Published on March 24th, 2019 | by Bibhuranjan

A Basic Guide On Creating A Cryptocurrency

In January 2009, Bitcoin was first introduced by pseudonymous developer Satoshi Nakamoto as the first decentralized cryptocurrency with the hash function SHA-256 as the ‘proof-of-work’ system. A digital asset or cryptocurrency is deployed as a medium of exchange for competent and secured financial transactions using cryptography.

All other cryptocurrencies than bitcoin were called altcoins ( alternative cryptocurrencies ). Over 4000 altcoins were released after the introduction of bitcoin.

Why not add to this collection of altcoins and remove the middlemen such as banks and brokers or solve some real-world problems. This is the time to think of the big idea, the real purpose behind your cryptocurrency.

By the end of this basic guide, you will be able to create your own cryptocurrency.

But before starting off, let’s address the basic question that if you want to create a crypto coin or a token.

Basic Guide for Creating a Cryptocurrency

1. Choose – Coin or Token

As I have described above, the first step for creating a cryptocurrency is to choose if you want to start your own blockchain and be the master of all the parameters or keep it simple and less time-consuming opting for a token.

Starting your blockchain is tempting with all your own unique features, decisions & parameters.

Whereas Bitcoin fork can be cost-effective, less time taking and comparatively requiring concise technical expertise.

2. ICO’s – Initial Coin Offerings

Just like IPO is a way to raise funds in exchange of shares, ICO is a way by which blockchain companies raise funds for their crypto projects.

This method is very preferable for token type cryptocurrency and this will again save your money as you are borrowing from the public.

3. Ethereum v/s NEO

Ethereum is the most popular coin and everyone’s first preference. But, for ethereum you need to know their programming language called Solidity whereas NEO can be build with many different languages including C++ and Java.

But the good news is, solidity is not very difficult. So, if you are planning to go for ethereum you can simply learn solidity.

4. Customization Availability

If you like to be the king of your kingdom, blockchains can serve the purpose. Just learn the technical expertise and you are good to set your own parameters using scratch. To know more about it , Please click here

Customizations can be done and you can easily create something that stands out from the crowd.

Focus on the criterias that were not taken care by the existing blockchain companies and try to learn from their mistakes. This might sound a bit old school but the ladder of success is climbed after mistakes, and why to make yours if you can learn from others and succeed.

Conclusion:

Creating a cryptocurrency can be very successfull if you make correct choices. I hope after reading this guide you have all learnt all the basics on how to create a cryptocurrency and now that you have understood about coins and tokens in detail, they will help you in creating your own cryptocurrency.

Tags: Bitcoin, Blockchain, cryptocurrency, Ethereum, virtual currency

About the Author

Bibhuranjan Editorial Officer, technofaq.org I'm an avid tech enthusiast at heart. I like to mug up on new and exciting developments on science and tech and have a deep love for PC gaming. Other hobbies include writing blog posts, music and DIY projects.