is find some publicly available code on Github and modify it accordingly to make your own blockchain network. Once you’ve figured out how to approach developing your own blockchain network, the next step is to decide what kind of cryptocurrency you’re launching: a coin or a token?
Launching a Token or Coin
A major misconception to those who may not be well-versed with the jargon of cryptocurrency is that a “coin” and “token” are basically the same thing — it turns out they’re not! Although both are considered cryptocurrencies, coins and tokens are actually different depending on the kind of blockchain network it uses. For example, if you decide to code and create your own blockchain network from scratch, then you can launch as a coin. Alternatively, if you build our blockchain system based off of an existing network like Ethereum, you are launching a token. Most new coins simply fork Bitcoin’s open-source code and modify it to distinguish itself with new features.
On the other hand, tokens have the capacity to represent any tradeable asset. In fact, tokens are much easier to create given the process of using a standard blockchain platform to achieve full functionality through smart contracts.
However, there’s still one more way to launch your own coin or token: creation services. Why go through all the work of figuring this out when you can just pay someone to do it for you? That’s exactly what many companies, such as Blockchain App Factory, offer online. This gives the average person an easy and direct way to create their own token or coin. All you would have to do is provide the service with a list of basic parameters such as name and logo to get the whole process started. From there, these online services will take care of all the technical work and return a fully functioning cryptocurrency to you. Yet, as easy as this process makes it, creating a cryptocurrency is not the hard part — gathering value is.
ICOs & Token Sales
By the time you create your very own cryptocurrency, you may think that the hard part is over. Unfortunately, the hard work is only about to begin.
Creating a cryptocurrency with real value takes time and dedication. In order to gain a backing from the public, tokens are offered in what’s called an initial coin offering or, ICO, which is generally a form of crowdfunding. In an ICO, tokens are offered to people who in return give that company money in the form of fiat or even BTC. However, ICOs have been under much scrutiny lately given the tendency of the company to either fail or take your money in a scam… or both!
Unlike an IPO, ICOs do not offer any stake in the company or actual equity. Instead, people who offer money for a token must hope that the company succeeds and their corresponding cryptocurrency becomes much more valuable in the future. Otherwise the company will fail and the original investment into that token will be lost.
So, can you create a cryptocurrency? Sure, there are tons of ways to do so in fact. But the real question is, Can you give your cryptocurrency value? If you can answer both of these questions with a “yes,” you just might have the potential to make something huge. In reality, most ICOs ultimately fail and ruin the investments made by those willing to take the risk and gamble. There are several ways to create your own cryptocurrency, but at the end of the day, it’s giving your cryptocurrency value that is the hard part.