If you are looking for information on how to create a cryptocurrency, then you have come to the right place. In this article, we will show you what cryptocurrency is and how it works, how to make a cryptocurrency, and the most popular platforms for creating crypto.
Cryptocurrencies are a new type of digital financial assets, the circulation of which is carried out by maintaining a register of transactions in blockchain networks.
Currently, there are over 8,600 cryptocurrencies according to data from CoinMarketCap.
Bitcoin and several other popular cryptocurrencies have a number of unique properties. We can say that this is an alternative way of preserving the value of the funds you earn with maximum protection of the ownership of the asset.
Bitcoin is often compared to gold. It also has a limited supply with a complex mining process. That is, you cannot turn on a virtual printing press and “mint” an unlimited number of coins, thereby devaluing those already issued. At the same time, it is more convenient to handle Bitcoin than with gold — to store, transport, transfer, receive, buy and sell.
A coin is a cryptocurrency that was created from scratch and with its own blockchain, or developed on the basis of a fork of an existing cryptocurrency, for example, Bitcoin or Ethereum. This implies having network nodes to maintain their own protocol, user community and technical team. You can also find the term “altcoin” (alternative coin) — this is the name of any coin other than Bitcoin, which until 2011 was the only cryptocurrency using blockchain technology.
The competition on the crypto market is really great, that is why only those projects that have real working tools and products can survive in the digital industry and even more so to break into the top 100 ranking of the largest digital coins by capitalization. Therefore, before issuing another coin, you need to understand for whom it is intended, what benefits it will bring and what advantages it will have. The method of creating cryptocurrency also depends on the goal.
Each coin is based on a program code. It contains the technical characteristics and parameters of the network. When creating a cryptocurrency, the code can be written from scratch or, taking the source code of Bitcoin or another altcoin, you can remake it for yourself.
This option is the most difficult, suitable for a team of experienced developers who have a large supply of funds and are ready to spend from several months to several years on issuing a cryptocurrency.
The second option is to fork a digital coin. This is, in fact, the creation of a clone of a well-known token, but with the correction of critical errors and the addition of new functionality. For example, there are more than 50 Bitcoin forks on the market today, the most famous coins are Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond.
The peculiarity of the token is that it does not have its own blockchain and supporting nodes, but uses the blockchain of an existing coin. Most often, the Ethereum blockchain is used to create tokens, although such a function is provided in the blockchains of many coins, for example, Omni and Tron. Despite the fact that tokens are intended to be used as an internal currency or a means of access to services and applications, early investors try to buy them up for further resale on exchanges.
In order to create your own token, you need to form a smart contract and “cement” it in the blockchain.
The process of creating a cryptocurrency is multi-tiered and complicated enough, that is why it is reasonable to utilize the assistance of specialized platforms for creating a cryptocurrency.
Most often, when creating an internal token for a service or ICO, developers use special blockchain platforms such as Ethereum, NEO, EOS, Ripple, or Waves. There are also special frameworks for creating cryptocurrencies.
Usually, such services contain only the structure of the blockchain and its basic modules, and the developers add all additional components on their own. The advantages of frameworks are that they allow you to use ready-made developments for free. Unlike using other platforms to create digital tokens, frameworks allow you not to overload the project with unnecessary functionality.
- GitHub.com is the largest web service for hosting and collaborative IT projects. On it, you can select the appropriate code and find the necessary software, for example, the Open-Transactions software package that allows you to create digital coins.
- Ethereum is the blockchain platform on which most of the tokens for ICO projects are created.
- The World Exchange is a platform created by the Ripple team. The service allows you not only to replenish your wallet, buy and sell XRP coins, but also create your own tokens.
- Hyperledger Fabric is a framework for creating smart contracts and cryptocurrencies supported by the Linux Foundation.
- Exonum is another open-source framework for building blockchain-based applications.
- WAVES is a Russian blockchain platform for the development of digital coins that do not meet the ERC20 standard.
For an independent launch of a token using the modified program code of a well-known digital coin, for example, on the Ethereum blockchain, you will have to pay about 2 ETH. The creation of a unique altcoin with specialized knowledge will cost 0.5–1 BTC.
It should be borne in mind that often various programs and services for creating cryptocurrencies take an additional fee for choosing a consensus algorithm, hashing and changing the complexity of mining, testing network, as well as premine and notifications about problems. There is a separate payment for creating a mining pool and faucets for distributing coins.
Many people want to replicate the success of Bitcoin without putting in the appropriate effort. People most often confuse the cause and effect of the success of projects, since they believe that they just need to issue a cryptocurrency, and then it will find its users, appear on exchanges, and its rate will skyrocket. However, to create your own cryptocurrency, the following steps are necessary.
- Find out what Bitcoin is as a technology and why it continues to exist, regardless of government pressure, exchange rate, and other difficulties. This can take over a year.
- Create a fundamental improvement over Bitcoin. Without this, the new cryptocurrency is unlikely to interest anyone.
- Prepare to recruit an entire staff for the project. Besides, they don’t have to be just performers. It is desirable that these were ideological people, theoretically and technically savvy.
- Allow at least a year for launch and several years for the development of the project.
- With all this in mind, try to guess what will be of interest to the community in a year or two in this area.
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- Choose the pair and the amount for your exchange. For example, BTC to ETH.
- Press the “Start exchange” button.
- Provide the recipient address to which the coins will be transferred.
- Move your cryptocurrency for the exchange.
- Receive your Ethereum coins!
We are always ready to give you support if you have any issues with exchanging coins. Our team does our best to protect all members and answer their questions. For all requests message us via firstname.lastname@example.org
The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Originally published at https://stealthex.io on March 2, 2021.