Cryptocurrency creation: important notes, step-by-step guide, and more!

Have you noticed how often a blockchain is mentioned in every news feed? This boosts the creation of new cryptocurrencies and systems that work with them.

As the internet keeps on buzzing with news about the crypto world, more people start thinking about the creation of their own cryptocurrencies. We shall cover the meaning of crypto, what is needed for its creation, pros & cons, and more!

Meaning of cryptocurrency: what should you know?

Although it is already more than a decade old, cryptocurrency is frequently misunderstood. A huge part of the population still has only heard of it from the news about its price. However, apart from all the myths, stories, and fairytales, only one meaning is true.

Cryptocurrency is a digital currency that is noteworthy for being decentralized.

It provides several features like the possibility of anonymous exchanges, transparency, powerful security. The point of cryptocurrency is to provide a possibility for a safe investment that is controlled neither by the government nor by any other institution.

At the very beginning, we have mentioned blockchain. This is a P2P network that is the core of any cryptocurrency. It is built of data blocks that store a lot of information about the whole transaction chain. Here comes the best part: it is impossible to change the data within the blocks, meaning that they provide maximum reliability.

We are confident that we have what it takes to help you get your platform from the idea throughout design and development phases, all the way to successful deployment in a production environment!

Coins vs tokens

Apart from the general term “cryptocurrency”, there still are two more, somewhat smaller subdivisions: coins and tokens.

If we speak of coins, these are currencies that are built on their own blockchains. Many famous names like Bitcoin and Ethereum are coins.

Tokens are a bit different. They use a blockchain infrastructure that was created by someone else to perform all transactions. They lack neither security nor transparency, the only difference is in the way they work.

Pros and cons of cryptocurrencies

Now we shall cover several positive and negative sides of cryptocurrencies.

Advantages

• Total decentralization
• Very fast transactions without limitations
• Relatively low fees
• Possibility to use worldwide
• Transparency
• Anonymity

Disadvantages

• Not accepted everywhere (not all stores, cafes, etc. work with them)
• Crazy volatility
• Impossible to reverse a transaction
• Storage issues

Key features for crypto development

Here, we shall cover several steps that will help you get an idea about your personal new cryptocurrency development.

Coin or token?

Choosing to go the hard way means creating a new coin. The biggest issues would be creating a new blockchain, using decentralized solutions, and paying a lot of money to professional developers.

While one can still possibly create a coin in several minutes by just changing one of the variables from Bitcoin’s core code, it is still required that you understand what you’re doing. Apart from that, a lot of funds will be spent on promotion, marketing, maintenance, technical support, and other similar features.

Opting for the easy way, you would create a token. You will get someone else’s blockchain and significantly decrease the price for development, creation time, and simplify other issues. So, basically, you take a ready solution that requires minimum effort. The price for this is the inability to control the blockchain.

Where to create a token?

There are three options that are generally used for the creation of tokens. These include:

1. Ethereum
2. NEO
3. EOS.

Each has its own pros and cons.

For instance, Ethereum works with the ERC-20 standard. Apart from that, it is crucial that you use its unique programming language called Solidity. Many other features are available there as well.

Speaking of NEO, the development of a token with this blockchain is possible with almost every high-level programming language. The list includes dozens of options. Among them are Java, Python, C#, and many others.

Finally, EOS. This blockchain implements the EOSIO.Token standard. Also, it is necessary that you use C++ or any alternative language that can be compiled into WebAssembly. It is a very popular choice among people who want to create their own cryptocurrency.

How to create a cryptocurrency of your own?

It is very easy to build your own cryptocurrency as long as you follow our step-by-step guide.

1. Get an idea

Get everything planned out. Consider the audience and the problems your cryptocurrency would solve in advance. The most popular goal is removing middlemen from all transactions and creating a currency that is accessible around the globe.

Your proposition must be very valuable. Customers must understand that this is the best choice for solving their issues. This is what they’ve been waiting for for so long.

2. Hire a development team

So, you’ve finally finished planning your idea and setting a strategy. Now, it is high time you hired a team of programmers who would make your idea a reality. You have two options:

• Freelance platforms;
• Outstaff and outsource agencies;

3. Smart contracts rules

Think of a real-world contract for literally anything. Well, in blockchain, this is a very similar thing. The only difference is that it is a digital version that cannot be changed.

4. Use external audit services

The low trust towards new names exists because of the many scams that deceived people before. An external audit company will boost your trustworthiness and show potential customers that your project is not a scam.

5. Create a white paper

A powerful description of your project is something that covers the problem, your solution to it, future plans of your company, the number of tokens that are planned to be issued, and what tasks your team worked on previously.

Without a good white paper, gaining the trust of your potential customers is nearly impossible. Think of it in advance!

6. Promotion

Now is the best time to let the world know about your cryptocurrency. Create a social media page, publish your advertisements, contact mass media, and do anything you can afford to promote your idea. Proper investments always pay off.

7. Build a community and listen to it

Powerful communities are the best thing in cryptocurrencies. They drive the price, boost the projects, and support your ideas. Remember to always answer their questions and ensure that nobody is ignored. This will build a strong brand.

Author

Ivan Kolesnikov

Total Articles: 211