If you’ve ever wondered how a cryptocurrency comes to fruition, or if you think you may have an innovative idea for your own, the following steps will cover the basics of how a new coin is developed.
Coming Up with the Idea
The very first step in creating a new cryptocurrency is to come up with a unique idea that provides a solution to an apparent technological or economical issue. A well-written whitepaper in PDF format can get the idea out to the crypto community and help you gauge whether or not it’s feasible. The whitepaper should go into detail about the philosophy behind the project, why it’s necessary, and why it’s the ultimate solution to the identified problem.
Building a Community
Once you know for sure that you have a great idea, you’ll need to get other people on board in order for it to work. A cryptocurrency can only hold value as long as there are people willing to mine, buy, and sell it. You’ll need to build a community around the coin that is passionate and supportive about the vision, but you’ll also need to communicate the benefits to the community if they invest in your coin. Create interest in the project through marketing, social media, word of mouth, and other promotional techniques.
Hiring Developers
After you’ve determined the properties and functions of your cryptocurrency, you’ll need to find developers who are right for the project and are capable of making it work as it should. You’ll need to make technical decisions such as whether it’s best to create a whole new blockchain or fork/build upon an existing one. Experienced developers should be able to help with these choices along with creating security measures, fixing bugs, and more.
In lieu of finding your own developers for your project, you can look into services like TuneTrade which will help you create and trade your own token.
Finding Miners
Once the technology has been developed, you’ll need people to mine the cryptocurrency. Establish trust with potential miners and provide an incentive for them to start mining. Having already built a community interested in the cryptocurrency before seeking out miners will help attract them to your project.
Getting Listed on an Exchange
Every exchange has its own criteria that a cryptocurrency must meet before being traded, but most will have requirements regarding security, strategic vision, feasibility, market supply and demand, maintenance, and overall project quality. Find out what these criteria are and work toward meeting them so that you can get your coin listed on some of the most commonly used exchanges.
Addressing and Preparing for Challenges
With over two thousand cryptocurrencies currently in existence, there is a lot of competition in this space. You’ll need to be prepared to set your crypto apart from the competition and be able to demonstrate why investors should choose your coin over the many others out there.
Make sure you’ve done as much research as possible into the cryptocurrency community and this process before deciding whether or not to jump in with your idea, understanding that crypto still hasn’t been accepted by the mainstream yet. Be prepared for what will happen if your cryptocurrency never takes off and have a plan for any potential roadblocks both before and after launch. Have an exit strategy in mind that is transparent, honest, and fair to everyone involved.
