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How to Create Your Own Cryptocurrency?

July 5, 2022


How to Create Your Own Cryptocurrency?

The idea of creating your cryptocurrency is a cherishing and exciting one for many crypto fans. But from where to start, where is the best place to start? First, you should be clear about crypto development, tokens, and coins. If you’re thinking about creating your cryptocurrency, this article will help you get started.

Understanding Coin VS Tokens

Firstly, it is crucial to understand the difference between a token and a coin. Although both fall under the umbrella term “cryptocurrency,” a coin such as Bitcoin or Litecoin is an independent blockchain. On the other hand, a token such as Basic Attention Token builds upon established blockchain technology infrastructure such as Ethereum. Additionally, tokens do not have any value or use outside a specific community or organization.

A cryptocurrency works like a fiat currency without a central bank. Coins are typically used to store, build, or transfer wealth.

A token usually represents some kind of contract or has a particular utility value for a blockchain application. Content creators who use the Brave browser get rewards with Basic Attention Tokens. Tokens can also serve as contracts or digital versions of different things, like event tickets or loyalty points. The non-fungible token represents a unique piece of digital property, such as artwork. In this context, Defi tokens serve many different purposes.

Things Required to Create Cryptocurrency

Before cryptocurrency creation, you must know a few things that play a vital role in cryptocurrency development.

● Build a New Blockchain

New blockchain development requires a bit of technical knowledge or the help of a savvy developer. Because you can also develop coins on their blockchains. For this, you have to create your blockchain from an efficient developer. Tutorials and online courses walk you through the process. They assume a certain level of knowledge, and you don’t end up with fully functional coins ready for public exchange.

● Use an Existing Platform

Another easy option for those unfamiliar with coding is to create a new cryptocurrency or token on an existing platform, such as Ethereum. Many new projects create tokens on the Ethereum network using the ERC 20 token.

● Creating a Coin

If you plan to develop your blockchain, coin creation will require a lot of time. However, by utilizing the prebuilt blockchain, you can make the process of your coin development faster. You can take the example of Bitcoin cash for a forked project. For this, you are required to have a high level of blockchain technical and coding knowledge. Getting new users onto your blockchain network will also be crucial to the success of your project.

● Creating a Token

The reputation and security of an existing blockchain can be leveraged by creating a token. Despite not having complete control over your token, you can still customize it to your liking. For creating your token, you can use various websites and tools, especially on Bitcoin and Ethereum.

Steps to Follow for the Creation of Cryptocurrency

After following the above requirements, you can jump to the next steps for building the cryptocurrency. Some of these steps will be less relevant when paying a third party to create the new coin. However, whoever undertakes this task should be familiar with these aspects of how a cryptocurrency is created.

● Chose the Consensus Mechanism

It relates to the three methods mentioned earlier. It is crucial to decide which blockchain environment a coin will exist in. According to your technical skill level, comfort level, and project goals, you can choose a blockchain.

● Create the Nodes

Nodes are a part of any distributed ledger technology (DLT), including blockchains. Cryptocurrency creators need to decide how their nodes will operate.

● Build the Blockchain Architecture

A developer is 100% sure about all blockchain functionality and the design of its nodes before the launch. After deployment, nothing can be revamped. Hence, testing on the test net is necessary. There are simple things like a cryptocurrency’s address format and more complex things like integrating the inter-blockchain communication (IBC) protocol for communication with other blockchains.

● Integrate APIs

APIs are not available on all platforms. Adding APIs to a newly created cryptocurrency could help it stand out and increase adoption. This step can also be made easier with third-party blockchain API providers.

● Design the Interface

Designing the interface is an important step that demands consideration. Cryptocurrency creation is useless if people find it too difficult to use. Web servers and file transfer protocol (FTP) servers should be current. Further, both frontend and backend programming should consider future developer updates.

● Make the Cryptocurrency Legal

The failure to consider the last step led to trouble for many who initiated or promoted ICOs in 2017 and 2018. They may not have realized that creating or promoting new coins could result in fines or criminal charges, depending on the circumstances. Knowing the laws and regulations surrounding securities offerings and other related topics may be a good idea before launching a new coin. As the issues are complex and they are constantly updated, you may wish to consult a lawyer with expertise in the area to guide you through this process.

Final Talk

Creating your own cryptocurrency is a billion-dollar idea in today’s digitally growing world. If you want to get into this stream, let us help you make this happen.

Hashlogics is a Crypto Coin Development Services provider with result-oriented coin development expertise. Our Crypto Coin Creation Services will give you desired results within a short period. The whole process of cryptocurrency coin development involves a lot of technicalities which is not easy to handle for a nontech savvy person. Hashlogics will provide you with a detailed guide to cryptocurrency development. So start the journey of your crypto development right away with us.

Since Stablecoins came to market, a huge interest has developed in the features and functionality of Stablecoins. They introduced the much-needed stability in crypto to demonstrate that they can also serve as a vital instrument in financial exchanges.

If you want to get benefited from the Stablecoins, you can avail the Stablecoin Development Services from Hashlogics. We offer our services to give you a remarkable profit-making experience.

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