With the rise of the crypto market, you might be tempted to start your own currency as well. Well, the theory says anyone in this world can create a cryptocurrency. But the true side is that you need proper knowledge and resources to accomplish this task. Just creating a cryptocurrency is not sufficient, there is a lot of work to do later, which includes promotion, listing on exchanges, and ongoing maintenance and upgrade. If you have planned it all, let’s get started on the first step of your cryptocurrency journey.
Understanding Cryptocurrency to start
Under cryptocurrency, the blanket falls into two things, a coin and a token. Coins are basically big players in the crypto world who have their own blockchain and work as an independent work body. While a token functions on top of already established blockchain technology. Etherium is a good example of a blockchain used by many tokens. Tokens usually have contracts with the blockchain for specific utility values.
BAT coin is a perfect example in this case as it rewards content creators through brave browsers. These tokens are further divided into two parts NFTs( Non-fungible tokens), which are based on the Ethereum blockchain and DeFi tokens. NFTs are used to represent a unique piece of digital property, like artwork, MP3, video and more.
On the other hand, DeFi is used for private keys and it is also based on the Ethereum blockchain platform. Right now Solana is also gaining popularity with its own blockchain technology(not a piece of financial advice).
Ways to create Cryptocurrency
There are three ways that can be used while creating a cryptocurrency.
- Create a new blockchain – Require a professional level of coding skills and needs pre-existing knowledge.
- Bifurcate an existing Blockchain – This is easier as you need a smaller amount of crafting skills and the codes are readily available on platforms like GitHub. You can take those codes, alter them and make a new coin.
- Using a platform – If you are not at all familiar with coding use a pre-existing platform like using the ERC-20 standard for the Ethereum network. The service does all the work and hands you the final project.
Read Also: How to mine cryptocurrency?
Step by step procedure
Step 1 – Decide a consensus Mechanism (A protocol that helps to confirm if the blockchain and node will accept the transaction or not. Proof-of-work and Proof-of-Stake is a prime example).
Step 2 – Choose a blockchain(from the above ways).
Step 3 – Create node (This will determine the functioning of the blockchain with many aspects to consider from hardware details to permission from the blockchain).
Step 4 – Build a blockchain architecture (What functions does the coin or token will do as once the purpose is fed in the program and the crypto is launched there is no going back).
Step 5 – Integrate APIs (it is an application programming interface that will show the functioning of your cryptocurrency, not all the crypto have API so it will make you stand out from the market).
Step 6 – Design interface (Interface consists of web services, files and transfer protocols for both the front and backend).
Step 7 – Legalise your coin (before launching the crypto, make sure to check the law and regulations regarding the registration process to make the coin legally yours).
Read Also: How to buy cryptocurrency?
This is all about how to create a cryptocurrency. This is the only tip of the iceberg and a guide for beginners. There are a lot of aspects to be known and sub-points to be covered. We advise you to know all the technical aspects and what needs to be done once your cryptocurrency is launched. If these processes seem like a big hassle, it’s better to consider investing in cryptocurrency rather than making a new one on your own. Making it from scratch requires money, time, technical knowledge and a high amount of risk.
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