How to Raise Millions of Dollars by Launching Your Own Cryptocurrency?
Cryptocurrencies or virtual currencies are digital modes of exchange created and used by private individuals or groups. Since most cryptocurrencies are not regulated by national governments, they are considered alternative currencies — media of financial exchange that exist outside the borders of the state monetary policy.
Bitcoin is the leading cryptocurrency. However, there are hundreds of cryptocurrencies and they appear almost every month. What are cryptocurrencies? Cryptocurrencies use cryptographic protocols or extremely complex coding systems that encrypt sensitive data to provide a unit of exchange. Cryptocurrency developers create these protocols on advanced principles of mathematics and computer engineering. it is almost impossible to “breakthrough” and thus duplicate or counterfeit currencies. These protocols also mask the identity of cryptocurrency users, making transactions and cash flows difficult to attribute to specific individuals or groups.
Differences between coins and tokens
Cryptocurrencies don’t have banknotes, but they do have coins. There is also one more term, Token in cryptocurrencies. People often get confused between a token and a coin. Although the terms crypto-coins and crypto-tokens are sometimes used interchangeably, it is a topic that confuses people, as they are often not aware that there are major differences between coins and tokens.
The term coin has been associated with cryptocurrency since Bitcoins became popular. While other currencies also began to use the term such as Dogecoin, Litecoin, or the like, coins are generally only used to refer to cryptocurrencies which are meant to be used as a store of value and a replacement for fiat currencies like US Dollars or the Euro. Coins by themselves should not provide any other rights or should not have any other use except as a pure store of value and a currency that can be used for day-to-day transactions. Tokens, on the other hand, refer to the cryptocurrencies which have additional rights associated with them or have certain particular characteristics.
The tokens do not aim to only be a store of value but may also provide a certain utility to the holder, like the ability to access services through a website. Generally, the prominent coins have their blockchains, and tokens are built on top of an existing blockchain. In common usage, the Ethereum blockchain hosts many Tokens.
What are the Benefits of building your Own Cryptocurrency?
Because of their political independence and fundamentally impenetrable data security, cryptocurrency users enjoy benefits that are not available to users of traditional fiat currencies, such as the U.S. dollar, and the financial systems that support those currencies. For example, although the government can easily freeze or even confiscate a bank account under its jurisdiction, it is very difficult to do so with funds held in cryptocurrency — even if the owner is a citizen or legal resident. On the other hand, cryptocurrencies come with a multitude of risks and drawbacks, such as illiquidity and value volatility, that do not affect many fiat currencies. In addition, cryptocurrencies are often used to facilitate transactions in the gray and black markets, so many countries view them with distrust or animosity. And while some proponents portray cryptocurrencies as potentially lucrative alternative investments, few serious financial professionals consider them suitable for anything other than pure bargaining.
If you think about how to create a cryptocurrency, you first need to know its pros and cons. Benefits are as following:
The main argument in favor of cryptocurrencies is their underlying technology — blockchain. This makes cryptocurrency independent from any authority and makes it so that no one can dictate the rules for cryptocurrency developers and owners.
- Transaction Anonymity
Thanks to the distributed nature of blockchains, every transaction is recorded and the records are immune to changes. At the same time, if a crypto address is not publicly confirmed, no one will know who made a transaction and who received the cryptocurrency.
- Lower Operational Costs
Banks and other financial institutions levy considerable transaction fees. This doesn’t mean that you don’t need to pay a fee for cryptocurrency transactions; however, the amount you need to pay is relatively small.
- Immediate Transactions
Fiat money transactions take a significant amount of time to be processed and settled. With cryptocurrency, you can create an unlimited number of transactions and send them almost immediately to anyone with a crypto wallet, anywhere in the world.
- Access to New Customer base
- Security for Funds
If we talk about disadvantages, we must say that there are factors such as
- Limited acceptance
There are still limited possibilities for those who want to make purchases with cryptocurrency. So, rather than asking about how to create a cryptocurrency, people more often wonder how to use cryptocurrency at all.
- High volatility
Very often, users thinking about how to get started with cryptocurrency forget about an important factor — high volatility. The cryptocurrency market is not stable, with frequent ups and downs even for famous cryptocurrencies like Bitcoin. It is highly risky to invest in cryptocurrency, as you never know whether it will be a profitable investment or not.
- Transactions are non-reversible
Mistakenly entering an incorrect cryptocurrency address may cost you money. There is no way to reverse a transaction. You may send a request for a refund, but if it is declined, be ready to lose your money.
- Cryptocurrency storage
There is a lot of horrible stories about cryptocurrency owners who lost their devices, forgot the private key, and could not access their cryptocurrency fortunes. These sorts of situations can happen to anyone, so anyone can lose their money accidentally.
These advantages and disadvantages must be considered when deciding to create a cryptocurrency that will facilitate your business goals and strategic plan.
The process of Creating own cryptocurrency
As we’ve already mentioned, you must choose the right team to bring your idea to life. Consider hiring experienced professionals who know their way around the blockchain and cryptocurrency world.
You can start with a source code, from scratch, or one that was written before. It will be an underlying code, which will be edited later and customized as required. From the technical point of view, one will also require a special files library to make the code work correctly. The most time in creating a new cryptocurrency is editing the source code. It will be necessary to change a lot of parameters integrated into the software downloaded from the Internet, including the name of the cryptocurrency, and to optimize the technical aspect of the code. Cryptocurrency will have its own key system that provides security and safety for the users who work with it. The first byte of the keys is written exactly when the source code is being edited. Then the images are edited — icons, which can be created using various graphics software. When everything is ready, the cryptocurrency can be released. This method is for advanced users.
But what about beginners? Even if you’re not tech-savvy, you can create any type of cryptocurrency on a budget thanks to different hashing, mining & consensus algorithms available online. Let say you already defined your idea, the problem that you want to solve with your dApp, and what audience it will target. After choosing the right development team, the next step is to create a smart contract that will have a significant impact on your project. There is no difference between classic contracts and smart contracts except that smart contracts are digital, work on blockchain, have predefined rules, cannot be changed, and are executed automatically.
You have to think about what blockchain platform to pick. The correct choice of a blockchain platform for your business depends on the consensus mechanism you’ve selected. Consensus mechanisms are the protocols that consider a particular transaction legitimate and add to the block.
Building a world-class cryptocurrency is of no use if your interface is not good. You need to make sure that the web, FTP servers, and external databases are of the most recent, and the front-end and back-end programming is done with future upgrades in mind.
The person, who owns their cryptocurrency, will pay attention to the ICO. The ICO (Initial Coin Offering) is an initial offer of the cryptocurrency as an asset for attracting investments. So, please consider hiring an expert audit company. ICO/STO security audits must be carried out by a trusted company with an established reputation of credibility. Also, a very important step is to dedicate time to crafting a white paper.
One of the primary development stages in developing the legal concept of the crypto coin will help avoid tons of regulatory issues (including SEC prosecution and legal liability). Make your Cryptocurrency legal and is prepared and abiding by the soon to become laws of international cryptocurrency regulations.
Creating a cryptocurrency helps you expand your business around the globe, 24/7. Best of all, compared to other businesses, it’s easy to create a cryptocurrency without losing your savings. The crypto-based business model is booming and research shows that it’s been growing 3X faster than other business models. So create your cryptocurrency and start making Millions of Dollars.