Beginner's Guide to Creating Your Own Cryptocurrency
Creating your cryptocurrency is possible... if you know how to program, market, and trade!
The Bitcoin boom has come and gone. Most of us have not gotten on that train quite yet, or if we have, have not been able to make the most money we could have made. If only we could have gotten in on the ground up, right?
Well, if you're feeling like you missed the Bitcoin train and now have to figure out which is the next cryptocurrency to boom, don't fret. You don't need to worry about getting new Bitcoin mining hardware, nor do you have to seek out new Bitcoin mining alternatives, either.
You might actually be able to navigate the crypto world by creating your own cryptocurrency. Here's how you can do it.
If you don't know how to code, creating your own cryptocurrency will not be easy. Some cryptocurrency creation firms, such as Cryptolife, will happily program a blockchain currency for you if you prove that you're actually interested in working hard to make it succeed.
To keep your crypto afloat, you will need to know how to program using blockchain coding. We suggest doing this step first, since it's one of the hardest steps. A good way to brush up your blockchain skills would be to take one of the best online courses to learn blockchain programing on Udemy, such as David Katz's Build a Blockchain course.
If you don't want to program your own crypto from scratch, you will need to approach a cryptocurrency developer group.
This is actually not that hard to do. Cryptolife, Wallet Builders, and Coin Creators are all development houses that are happy to do the hard work for you as long as you show them that you're serious. This can't be an idle fancy.
In many cases, you will have to pay for hosting or extra certification services. This is a smart move to do while creating your own cryptocurrency—if you're looking to legitimize your currency. More security means that you will have better outcomes and a higher value.
One of the biggest myths about cryptocurrency and blockchain is that it's unhackable. This is just not true—and if you're creating your own cryptocurrency, you need to make a point to beef up cybersecurity in every transaction.
You can actually learn how to program your cryptocurrency better, and how to patch up problems online. Most major cryptocurrencies have entire developer teams that are devoted to keeping cryptos safe. Since you're just starting out, you probably won't need an entire development team.
The course above can help out by teaching you about smart contracts—one of the most popular ways to improve your cryptocurrency's security.
You will also need to start working on marketing the coin.
Creating your own cryptocurrency isn't always the hardest part. For many people, the hardest part is getting users to get interest in the coin's Initial Coin Offering.
This means that you will need to market your coins on major cryptocurrency forums, reach out to marketplaces, and do whatever you can to get investors interested from the get-go. This may include writing your own whitepaper, explaining concepts to people, and even doing your own online marketing campaign.
Another way you can go about creating your own cryptocurrency would be to fork a currently existing one.
A forked cryptocurrency is a new cryptocurrency that's derived from an older one's source code. Github actually offers up open source code that allows you to fork cryptocurrencies using classic blockchain code. Contrary to popular belief, forked cryptocurrencies aren't bad.
Some of the biggest cryptocurrency names out there are actually forked cryptos. Bitcoin Gold and Bitcoin Cash are both forked currencies. However, you will need to have decent coding skills to go this route. Otherwise, you won't know what to add, modify, or remove.
After you're done creating your own cryptocurrency, you will have to find a way to get it on an exchange.
Right now, there are over 71,000 tokens in existence according to scanners. However, only around 670 are found on exchanges. Creating your own cryptocurrency is only half the battle.
If you want it to be successful, you're going to have to find a way to get it on at least one exchange. Most of the time, you will have to show that your source code is solidly built, and that you have excellent white papers in order to get on an exchange.
Cryptocurrencies are all about transferring wealth and have their own uniquely programmed decentralized transaction ledger. A cryptocurrency is often just traded for money.
With tokens, it will be a bit of code that's placed on top of an existing of cryptocurrency source code. Tokens can be exchanged for anything—including goods, cryptocurrencies, or services.
If you plan to have an ICO as a way to fundraise for your currency or for another project, you may need to make a token first. This Udemy course will explain the differences, while other courses will help you build a token.
We very strongly urge you to learn about the legality of creating your own cryptocurrency in your region.
One thing you should know before you capitalize on your coin is the legality of cryptocurrency in your region. Though it may not make much sense to us, there are some countries that have outlawed the creation and exchange of cryptocurrencies.
You can't legally profit (or make) cryptos in these places. Doing so could get you arrested or sued if you're unlucky.
If you intend on profiting off your crypto, you will also need to do all the legal mumbo jumbo, too.
One thing no one tells you about creating your own cryptocurrency is the risk that comes with it. You need to make sure that you have a business license, and that you have proof that your ICO will be made in good faith. This way, should your coin fail, you will have legal protection from lawsuits.
Once everything is said and done, you'll need to maintain your coin.
Maintenance is a huge part of creating your own cryptocurrency. Once it's out there, people will look to you to support it and keep it afloat. It's a lot of work, but hey—you could end up being a cryptocurrency mogul if you keep it up.