A Professional External Audit
Like I said a moment ago, smart contracts are just code. This is the same for tokens. Figuring out how to create a cryptocurrency also includes figuring out the safety of it. So, for a user to trust the code, they need to know it is secure. This is why you need a professional audit.
Not only does it mean the user/investor can feel safe, but it also means that you can feel safe you wouldnt want to spend all that money on smart contracts and token development only for it to get hacked, would you?
It is an important step that brings legitimacy to your project. These audits are often referred to as ICO security audits, and you can get them from companies like Practical Assurance. Always ensure that the audit company you choose is credible and has a long history.
Getting your ICO verified with a professional audit will help promote your cryptocurrency project. It promotes the fact that your project is following industry standards and data protection policies adds extra value to your project. Its a crucial step!
The Cost Of Creating Your Own Crypto
Cryptocurrency is synonymous with money. You can create your own crypto to support your own app or support an ICO project. The purposes of creating your own coin or token may vary. However, there is one thing that all such initiatives have in common: money matters.
Did you decide to create your own cryptocurrency all alone, or will you use the help of a professional team of experts? Whatever road you choose, you should know how much money it will cost to achieve the goal.
The cost of creating your crypto depends on many factors, including whether you’re building a new coin from scratch or using an existing blockchain network as the underlying technology for your token. It’s up to you to decide which option you choose. Keep in mind that creating your own cryptocurrency from scratch is always more costly than building one on an existing blockchain. You should also be ready to pay more if you’re working with a team of cryptocurrency experts who take care of everything for you. This option will come in handy for companies and well-established businesses rather than individuals that want to play around with their own form of digital money.
Anyway, regardless of the option you choose, let’s see how much it may cost you to create your own crypto.
Choose A Consensus Mechanism
A consensus mechanism is a fundamental protocol that regulates whether a particular transaction can be considered valid. All the nodes in the mechanism need to achieve a consensus, meaning they need to confirm if a transaction can go through. So, to get your blockchain operating smoothly, all the participating nodes should be verified as legitimate ones and added to the block.
There are different types of available consensus mechanisms for blockchains. Let’s discuss the most popular options.
Proof-of-work is the consensus mechanism that Bitcoin initially used. It’s one of the most expensive options and requires a lot of energy and computer power to reach a consensus. The key idea behind the PoW consensus mechanism is that miners should prove the transactions in the blockchain network. Meanwhile, it makes the network more protected against hackers and malicious behaviour.
The proof-of-stake consensus mechanism uses a random algorithm for consensus building. It gives mining power based on the number of tokens a miner has. The more tokens a miner owns, the more likely he/she will be selected to extract the next block. The main objective of the PoS consensus mechanism is that miners support the projects for the long term. Some of the most vivid examples of blockchain protocols using the PoS mechanism include Dash and NEO.
Proceed to the next step once you decide which consensus mechanism you’d like to use for your blockchain.
Also Check: How To Transfer Bitcoin Into Cash
Make Your Cryptocurrency Legal
Slowly but surely the law is catching up with the cryptocurrencies and you better protect yourself from any surprises by looking into the trends around the cryptocurrency regulations and the direction they are headed.
Bonus step for overachievers: Grow and Improve your Blockchain
Youve come so far, dont stop now. Get a headstart into the future and think how you can boost your blockchain by tapping into the future-proof technologies like the Internet of Things, Data Analytics, Artificial Intelligence, Cognitive service, Machine Learning, Containers, Biometrics, Cloud, Bots and other inspiring developments.
The Rise Of Bitcoin And The Cryptocurrency
With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transaction effortless. Satoshi Nakamoto
Were it not for one particular use of blockchain technology the current blockchain revolution would most likely have gone unnoticed by the majority of people outside the tech industry. This use was, of course, the cryptocurrency. Bitcoin was first developed back in 2009 by the enigmatic Satoshi Nakamoto. It was the very first decentralized ledger currency and is today, the worlds biggest and best-known cryptocurrency.
The reason for this is not only that Bitcoin came first, but also the fact that there is a limit to the number of bitcoins that can be created. This effectively made bitcoin into what has been termed digital gold. While some early investors such as the Winklevoss twins bought millions of dollars of bitcoins, it wasnt until 2017 that the currency really took off. Its meteoric rise led to it becoming a regular feature in mainstream news sites such as CNN and the BBC. This is undoubtedly something that created enormous worldwide interest.
Today, it is estimated that of the more than 150 million bitcoin holders, roughly 70% are individuals with $1,500 or less worth of bitcoin. And it is not just bitcoin. There are around 1,300 different cryptocurrencies in existence today, at least 30 of which have a substantial market capitalization.
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Benefits Of Creating Your Own Cryptocurrency
There are several advantages you can gain if you create a cryptocurrency. Firstly, you will be able to make a profit. Secondly, making a cryptocurrency is akin to starting your own business: you will be able to develop a project that realizes your wildest dreams, and it wont require as much investment as a regular small business does.
If you already own a business, creating your own cryptocurrency to support it can provide a whole bunch of tangible benefits, such as:
- Access to new features
- Immediate, secure, and anonymous transactions
- Access to a new customer base
What Is The Difference Between A Coin And A Token
A coin is a cryptocurrency which does not require another platform to operate on. It has its own platform which is independent of every other platform that may exist.
However, a token depends on another platform for its operation. The most common is the Ethereum platform. Examples of tokens are Apollo, Golem, TenX, and many other rampant tokens in the crypto market today.
To successfully build a coin, one will use a lot of resources electricity, computer power, and human intelligence too. The whole process is very expensive.
Bitcoin, for example, was reported to use about the same amount of electrical energy as some countries use per year in its mining.
Can you imagine how much this would have cost in real terms?
Mining coins also take a lot of time. If we examine the Bitcoin blockchain for example we would see that it was once easy to mine coins but that isnt the case anymore.
It depends on the proof of work algorithm, the hash rate of your mining device, and the increased level of difficulty in verifying blocks.
For example, a device which mines at a rate of 120MH/s would release 25 Bitcoins every 98years. Thats a lifetime, dude!
A token does not have to go through all of the processes that the coin goes through. This is because one is merely building on an already existing platform.
It is noteworthy that there is also an ERC223 protocol which many enterprises have built their tokens on.
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Why We Need A Healthy Choice Of Cryptocurrencies
Take a look at this list of the most popular cryptocurrencies and you will immediately see that each one has its own unique selling point. The reason for so many different cryptocurrencies is not just that this is a new technology, but simply that there is a market for them.
Now, while no one expects all of these 1,300 current cryptocurrencies to succeed, it certainly makes sense that the overall number is set to multiply dramatically over the next few years. When most people think of cryptocurrencies, they think of Bitcoin, a global currency that allows an individual to send money to someone else anywhere in the world.
It is true that a small number of cryptocurrencies are set to be used for the majority of worldwide transactions someday. However, there is also the need for smaller cryptocurrencies that have unique features make them more useful for specific purposes.
Take, for example, the main drawback to using Bitcoin as a digital currency. Slow transaction times along with ever-increasing fees that actually make it more expensive than some of the traditional methods of payment make it less suitable as a high volume digital currency than many of its rivals.
In the early days of Bitcoin, transaction speeds were relatively quick. But as the complexity of the processing tasks required to process transactions increased, so did processing times.
Examples of some of the unique features targeted by new cryptocurrencies:
Create My Own Cryptocurrency
Can I create my own cryptocurrency ? Certainly! You dont even need to be a programmer to create your own cryptocurrency. The open-source nature of crypto makes it a relatively easy task.
There are thousands of types of cryptocurrencies. So how is this crypto currency produced? Who owns these coins? You dont need to be a software developer to create cryptocurrencies. Many platforms help you generate your own cryptocurrency. In this content, we have conveyed information that will allow you to make your own crypto money.
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Know What You Want To Do
The first stage of the cryptocurrency building is to know exactly what you want to do. Many people get very eager to jump on the bandwagon without a grasp of facts.
So, they fall by, In the long run, they miss out because they failed to lay the supporting foundation that will keep them afloat in the midst of difficulties.
Owing to much excitement, they do not deem it fit to have a very clear and systematic outline of what they want to achieve.
So, they fall by the wayside because when difficulties come, they have no clue on the way forward. This just shows that they never had any reason other than the excitement.
There are certain questions that you must be able to answer before you launch your cryptocurrency project.
A token does not have these questions may include the following:
What is the difference between a coin and a token?
Do I want to build a coin or a token?
What will serve the market right now, and what would be the economical option?
All these questions are to be addressed meticulously by you, and we have the insights here.
How To Create Your Own Cryptocurrency
There are close to 10,000 cryptocurrencies in existence, and more are coming up every day. But did you know that you could learn how to create your own cryptocurrency online? In this guide, we will show you step-by-step how you can create a cryptocurrency.
First of all, you need to decide on whether to create a coin or a token. While a coin has its own blockchain, a token runs on a platform upon which it is tailored to run.
Also Check: How Is Money Made In Cryptocurrency
So Lets Find What Exactly A Cryptocurrency Is
A decentralized digital currency that encrypted techniques to regulate the generation of currency units, transactions, and verify funds, is termed as a cryptocurrency. A bank or a third-party financial institution, or any centralized authority not regulates Cryptocurrency . Some of its amazing features are anonymity, security, and decentralization.
Cryptocurrencies are regulated on a decentralized peer-to-peer network, where every piece of information is stored in blocks and synchronized through a series of chains. The protocol of blockchain technology is robust and does not allow any manipulation of the transactions or of its data. So, this also turns out to be one of the most important features of blockchain.
So, when did folks believe in cryptos and became crypto folks? It took time for them to swallow, but they were amazed and accepted it. Bitcoin was one of the first invented and known cryptocurrencies, which holds the top position in the market. And, the number has touched 1600 now. A wide variety of cryptocurrencies like Bitcoin, Ripple, and Ethereum are present in the market performing new adventures every day. All this information has not fascinated tech-savvy folks but also companies that are the reason why they entered the market and are performing very well. If you want to create your own cryptocurrency, get in touch with a cryptocurrency creation platform.
How To Build A Token
The easiest and most common way to build a token is by using the Ethereum platform. It allows many investors and entrepreneurs to create decentralized applications very easily and with minimal requirements.
This article will take you through the simple process of building a token for your project and also creating a base or support for your ICOs.
Building a token necessitates the services of a professional developer or programmer. The developer would have to write some codes from the scratch up to the standard.
This is a very tedious thing to do because the developer has to ensure that he is correct at every step of the way. Imagine having an error somewhere along the line of such a long code. This difficulty is remedied by the ERC20 protocol.
Creating a token using an Ethereum platform involves using a smart contract and a MyEtherWallet , MEW.
There are also some components that you will need in order to successfully build a token. These components include an Ethereum address, a text editor like Sublime, Atom, etc and a solidity contract.
You can start out by following the easy stepwise processes below:
After you have successfully edited the lines above, then you should continue carefully through the following steps:
Congratulations, you have successfully written the code. Smile now! Ensure you check again so as to spot and correct any error or probably something you may have omitted.
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How To Create Your Own Bitcoin Fork
Building your own blockchain from scratch normally requires a lot of time, skills and resources to get everything set up correctly and up and running smoothly immediately after its launch. That’s why many individuals start looking for alternative ways of building their own blockchain. One of the most popular solutions is to create a Bitcoin fork.
A blockchain fork is essentially a software update. To get all elements of the blockchain network to work just the way it’s supposed to, all blockchain nodes need to run the same software version. Otherwise, it’ll be difficult or impossible to access the shared ledger to verify transactions and ensure the highest security level for the blockchain network. So, every time you decide to add new features, you should create a new fork.
There are two types of forks available:
- For hard forks, 90-95% of blockchain nodes must be updated. Otherwise, non-updated nodes won’t be accepted by the system.
- The situation is not as critical for soft forks. To get the system operating, they require that the majority of nodes use the latest version. Nodes that aren’t updated can continue operating on the old version of the software.
Following the same logic, Bitcoin forks are changes applied to the Bitcoin network protocol. Creating Bitcoin forks is the ultimate choice for users and businesses who don’t want to build crypto from scratch because they can use the open-source protocol and add new features.
How To Create A Bep
To create a simple BEP-20 token, youll need some basic coding skills to deploy a smart contract to Binance Smart Chain. Youll also need to have MetaMask installed and some BNB in your wallet to pay gas fees.
Copy in the contracts address to BscScan, select as the compiler type, and match the compiler version used in step 7.
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Get A Team Of Experts
Upcoming coins need to clearly communicate their intended purpose to potential investors as well as the Securities and Exchange Commission, which is becoming more involved in ICOs.
“They’re going to treat it like any security. You’re going to be required to have a prospectus, you’re going to have to download that information, and people will see risks associated with it,” said Kevin O’Leary of O’Shares ETF and “Shark Tank.”
To get a coin off the ground, you need a team of advisors with experience in marketing, high-profile investors to give credibility to the project, as well as cryptocurrency industry insiders.
We turned to O’Leary as well as Andy Bromberg, CEO of CoinList, a website that runs token sales, for pointers.
“Launching an ICO is a deeply technical process, but high-level the process looks a lot like starting a start-up,” Bromberg said.
How To Make Your Own Cryptocurrency: Example
The decision taking of how to create a cryptocurrency wouldnât be complete without an example. The programming behind making a unique token can be very complex. However, down below we have the structure of any basic cryptocurrency or token. This will help you create your own Ethereum token. A more complete cryptocurrency source code can be found here
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