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How to Create Your Own Cryptocurrency- Beginner's Guide

Wed, 05/09/2018 - 10:03
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George Shnurenko
Cryptocurrencies are enjoyed because of their accessibility in terms of owning it, but even beginners can access the technology to build their own versions
How to Create Your Own Cryptocurrency- Beginner's Guide
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The recent surge in the value of cryptocurrency has triggered many responses as more and more cryptocurrencies have started popping up on the scene. Still, many are looking for answers to how to create a cryptocurrency? And even if you’re not much into coding, but have always observed different cryptocurrencies keenly, you’d also be looking to find out how to create my own cryptocurrency?

Well, creating a cryptocurrency of your own is very much possible, but you need to consider different options and have some caveats in your mind before actually taking this route. So, let’s just not drag it further and find out how to create own cryptocurrency.

How to create your own cryptocurrency?

To be honest, with all the technological advancements and improved methodologies, it’s now become quite easier to create a Blockchain or an altcoin. All you need to do is follow some basic steps and you’ll be able to set up your own cryptocurrency. Here’s what you can do to start with:

1. If you don’t have a technical background, you should better get someone with technical knowledge involved in the process. Your technical partner would help take care of the coding thing.

2. Decide whether you’d like to create an all-new cryptocurrency or would like to set up your own Bitcoin fork. Just make sure that you go with the option that fulfills your requirements.

Let’s take a look at how you can approach both these options for setting up your own cryptocurrency.

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Creating your new Blockchain

If you’re an expert who knows cryptocurrencies inside out and has a background in coding as well, you should better take this route. Setting up your cryptocurrency from scratch will allow you to have new, unique features and you’ll be the one to set up all its parameters as well. Here’s what you’ll be able to achieve when you take this route:

1. There are quite a few customization options available and you’ll be able to create something that easily stands out from the crowd.

2. It’s your decision whether you want to have minters or miners depending on earnings as per proof of stake or proof of work rewards.

3. It’s you who decides the block size, maximum coin supply and the rate at which new coins will be issued.

Creating your Bitcoin fork

Even though it sounds tempting to have control of everything, there can be certain drawbacks associated with it as well. So, the alternate option for you is to create your Bitcoin fork. If you want to know how to create your own cryptocurrency for free, this might be the best option available to you.

Here you’ll be using a dependable open-source code that is readily available. For creating a unique coin that serves your purpose, it’s possible to use the code available for a coin that is the closest in features to what you want your cryptocurrency to look like. Here’s why you should be taking this route.

1. When you launch your cryptocurrency with some secure Blockchain, it will help you keep it protected against any fraudulent attacks. For instance, you’re not exposed to double spending attacks because many miners are already on the network to secure it.

2. Built-in decentralized exchanges and other similar features are already available, allowing everyone to trade using your cryptocoin to acquire digital assets.

3. You’re also able to save so much of your time as you don’t have to do the coding and development.

So, that’s exactly how are cryptocurrencies created. Besides, there are a few aspects that you should take care of in order to launch a successful cryptocoin.

What to do for making your cryptocoin successful?

Now that you know how to create cryptocurrency let’s look into the aspects that you should be careful about to make it a successful launch. Here’s everything you need to know:

1. What it has to offer to consumers

With everyone ready to find out how to create a cryptocurrency exchange and set up one of their own, it’s important that you come up with a unique offering. It’s really important to clearly define your currency’s USP so that it’s appealing to end users.

2. Use the community

You’re mistaken if you believe that people will readily accept the cryptocurrency as soon as you push it out. Rather you should keep your focus on finding out points where other currencies lack and come up with use-cases as well as reasons why your currency should exist and survive. Once you’re done with that, you can go ahead and do the coding.

3. Know which development method you’ll be going with

Both the methods for creating your cryptocurrency have been described above but if you want to keep things under your control, you should code everything on your own or with the assistance of your technical partner. Just make sure you know which language you’ll be coding in and then stick to your choice.

4. Use a prototype to begin

Forgetting everyone in the community on board, you should have a prototype ready for approval so that you don’t have to explain everything to everyone. It will help ensure your concept’s clarity.

5. Security is important

Go with a hacker’s mindset and find loopholes or drawbacks of your cryptocurrency so that you can work to improve it. Try to think like a hacker to find vulnerabilities and then do everything you can to fix them.

6. Find your miners

Once your product is ready, you’ll be in need of miners. Just make sure you don’t oversell your product, rather you should build trust and express your intentions and vision to get them onboard. This will give everyone a clear understanding of what you’re going to achieve with your product and the idea behind it and they’ll be ready to stick to it for long.

7. Don’t rush for investors

This should be the last thing on your list of to-dos. People often start looking for investors when they even don’t know how unique their product is. Simply avoid it and your first point of focus should be exceptional execution only.

So, that’s how to create a cryptocurrency and make it successful. Just make sure that you lay down a perfect plan and execute it. You’re sure to make it big in the world of Blockchain!

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About the author

George Shnurenko is a Bitcoin and cryptocurrency enthusiast, financial analyst and writer. He's majoring in history but he believes that the digital currency which has taken the world by storm will bring about change to all us humans.