Bitcoin’s surge in value throughout the past year has created a large interest in cryptocurrencies. Each day, a new altcoin is created with the purpose to bring value to our current economy, or fix the problems within traditional industries (real estate, medical, finance, etc.). According to Coin Market Cap, there are about 1530 cryptocurrencies that have been created. While there are so many new alternatives that are launching, you’ll find that it’s easy to make your own cryptocurrency.
In fact, there are cryptocurrency development companies that can be used to help you, from the likes of Wallet Builders, CryptoLife, and Coin Creator. Each of these companies is willing to provide you their service as long as you have a clear idea of what you have in mind. But remember, most of them will charge their services in Bitcoin or in Ethereum, so make sure you have some in your wallet! Without a good idea and the funds to do it, chances are you’ll fail.
Even after you create your own altcoin, there’s still some difficulty behind it. You’ll have to tell others why its useful for the present and the future and make it interesting enough for people to use. While you don’t need to have coding skills to start new cryptocurrency, you’ll need to have some in order to keep it going. We suggest that you learn Python, C++, and Solidity (Ethereum’s own programming language) if you’re serious about this.
Cryptocurrencies are popular for cybercriminals. Poorly protected systems are more attractive to hackers than secure systems. One of the largest exchanges, BitGrail has been used hacked by over $135 million recently. Because of this, you should be smart and ensure that whatever application or altcoin your making is highly protected. Fortunately, blockchain technology can be used to encrypt your altcoin making it virtually impossible to hack.
As you can see on this chart, cryptocurrencies have a lot of value behind them. According to Statista, Bitcoin has over 12 billion euros in value! That’s about $14 billion in USD! As of now, Bitcoin has 34.6% of the total market share. Cryptocurrency is valuable and its only expected to see a lot more positive changes in its development in the near future. You should create your own cryptocurrency so that you can potentially gain a piece of this multi-billion dollar industry.
This graph also shows more than just the benefits of Bitcoin. It also shows the value of other altcoins that have been developed. For example, Ripple, Ethereum, and Litecoin have made over 1 billion in value altogether! While Bitcoin is the first and the most popular cryptocurrency, other altcoins have gained their share in the market.
This shows the amount of daily trading volume that occurs on the most popular crypto exchanges. Bitfinex is at 1.1 billion, while Bithumb is ranked second at $711 million. What does this mean? It means that users are trading large volumes of cryptocurrency a day. It’s only expected that this number will increase in the following months. When seeing both of these graphs, we can understand that there is a lot of benefits and value behind cryptocurrencies. Not to mention, you can build own altcoins and start to gain a market share of the crypto market!
Just as we use fiat money to obtain physical goods and services, cryptocurrencies are used to get digital data. The idea behind cryptocurrency is that it uses cryptography methods for protection and security purposes. This makes it more reliable and better than traditional money as it provides the user the ability to buy, sell, and trade their digital money without having to worry about a middleman or increased fees.
Different people embrace their reasoning from shifting into other cryptocurrencies. Here are some of the reasons why people have started using cryptocurrencies today:
- Fraud Proof: Thanks to blockchain technology, it’s virtually impossible that fraud will occur. All of the individual coin owners/currency encrypted their identities so that there is legitimate record keeping.
- Ease of Accessibility: Trading cryptocurrencies only require a secure internet connection. If you have access to the internet, then you can work with cryptocurrencies to your advantage.
- Lower Fees: You don’t have to worry about paying fees with cryptocurrency. The network compensates miners, which leads to a lower amount of fees per transactions. While there is no cryptocurrency/bitcoin transaction fee, most users will use a third party service like Coinbase where they can maintain and create a wallet. These third-party services act similar to Paypal, but without the high fees.
- Identity Theft: When you provide your credit card information to a merchant, you give them access to your credit line, even if it’s a small transaction. Most credit cards work on a “pull” basis, where the store create the payment and then takes the designated amount of money from your account. Cryptocurrency has a “push” system where the buyer sends exactly how much they want to the merchant without the need for extra information.
- No third-party included: Another benefit of blockchain technology is that it doesn’t require a third-party to complete transactions. Since cryptocurrency is decentralized, you obtain complete ownership rights of each coin that you own. You can make your digital currency support you and act as your own bank.
Before you learn how to make a cryptocurrency, you have to learn the four pillars needed: a good community, miners, merchants, and international acceptance. Keep these players in mind when creating ideas that your token is widely accepted and functional.
When you plan on making your own cryptocurrency, it can be easy to create it by code on your own. But, you’re missing out on the community when you do it this way. You should get your idea out to the crypto community out to see if what you’re attempting to make is equal to their demands. It needs to be relevant to their needs, background, and cultural heritage.
One of the largest examples of this is Feathercoin. It’s founder Peter Bushnell decided to create the altcoin for the sole purpose of creating a good community behind it. Since the coin has a lot of community behind it, they were able to find threats and vulnerabilities in their system easier. As a result, they were able to protect themselves from the 51% attack, which had already taken most of the value from other cryptocurrencies.
Creating such protections and making a good community behind your idea is a surefire way to make it successful. You’ll increase the trust and the legitimacy of the coin in public. This is hard for some companies that are just out there to create cryptocurrency for their own profit. Research your community and find out how you can provide value to them. They will in return, show their support by investing into your altcoin and protecting it from hackers and other third-party issues.
Once you created your own coin either through a cryptocurrency creation service or due to your own coding methods, you’ll have to speak on its benefits so that others can start mining it. Having miners increases the existence of your cryptocurrency and increases its value to coders and users. This is where you need to stop thinking like a coder, and thinking how you can bring trust and value to the people your targeting to.
Many coins failed because they don’t value the ‘soft’ stuff. They think that using technology will solve all of the problems and make them disappear. Central banks think this way by throwing money at their problems; however, the world hasn’t thought this way. You have to know what work needs to be completed and be ready to complete the jobs that others are unable to do.
Let’s say that you’ve reached this step; you’ve come up with a good cryptocurrency idea and created a good development team to help bring it to life. You’ve spread information about your coin through cryptocurrency forums and received a group of miners that are dedicated to making your altcoin grow in value. However, there’s one last step that you have to take.
The next step is to create a platform for the people who are mining your altcoin can spend it. This is not an easy feat. You’ll have to convince merchants and individuals that the digital bits you’ve made can be used to buy real things that they need. Your cryptocurrency should be able to gain value, become traded for things such as fiat money.
It’s not about educating your merchants and community with facts. You’ll have to inspire your users so that they can find the advantages on their own. Money is used as a ledger; people use it to satisfy their need and achieve their goals. Understanding this will take a long way in creating your own marketing efforts.
Merchant adoption is similar to obtaining miners. You just have to understand their different outlooks. They are different stakeholders who have the same rules. Merchants are conservative while the miners are more speculative. Merchants have only three goals, save money, make money, and increase their awareness. If you’re able to increase their sales while reducing their fees, they’ll help you by making your cryptocurrency more visible to the market.
After gaining popularity and assistance from miners and merchants, you have to get your coin accepted across international borders. One way to do this is to make your concept solve an international problem. For instance, making an altcoin that helps reduce international shipping fees and delivers products faster. If you want to get your coin more accepted internationally, it will have to fix an issue that people in other countries face.
But let’s be realistic. There has been no currency in the past 5,000 years that has dominated the globe. It’s highly unlikely, despite what crypto enthusiasts say, it’s virtually impossible for a cryptocurrency to take over the world. Remember, global cryptocurrency domination isn’t always the goal. As long as your cryptocurrency creates a lot of value, you’ll find people around the world that’s ready to follow your cause and use your own cryptocurrency!
Now that you’ve gotten past the concept of what makes a good cryptocurrency, it’s not the time to make your own! Follow these tips so that you can make a high-quality altcoin that will be respected and loved by your audience.
Advancing methodologies are technologies has made the process of creating a blockchain or an altcoin rather simple. Cryptocurrencies such as Ethereum has made it easy for users to create their own tokens as well. First, let’s look at the basic steps you’ll have to follow so that you can make your own cryptocurrency.
- If you have no technical coding skill, then you should get the assistance from a cryptocurrency creation service. Work with a technical partner so that you can handle the coding part.
- Decide if you want to make a new cryptocurrency or a bitcoin fork from scratch and pick the option that will suit your requirements the best.
Here’s a guide that will help you make your own cryptocurrency and choose which one is best for you.
Making a Bitcoin Fork – While having complete control over things can have its advantages, there is a myriad of drawbacks associated with it. Making a Bitcoin fork allows you to use existing open sourced code to create your new cryptocurrency. You can use this code and then add additional features to your coin as you see fit. Advantages of using this approach are:
- Creating cryptocurrency that’s a fork of one that has a good blockchain protects you and your currency from outside attacks (i.e., double spending attacks) since miners will be able to secure it on the network.
- You’ll have instant access to decentralized exchanges and allow your audience to trade your currency for digital and realistic assets.
- Since you don’t have to devote time developing and coding your currency, this method saves you a lot of time and money.
Making a new blockchain – If you’re an expert when it comes to coding and cryptocurrencies, this might be the better option. Making your own blockchain gives you the most control over the token’s code and gives you full ownership over its features. By taking this method, you can make your own parameters and innovative additions to it, giving you the opportunity to customize it to your best ability. Here are some pros when using this method:
- A multitude of options for customizing your coin and letting it stand out.
- You’ll be able to choose if you want to have minters or miners based on the earnings of your proof of stake or proof-of-work rewards.
- You can choose the block size, rate of distributing new coins, and the maximum coin supply limit.
Now that you’ve figured out how to make your own cryptocurrency, here are some tips that will help you push your idea further.
Bring Advantages to Your Customers – Everyone wants to make cryptocurrencies quickly, but tend to forget the customers they are attempting to market to. You have to define the benefits of your currency for the end user for it to last long. Remember, if your cryptocurrency is unable to connect to your customers, chances are it won’t be used, and they will find an alternative that suits their needs better.
Create a Prototype First – In order to make your altcoin better than the competition, you need to create a realistic prototype of it first. Rather than making your concept appealing to others or continuously explaining it, a prototype answers all of your customer’s questions immediately. And, it will be used to show clarity of your product. So make sure you create a reliable prototype so that you can get your ideas across easier.
Think Like a Hacker – Sure, you can have a cryptocurrency that’s respected by your audience, but how will you keep it safe? This is when you’ll have to think like the hackers who prey on weak systems. You’ll have to look through your weaknesses and loopholes of your cryptocurrencies regularly so you can get a better grasp on how to fix them. Place yourself in the hacker’s shoes and seek out vulnerabilities so you can keep it safe in the long run.
Investor Search – While this should be reserved for the end of your crypto project, you’ll have to find investors that can assist you in building capital. Most beginners make the mistake of finding the investor first without finding out how to make their product unique. Avoid doing this and do exception execution instead. This means that you focus on the quality of your product so that you can better explain it to investors.
Create a Deployment Method – As we’ve stated earlier, you have two options to make your own cryptocurrency. But if you’re needing something for the long term, it’s better than you code it on your own. When doing this, find a coding language for you and other developers to understand and stick to it. This makes it easier for you to deploy your altcoin idea and increase the chance of it becoming a success.
Nothing is Perfect – When starting off, you’re going to have to learn lessons about cryptocurrency on the way (i.e. creating a community, getting miners, marketers, investors .etc). Keep creating your product in a good pace and make the most workable version when you’re done. Modifications and changes occur during the process, and you can fix them later on.
There are also some things you want to avoid when you are making your first altcoin. Doing so allows you to create the best altcoin possible.
As a lot of cryptocurrency experts will tell you, taking care and maintaining your altcoin is easier said than done. When creating one, you are making a long-term project that needs to be constantly managed. The blockchain and the code still need miners and programmers that work to assist keeping your network alive. Here are five fundamentals you should keep in mind when making your first altcoin
- Good Logo
- Miner Utility
- Solid Code
- Proper Launch
Scammers, Bugs, Premises, Shills
Some altcoins within the cryptosphere have created a “ninja launch” and is known as an instamine or a premise. This means that the altcoin creators made the coins by themselves and have gained a large percentage of the coins that are in development. People are skeptical about pre-mining controversial due to the negative effect it has on the market. Some developers will say they are holding the coin for market and future growth, but in reality, they are dumping the tokens in a market.
When a large holder dumps a lot of token into the market, the price fluctuates wildly, and the smaller markets are susceptible to manipulation. Furthermore, some altcoin creators are untrustworthy; they’ll overpromise on their roadmap and not finish their project goals. There is always a myriad of niches that are within the crypto world and most low-quality altcoins don’t complete what they claim to provide. With Bitcoin, everyone knows its existence and has the strongest blockchain available.
To protect yourself from this issue, you’ll have to create a transparent altcoin that your audience can trust. This means that you’ll create a token distribution that doesn’t just benefit you, but them as well. As a rule of thumb, your company should only have 40% of the tokens. The rest should be distributed to your userbase, advisors, and bounty program. Doing this increases the credibility of your token and gives your userbase an incentive to use your altcoin.
Now that you’ve read this tutorial, it’s up to you to create your altcoin. It won’t be easy, but with constant management and dedication, your altcoin could be of value in the future. Remember, you want to get your project vision out to everyone, so don’t be afraid to connect with others to bring value to your coin. Conclusively, have a great idea in mind, have a strong development team, and continue to make changes on your altcoin so that it can be profitable in the long term!