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How To Create Your Own Cryptocurrency and Make Money

How To Create Your Own Cryptocurrency and Make Money

By Udemezue JohnPublished 6 months ago 7 min read
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How To Create Your Own Cryptocurrency and Make Money
Photo by Jievani Weerasinghe on Unsplash

Anyone can decide to create a cryptocurrency at any time, and it does not come as stressful as many people think; in most cases, you don’t have to be technically savvy to do so.

Most times, the variety of cryptocurrencies in existence are just a copy of the source code of an existing cryptocurrency, such as Litecoin was created all from Bitcoin.

Are you going to start from scratch? Or build a token on technology that is already trusted and available?

These are the process involved;

1. Building your blockchain.

Blockchain is designed to record information that makes it difficult or impossible to change, hack, or cheat the system.

A blockchain is a digital ledger of duplicated transactions distributed across the entire network of computer systems on the blockchain.

In every blockchain, each block in the chain contains several transactions. Every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.

The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT).

Building your blockchain means that you intend to develop your cryptocurrency from scratch.

Building a blockchain requires coding and technical skills on every level, making it a vast and challenging project.

2. Build on Top of an existing Blockchain.

This is the easiest way, to begin with; trust me, going the route of building your blockchain is tedious because you need to manage infrastructure, have a whole team on the ground and spend money.

Building on top of an existing blockchain does not make it a coin; it is called a Token.

So, the first thing you need to decide when figuring out how to create a cryptocurrency is whether you’re building a “token” or a “coin”.

Coins and tokens are both cryptocurrencies. A coin belongs to its blockchain, whereas a token is built on an existing blockchain. So, there can be thousands of tokens built onto a blockchain, whereas there can only be one coin.

Some of these blockchain technologies can be used to help create tokens. The most popular blockchain for building applications and tokens is Ethereum.

The tokens developed on Ethereum are called ERC-20 tokens. The Ethereum blockchain is a vast playing field for people trying to learn how to create a cryptocurrency because the Ethereum blockchain was the first to offer this service and is well trusted.

NEO is another great Blockchain platform that allows people to use the NEO blockchain to create applications and tokens. It is the second most popular platform. Token built on the NEO platform is called NEP-5 tokens.

Solana is a blockchain created by Anatoly Yakovenko, who previously worked at Qualcomm and Dropbox, where he specialised in designing distributed systems and compression algorithms.

Solana uses proof-of-stake (PoS) and proof-of-history (PoH) consensus mechanisms to improve throughput and scalability.

Consequently, the network claims to support 50,000 transactions per second (TPS), making it the fastest blockchain globally. Tokens built on the Solana platform are called SPL-token.

3. Create a Website.

Cryptocurrencies are digital assets, making them more appealing on the internet; you don’t need a physical shop to advertise or showcase your crypto project.

Cryptocurrency enthusiasts are more prevalent on the internet, and you should use every digital means to reach out to them.

Building a website for your crypto project does not mean you need something other than a domain name and a web hosting platform. All you need is the two.

4. Create a WhitePaper.

Whitepapers explain the purpose and technology behind a crypto project. A white paper is a document that includes an outline of a problem that the project is looking to solve, the solution to that problem, and a detailed description of the product, its architecture and its interaction with users.

They present statistics, diagrams and facts to convince interested investors to buy the cryptocurrency.

Producing a whitepaper is required for a crypto startup to be considered legitimate, as it helps investors realise how a business is different from rivals in the space.

Every single Initial Coin Offering (ICO) in the market requires a white paper if it is to become a prosperous campaign.

The contents of any white paper should include the following talking points but shouldn’t be limited to them:

1. Introduction

2. Disclaimer

3. Table of contents

3. Description of the market and the problem

4. Description of the product and how it’s going to solve said problem

5. Tokens: how many, why, how, when, and so on

6. How the raised funds are going to be used

7. The team

8. The roadmap

5. Get Your Coin or Token Listed on a Crypto exchange platform.

After adequate preparation to launch your coin and following the due processes stated above, it is time to get your cash to the outside world and make it eligible for purchase.

One of the many ways to make sure that your coin can be bought at a monetary value is to get it out to cryptocurrency exchange platforms to become a purchasable asset.

Choosing the proper crypto exchange for a coin or token project can be daunting. There are more than 500 crypto exchanges currently existing. Yet, the ramifications of the decision of where to get listed should not be taken with levity.

Another factor to consider when deciding on the crypto exchange platform is the significant price tag that it comes with; over seven-digit figures, US-Dollar has been reported to be paid for listings on the worldwide most liquid crypto exchanges, whereas other businesses may merely charge a five-digit number.

I recommend you check out this article to help you understand the processes involved in listing your cryptocurrency on an exchange.

6. Promote Your project.

Last but not least is to promote your cryptocurrency project to your community. Mind you that cryptocurrency is the money powered by your community, and the success depends so much on how you can convert your community into loyal customers. Therefore, promotion is vital for every business and should not be taken with levity.

The technical know-how and the team’s experience are the backbones of every crypto project that intends to succeed.

But you should not expect your whitepaper, roadmap or even the finished product to sell itself to unknown investors.

An excellent online marketing campaign with clear and open communication can do wonders and help distinguish your business in the jungle of thousands of projects.

Even if you have spent so much time creating your cryptocurrency, drafted a whitepaper and listed it on one of the most fantastic cryptocurrency exchange platforms. If you lose out on the course to promote, it is okay to say that your project failed on arrival.

Conclusion.

The technical creation of a cryptocurrency isn’t the most challenging part of launching a successful crypto project; you can create your token in just a few lines of code.

The real work is in giving your coin or token value, building the infrastructure, maintaining it, and convincing others to buy in is the part that you should think of the most. There are so many tokens worldwide, and more are being created every minute. The difference is the value proposition that your project carries.

Many cryptocurrencies are unsuccessful or even questionable from a legal standpoint, whether because the ICO wasn’t created in good faith or the coin failed to generate lasting interest.

I shared a link to a comprehensive article that addresses this question below, be sure to check it out.

Thank you, and have a wonderful day

Read More.

---. “How To Create Your Own Cryptocurrency and Make Money.” Tchelete, 21 Apr. 2022, How To Create Your Own Cryptocurrency and Make Money.

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About the Creator

Udemezue John

Digital Nomad currently blogging about marketing and internet of tings on https://tchelete.com

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