How to make your own cryptocurrency bitcoin’s huge success and the tremendous growth of many emerging cryptos have many people wondering if they can create their own cryptocurrencies but exactly how do you create your own crypto before we get into that?
- Is your business on the internet number two?
- Does your revenue come more from digital payments?
- then hard cash number three will be an online payment option?
- increase your user base number four do you plan to stay in business for more than a couple of years?
If your answer to all these questions is yes then your business could easily do with its own cryptocurrency in this blog, I’ll walk you through the 7 steps that you can follow to develop your first cryptocurrency stay tuned.
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see while both are cryptocurrencies coins are very much different from tokens you need to understand their underlying differences right from the start if you were to figure out how to make a cryptocurrency that matches your specific business needs,
so here’s the real deal a coin operates on its own blockchain where all transactions occur examples include bitcoin ether which operates on the bitcoin and ethereum blockchains respectively this means that if you want to make your own coin you need to create your own blockchain,
on the other hand, a token works on top of an existing blockchain infrastructure example ethereum or neo which is used to verify transactions and make them secure tokens are often used like smart contracts representing everything from physical objects to digital services you’re free to use,
ethereum or neo as the underlying technology to start a new cryptocurrency in this case a token the primary use for tokens is a security token offering or sto which helps projects and startups fund operations through a crowdsale this is essentially the main reason why companies start considering creating,
a cryptocurrency in the first place with that said let me now walk you through the steps of creating your own cryptocurrency,
pick a suitable blockchain platform if you want to create a token you’ll need to choose a blockchain to mint your trading on some of the excellent blockchains you can consider are BSC and ethereum to create your own coin you’ll need to think about designing or hiring someone to create a custom blockchain for it,
choose a consensus mechanism whether you opt to create your own blockchain or choose an existing one for your token,
you’ll need to select a suitable consensus mechanism what does this mean well consensus mechanisms essentially determine how people confirm and validate transactions on a network most blockchains use proof of stake consensus mechanism since it has low hardware requirements and many different variations of proof work as used,
bitcoin is considered by some as more secure but it’s often expensive to maintain and not as environmentally friendly so you’ll have to weigh the two to determine which one works for you,
develop your blockchain architecture you’ll only get to this step if you’re creating a coin that said not every blockchain allows the public to validate transactions or run nodes meaning you’ll need to decide on having private-public permission or permissionless blockchain architecture the blockchain architecture you settle down on will depend on what your coin and project is attempting to do for example if you want to create a coin and retain total control you might need to run a private blockchain,
start developing your blockchain if you don’t have expert level knowledge in blockchain development,
I’d recommend that you look for help to bring your idea to life in other words you want to bring an experienced crypto development team on board to collaborate with you during the development process keep in mind that once your blockchain goes live it’ll be really hard to tweak the core structure and rules so I cannot overemphasize the importance of testing to ensure everything works as intended you want to tap into the value of test nets which are essentially live environments that allow developers to test their decentralized apps,
audit your blockchain and crypto code once the development and testing process is done run a third-party audit while this step is not mandatory per se it gives you an assurance that your crypto is fully functional and builds some sort of trust or credibility in future investors and users look up a reliable auditing company and contact them into a contract to thoroughly assess your code for any vulnerabilities or bugs you may have missed once the audit report is out you can share it online and use the recommendations to improve your code,
confirm your crypto abides by the international cryptocurrency regulations the last thing you want to deal with is legal bottlenecks after you’ve launched your own crypto so cross-check that everything is by the book if there’s any legal requirement you need to fulfil ahead of launching your crypto do that first
mint your coins the last and most exciting step is making your crypto a reality here you start minting your coins the precise method you use to mint your cryptocurrency will depend on what’s known as tokenomics basically tokenomics dictates your crypto governance such as how many tokens will be,
minted the launching price and distribution now at this point I’d like to say that this guide is a quick description of the crypto development process so it doesn’t go in-depth on the technical details of each step this guide was helpful to share,
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