If we were to go back in time by about a decade and a half and ask someone if they would like to invest in a new kind of currency that does not have a physical representation and is not accepted by banks, they would have dismissed the idea as a fanciful flicker of imagination. Today, in contrast, the global valuation of cryptocurrency stands at a staggering $939.56 billion and is increasing day by day.
Cryptocurrency does not show any signs of saturation in the near future. This has gotten a lot of crypto enthusiasts and entrepreneurs into thinking about creating their own cryptocurrency.
Creating your own cryptocurrency sounds like a wonderful idea, but the idea needs to be backed by science, figures, and a goal. Without question, it is a lucrative business idea, but only if it meets certain conditions. The first and foremost of them is that your cryptocurrency should have a tangible and definite purpose and goal. There should be a reason for people to use your cryptocurrency and for investors to consider investing in them.
Before you embark on your journey of cryptocurrency creation, you are called to understand what a cryptocurrency is. A cryptocurrency is a currency that resides on the top of the distributed, decentralized, digital ledger called the blockchain. It is completely digital and does not have a physical representation. It does not come under the command of any centralized body like a bank or the censorship of governments.
As the name implies, a cryptocurrency can be used as an instrument of transaction. However, the scope right now is quite limited, and it might not completely replace the existing fiat currency, but it has the potential to become a mainstream instrument of transaction in the future owing to its advantages.
Advantages and Disadvantages of Cryptocurrencies
A cryptocurrency is not just a new kind of currency but it brings in quite some technical innovations. Since the currency works on blockchain technology, the access is universal and transactions are immediate. The transaction fees associated with every transaction irrespective of them happening between two people residing next to each other or two people present in two different corners of the world is almost 0.
This presents a lot of significant advantages over the current banking system that is plagued with delays, intermediaries, and high costs.
However, cryptocurrency has not succeeded beyond being a technology-demonstrator, at least not intense enough to be a practical solution. The biggest reason for this non-acceptance is the legal dimension of this new tech. The absence of centralization makes the entire system haywire. The laws that govern cryptocurrency have not been perfected yet. The value of cryptocurrency is quite volatile. You might be able to buy a pizza with a certain volume of cryptocurrency on a day and buy a Lamborghini Aventador the very next day with the same money!
Although this price fluctuation is ideal for trading, it might not be in the interest of business people who need to retain a profit or loss in its value for a sustained stretch of time.
Difference Between Coins and Tokens
More often than not, you will see the occurrences of the times “crypto coins“ and “tokens“ parallel to each other. Although on the surface, they appear to be, there are a few key differences that distinguish the two.
A crypto coin needs an entirely new blockchain to function. It holds value even outside the blockchain and can be used as an instrument of transaction.
A token, on the other hand, is just a representation and it can be built on top of existing blockchains. The fact that most initial coin offerings that offer utility tokens are built on top of the existing blockchain called Ethereum is a clear explanation of the differences.
As you may have inferred from the above example, building a token is a lot easier than building a new crypto coin. Needless to say, the first thing that you need to do when you decide to build your crypto token is to decide on the blockchain upon which the token will be built. To build your own crypto token, you will need to essentially deploy a smart contract. A smart contract is a small self-executing program that is designed to get triggered only upon certain conditions being met. This smart contract is what contributes to the awesomeness of blockchain technology.
You will also need to work on the variables like the number of tokens that will be in circulation, the name of the token, the token symbol, and the decimal units. Once you have created a transfer event i.e. the event that lets your wallet know that a token has been transferred, you can go on to release your token to the rest of the world through an initial coin offering.
Creating your own cryptocurrency is a lot more complicated than creating your token. It can be attributed to the fact that you will need to build your own blockchain to build your coin.
Before you embark on your journey of crypto coin creation, you will need to define a purpose for your coin. You will need to analyze and understand the legal implications of building your cryptocurrency. Your crypto coin will also need to be subject to periodic audits to ensure that there are no lapses with respect to security.
The success of your crypto coin entirely depends on the intensity of promotion on popular channels and the way in which you nurture and groom your community of traders, investors, early adopters, fans, marketers, influencers, and enthusiasts.
Platforms for Making a Cryptocurrency
Although the process of cryptocurrency development can be quite demanding not only for beginners but even for many companies that offer cryptocurrency creation services, there are a few shortcuts that can help.
A simple and straightforward way would be to just copy the code of an existing asset like the bitcoin, make minor changes and float your own blockchain and cryptocurrency. However, even doing that requires technical expertise. Alternatively, you can also use this method called forking. This is the process of splitting from the original cryptocurrency and its blockchain but in the process, creating a different crypto coin altogether.
Need for Experts to Create Cryptocurrency
One of the best ways to create your own cryptocurrency would be to outsource the process of cryptocurrency creation to a company of experts. A cryptocurrency development company will not only process the technical expertise it requires to work with nascent technology like the blockchain, but will also have the industry and market knowledge to make you understand the implications of your idea in the crypto space.
Whether it is token creation or crypto coin creation, a cryptocurrency development company can surely help in this regard. All you need to do is get in touch with a company that specializes in crypto development and they will take care to understand your requirement and take it forward.
In the words of wisdom documented timelessly, anything that is built easily will not stand the test of time. The statement cannot be any more true when it comes to the realm of crypto coins. Although there might be flickers of success, it is only those that are built from scratch for a specific purpose and with the specific vision and mission that succeed in the market.