There is a great rise in the popularity of cryptocurrencies in the last few years. The high prices of Bitcoin, Ethereum, and many other digital currencies also led to the expansion of new cryptos that are being introduced all the time. Also, according to current trends, there will be even more people interested in investing and using cryptocurrencies as a regular method of payment. On the other hand, the main reason why most investors choose to buy various digital assets these days is that they represent a great potential for making a high profit. There are many websites and online platforms, such as bitcoin-code.io, where you can trade with Bitcoin and other assets.
People who were the first ones in this industry that started introducing new cryptocurrencies managed to create huge profits. Therefore, it is not a surprise that many people are interested in the technology and process of creating a unique type of cryptocurrency that will be active on the market. In this article, we are going to introduce you to the basics of cryptocurrencies and how can you create your own.
Learn The Difference Between Coin and Token
It is very important for the understanding of the whole system to distinguish and learn the difference between a token and a coin. Both tokens and coins represent cryptocurrencies, but the main difference between them is that coins are using unique blockchains. Some of the most popular coins are Bitcoin, Litecoin, and more. On the other side, tokens are using already created blockchain systems. The most popular token is Ethereum. Coins are specially designed for fast transactions, while tokens serve for the verifications of smart contracts.
The Process of Creating a Blockchain
If you want to come up on the market with a brand new type of coin, you will have to create your blockchain. There are two available options for that. The first one is to create a whole new system, while in the second one, you can adjust the existing network to be compatible with your coin. However, this process requires advanced knowledge of coding.
There are some important steps that you have to learn about the development of a proper blockchain network, such as a proper method of agreement, nodes, API development, implementation of advanced technologies related to AI, data science, coding, cloud services, integration of data storages, keys, smart contracts, and more. On the other hand, if you are interested in creating a token, you can choose some existing systems like Dash, Litecpin, Monero, Ethereum, and more.
Provide the System with a Proper Coding
The main advantage is that you can use the same codes that were already used in the creation of Bitcoin and many other cryptos. However, if you want to create something more unique, you will need a lot of time and effort to introduce something that has better quality and improved features from already existing digital assets.
Start the Mining Process
Before the process of mining begins, you will need to invest in a proper marketing plan to attract people who will become part of your system. With the rise of people interested in mining your cryptocurrency, it will get more popular and more valuable over time. Also, the speed of transactions and many other features depends on how many people are using your network.
While miners are necessary for building and running a proper system, finding the right investors is essential in terms of acquiring a competitive price on the market and gaining more interest from potential clients. You will have to create a proper business strategy that will attract more people and convince them that your network has the potential to create a digital currency capable of competing with the most popular ones on the market today. The most important thing is to develop a network of people who frequently buy and sell your cryptocurrency.
Determine Your Budget
Before you start with making your plans about whether you will choose tokens or coins and how big you want the network to be, you need to determine how much money you are willing to invest in this business. You should be aware that the whole process requests a lot of money, along with time, effort, and knowledge. Depending on the size of the project, the development of your cryptocurrency can cost between $10,000 and over $100,000.
Hire a Team of Professionals
In case you are interested in the whole blockchain market, but you have poor knowledge about coding and running these systems, that doesn’t mean that your only option is to become an investor and trade on this market. You can hire a team of developers that can create your cryptocurrency. Moreover, you can sign the contract with them and keep all the rights on that cryptocurrency for yourself. There are many services and platforms that you can hire for this task. Furthermore, people with a lack of knowledge could easily start their cryptocurrency by choosing to create a token instead of building a whole network.
As you can see, it is possible to create your cryptocurrency, but that will require a lot of knowledge and resources, especially if you are planning to introduce a new coin on the crypto market. Therefore, create a proper plan that includes all of the factors necessary for the creation of the blockchain network, finding potential clients, miners, and a way to establish your digital asset to be competitive on the market.
According to current trends, there is a great demand for new cryptocurrencies that have the potential to grow in the future. People who saw the potential of virtual currencies before they became so valuable in the last few years were able to make huge profits because all of the popular digital assets were much more affordable 5 or 6 years ago. The best example is Bitcoin, with a price under $1000 in 2015. Therefore, you can start a very profitable business if you are able to create a proper blockchain system and introduce a new coin to the market.