Ever since Bitcoin’s price reached a new peak in 2021, more people have become interested in making their fortune through cryptocurrency. As such, there have been an increasing number of new cryptocurrencies in the market. According to CoinMarketCap, the total count of cryptocurrency have reached 5000 till date. This number is predicted to continue to grow because of the nature of the technology which allows anyone to be able to create their own cryptocurrency.
Cryptocurrency is build on top of the blockchain technology which is a decentralized computer network. This blockchain system functions to manage and record all transactions that occur on the network. Since all records are processed automatically through the system, this reduces the possibility of human error and also improves the security on this network. In some cases, some of these decentralized networks are only open for use by users of the same community.
Understanding Cryptocurrency Coins and Tokens
If you want to create your own cryptocurrency, you have to understand what tokens and coins are. In the world of cryptocurrencies, these two terms have different meanings even though they are both an asset that can be used as an investment tool. Cryptocurrency coins are used in blockchain transactions, while tokens rely on the existence of smart contracts. A smart contract is a trading system or payment transaction between users on a blockchain that uses a series of codes.
Tokens can be sold and exchanged. In addition, tokens also have a physical form that can move from one place to another. One example of a token that is currently popular is the NFT (non-fungible token). Coins are assets that cannot be moved. For example, when you transfer coins to someone else’s wallet address, your coins will not move and all transactions are recorded on blockchains.
How to Make Your Own Cryptocurrency
There are many cryptocurrency assets on the market, with each of them having its own unique feature. If you want to create your own cryptocurrency asset, there are a few things you need to do. Here are the steps you can follow.
- Define your cryptocurrency goals
Every cryptocurrency developer has his own goals and strategies to enter the market. What is the vision and mission do you have for your assets? What management system do you need to run it? What is the focus of your business? These things are just a few of the many questions you need to have the answers for, before creating your own cryptocurrency asset so that you can build a unique selling point that is different from other assets.
- Make sure you have a reliable development team
It’s no secret that to be able to create cryptocurrency you need to have great coding skills. If you don’t have one, you need to make sure you have the right software development team.
- Choose a Consensus Mechanism for the Blockchain System
The next step is to select a network protocol called the consensus mechanism. This protocol is a system that determines whether the blockchain network will consider a particular transaction or not. One of the consensus mechanisms that you can use is Proof-of-Work like Bitcoin. Proof-of-Stake which is another popular consensus mechanism that you can select as well. Apart from these two, there are many other consensus mechanisms you can consider. Make sure that the one you choose matches the characteristics of the cryptocurrency you created.
- Choose the blockchain system
The cryptocurrency assets you create require a blockchain system. There are many systems to choose from. You need to consider your options according to your technical capabilities, type of assets, as well as the characteristics of your business.
- Make sure all technical aspects of the cryptocurrency run smoothly
You will have to ensure the technical aspects of the crypto run smoothly. Some of these things are ensuring the node design system in your network, the internal structure of the blockchain network, the Application Programming Interfaces (APIs) and smart contracts are in working order. You also have to create an attractive and easy-to-use interface designs for users.
- Write your White Paper
A white paper is a document that explains the ins and outs of a cryptocurrency asset, starting from its purpose, explanation of the system, transaction flow, and also its potential to attract investors. This is to attract potential investors and users as they can understand your assets better. Your white paper needs to be written carefully so that it can convey the uniqueness of your cryptocurrency.
- Legalize your cryptocurrency assets
Make sure you have legalized your assets and ensure you have complied with the regulations. If you live in Indonesia, you can register your assets with Bappebti to ensure your crypto can be traded on the official market.
- Promote and build a community
You can run an ICO program and build a community through social media to build awareness for your cryptocurrency assets. The cryptocurrency user community is one of the factors that determine the success of an asset. Ensure you attract many users to join the community.
The Advantages of Making Cryptocurrency
All things have advantages and disadvantages. In terms of creating a cryptocurrency, here are the advantages:
- Low risk of fraud
Your cryptocurrency assets cannot be counterfeited and no one can falsify your transaction data in the blockchain system.
- Provides seamless transactions and anonymity
Users can protect their personal data and decide what information they want their sellers to know.
- Low operating costs
The blockchain system makes operating costs lower than the banking system in general.