How Can I Create My Own Cryptocurrency?
How Can I Create My Own Cryptocurrency?
This question originally appeared on Quora, the knowledge sharing network where compelling questions are answered by people with unique insights.
Answers are by Slash Crypto, Halil Lacevic, TM Lee, Jon Roberts, Jose L. Nimmons, Caroline Amelia, Aaron Adams, Paresh Sagar, Steve Austin and Carl Gunell.
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Answered Feb. 18, 2018
Starting your own cryptocurrency is not as difficult as you might expect. Today, hundreds of digital currencies exist in the market. More and more alternatives of bitcoin are expected to come into play in the near future, as it is not rocket science to launch your own cryptocurrency.
Here is a quick guide to set up your own cryptocurrency:
• If you are not a technical person, you can collaborate with a technical partner for maintaining coding tasks.
• You have two choices:
1. You can create a bitcoin fork.
2. You can create a new cryptocurrency from scratch.
Choose the one which suits your requirements.
• New blockchain method: You can have full control over the code of the coin. You can also customize it and establish new and unique features. As you have full control over your coin, you can also set all the parameters of it. You will have your new and unique altcoin with cool and unique features as per your requirement. Also, you can set the maximum supply of coin, rate of coin issue and the size of chain.
• Bitcoin fork: In this method, you can rely on the open-source code for your cryptocurrency. You can make certain changes in the code later on to make your coin and its features unique. Also, such open-source codes are secure and reliable which will help to prevent hackers. It will save a lot of time as you don’t need to carry out coding and developing processes. Creating your coin in such a way will provide you with built-in exchanges from which people can trade your new cryptocurrency.
Halil Lacevic, studied Automatic Control Systems at Faculty of Electrical Engineering Sarajevo
Answered May. 13, 2018
First, it’s important to understand the difference between coins and tokens. Both are cryptocurrencies, but while a coin—Bitcoin, Litecoin, Dogecoin—operates on its own blockchain, a token lives on top of an existing blockchain infrastructure like Ethereum. A blockchain is, at its simplest, a record of transactions made on and secured by a network. So while coins have their own independent transaction ledgers, tokens rely on the underlying network’s technology to verify and secure transactions and ownership.
Build Your Own Blockchain—or Fork an Existing One
Both of these methods require quite a bit of technical knowledge—or the help of a savvy developer. Because coins are on their own blockchains, you’ll have to either build a blockchain or take an existing one and modify it for your new coin.
Alternatively, you can fork an existing blockchain by taking the open-source code found on Github—Litecoin, for example—making a few changes, and launching a new blockchain with a new name.
Launch a Coin or Token Using a Cryptocurrency Creation Platform
This option is the most feasible for the average person—a creation service will do the technical work and deliver your finished coin or token back to you. For example, CryptoLife will actually build a custom coin, and all you have to do is enter the parameters, from the logo to the number of coins awarded for signing a block.
TM Lee, running CoinGecko.com
Answered Aug. 26, 2017
Determining the total supply and distribution of coins is a very important consideration when creating a cryptocurrency. Top coins have successful monetary policies.
When most coins are created as another blockchain currency, the total supply can be an arbitrary number or some number that suits your monetary policy.
The initial distribution needs to be as fair as possible for the coins to be successful. They can come in the form of proof of work mining, this is the case for Bitcoin in which miners need to expense electricity in order to get coins (which circulates as the initial supply). Other ways include burning currency, where a user will send a coin to an invalid address and use that as a proof to redeem coins. What is most important is that it makes sense for the economic model you are trying to build.
Today most tokens are issued from the Ethereum platform and the distribution of the coins are done as a pre-sale or ICO, where coins are dispensed for raised capital.
Jon Roberts, Principal Product Designer for FinTech & RegTech Industries
Answered Sep. 13, 2017
There are lots of ways to do this.
1) You can make one from scratch using blockchain technology, or
2) You can make one on an existing platform (Ethereum/Waves/etc…)
I’ve seen a lot of people use WAVES to create a token.
Jose L. Nimmons
Answered Oct. 5, 2017
So obviously I wanted a piece of the action. It was time to launch Herncoin.
It turns out, though, that cloning bitcoin is actually harder than it looks. Although the code behind the currency is open source, it’s not like the designers have just left a nice file where you can change a few lines of code to end up with a whole new currency.
It actually takes some serious programming ability to get started: Dogecoin‘s technical co-founder, a software engineer from Portland, had to put in a couple of days of solid work to get the currency off the ground. Without a solid backing in C programming in the C language, I had no hope of creating Herncoin myself.
Thankfully, Matt Corallo, a veteran Bitcoin developer, came to the rescue. On Friday, he opened the doors to Coingen.io, offering to create a forked version of Bitcoin for anyone with 0.01 BTC (around $10) to spare.
With Corallo’s tools, the job becomes the work of minutes.
Get yourself some Bitcoin. You’ll need 0.01 BTC to make your own altcoin, but if you’re serious you’ll want to splash out another 0.1 BTC to get the source code to your creation.
Customise your coin by picking a name and a logo, and then alter the starting paramenters of Bitcoin as you see fit. If you have strong opinions over how many bitcoins should be given as a reward for mining, this is your chance to have a say. Again, though, if you have strong opinions about that sort of thing, maybe an off-the-shelf cryptocoin isn’t for you.
Download your vanity coin. It’ll only work on Windows or Linux, sadly, but just run the finished software and away you go. I’ll leave the hardest bit – finding someone else to join in – to you.
Caroline Amelia, Blockchain Entrepreneur
Answered May. 10, 2018
Creation of Cryptocurrency begins with idea generation. The idea must be a community based cryptocurrency solving an existing problem with fiat currency. The creation of tokens and coins is not the most difficult part, however, as it is more difficult to determine and market an idea that has a positive impact on society. ICO marketing requires lot of investment and it is even more difficult to attract people who are not aware of cryptocurrency to invest in your project.
Investors who are aware of cryptocurrency are more likely to look for the intention and the idea of the company. A company must invest heavily on marketing of their ICOs for investors who are aware as well as those who are unaware of cryptocurrency and blockchain.
Answered Feb. 3, 2018
When you look at the complexities that go into making a physical dollar bill it’s plain to see why most people don’t start trying to print a new form of currency every day, but making a new digital currency is surprisingly easy for someone with even basic coding skills. But coding isn’t the only step to getting your digital currency off the ground. Here are the five steps you should follow according to the makers of three cryptocurrencies.
1. Use Community To Nurture Currency
When you think about creating a new digital currency it’s easy to assume the first step would be to begin coding your coin, but that’s the wrong place to start, according to Chris Ellis, a London entrepreneur and a community activist at Feathercoin.
2. Code For The Long Run
Surprisingly, every single currency developer I spoke with said the same thing: Coding your cryptocurrency is usually the least time-intensive part of the process. That’s because virtually every cryptocurrency on the market today is based on the open source code of Bitcoin or Litecoin that is available on GitHub.
3. Get Miners Onboard
Once you’ve developed your coin you need to spread the word so people start mining it, which raises awareness of its existence and hopefully begins to gain some value in the eyes of its miners and users. This is where makers of cryptocurrencies need to stop thinking like coders and instead look into how human beings put trust (and value) in things.
4. Know Your Merchants
Let’s says you’ve made it this far. You’ve conceptualized a good cryptocurrency and brought the right team together to code and nurture it along its way. You’ve spread the news around the cryptocurrency forums and there’s a healthy dose of miners actively working to grow your currency. The next step is marketing your currency so all the people mining it have a place to spend it. This is no small feat. After all, you need to convince individuals and merchants that these digital bits you’ve created hold value and can be traded for things, just like traditional, trusted money.
5. Global Acceptance Is Not a Step
The last step in your cryptocurrency journey is, according to pundits and conventional wisdom, world domination by your coin. But given that in over 5,000 years no single currency has dominated the globe, it’s very unlikely–no matter what Silicon Valley Bitcoin enthusiasts say–that any one cryptocurrency ever will.
Paresh Sagar, Chief Executive Officer @ Excellent Webworld
Answered Mar. 1, 2018
If you want to start your own cryptocurrency then you will need to consider the following phases:
Create a Whitepaper
A good white paper is an essential aspect in order to launch a successful ICO. This will be a detailed document explaining how your project will work. Make sure that your whitepaper is reviewed by the experts so as to make your idea flawless.
Make An Impressive Website
A website is the core of your ICO campaign. In order to reach your potential investors and make them aware of your ICO, the best way is to build a website that gives a good impression. Ensure that your ICO website is convincing and informative enough and the landing page will contain all the essential information for a potential investor such as the team behind the project, the project documentation, legal information, caps, etc.
Advertise Your ICO
Just having a website is also not enough to get people involved in your ICO. To spread the word about your ICO, you need to advertise the ICO campaign.
Steve Austin, worked at Blockchain App Factory
Answered Jun. 8, 2018
There are multiple ways to create your own cryptocurrency. You can either create it from scratch or fork any of the existing coins. The blockchain technology is enormously advantageous and is used in various industries for security purposes. The only advantage over creating your coin is that you can include the specifications and features required. Forking will possess the features of the original coin. There are numerous companies offering the creation of coins.
Providing the details of the coin and its usage is a must for people to trust you. You need to be sure about what you offer. If this is confusing you, worry not. A pioneer in app development, Blockchain App Factory is here to help. They provide a custom solution based on the blockchain. The services offered include ICO development, marketing and more.
Carl Gunell, CEO/Cryptoasset Consultant at Maximin Management (1993-present)
Answered Jul. 3, 2017
You have a good idea for a solution to a problem that would benefit from a decentralized solution. You build a credible team, ideally develop a minimum viable product on your blockchain of choice, compose a whitepaper that describes your concept, legal framework, organization, team etc , and publish it on Github. Request feedback from the cryptocurrency community and construct your ICO offer. Your offer will propose how you will use proceeds, what rights “investors” will have, and how many new coins “investors” will get for an existing cryptocurrency.
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