You can find the term “Cryptocurrency” all around the headlines, blogs, everywhere. Why Cryptocurrencies are so important? How are they helping investors? The answer is Cryptos are secure, trustful and transparent and cuts down the need for third-party in between!
- There’s a post every 3 seconds on social media about Bitcoin alone.
- Men are likely to have bought Cryptocurrencies than women with a comparison of 3.66% of men to 2.16% of women.
What is Cryptocurrency?
A Cryptocurrency is a digital currency which is being encompassed of encryption techniques and is being used to verify & execute the transactions. To put it simply, cryptocurrencies allow people to exchange money electronically as easily as sending a mail or text.
Bitcoin, the first decentralized new cryptocurrency was invented in the year 2008. Decentralized here means that there is a public ledger where the transactions are being stored and recorded. This is what called a “Blockchain”.
Cryptocurrencies are being classified into two categories:
Coins are the one which operates independently of any other platform. In other words, coins have their own platform called Blockchain.
Tokens require an existing platform to operate. Tokens are also used to fund the operating expenses required to host it as service.
To make it more clear, here are the major differences between Coin and Token.
DIFFERENCES BETWEEN COINS AND TOKENS
- Coins are a part of Blockchain while tokens operate on existing blockchains.
- Coins can be used in all types of industries while tokens are being restricted to a few.
- Coins can buy tokens but tokens can’t buy coins.
Steps to build your Blockchain Initially:
- Frame your Use-Cases
Right off the bat, define the business objectives clearly. It is important to check whether your business has footprinted in areas like Smart Contract, security, authentication.
- Pick out the most suitable Consensus Algorithm
In order to make your blockchain operate smoothly, it is important to check that participating nodes agree on which transactions are authorized and can be added to the block. There are different types of consensus strategies such as Proof of Stake, Round Robin, Redundant Byzantine Fault Tolerance, etc. Depending upon your use case, select the one which fits right for your business.
- Figure out the suitable Blockchain platform
There are many Blockchain platforms available in the market and most of them are open-source and free. Selection of your Blockchain platform depends on the consensus mechanism you have chosen.
Here is the list of popular Blockchain platforms:
- BigChain DB
- Designing the nodes
A Blockchain exists in the block of data. These blocks of data are stored on nodes. To put it simply, imagine blocks are the wall while nodes are bricks in it. This is an interconnected device which is supporting the blockchain in handling the transactions, right from storing the data to verifying and processing it.
Therefore, while designing the nodes, make sure you have answers for these questions:
- What type of Blockchain solutions are you designing? Public, private or hybrid?
- Where will your nodes be hosted? On the cloud, on-premise or both?
- Decide on Operating systems such as Ubuntu, CentOS, Debian, Windows, etc.
- Figure out the hardware details such as processors, memory, disk size, etc.
Design the nodes such that they satisfy all these.
- Planning the Blockchain’s Internal Architecture
This is the crucial step since it cannot be altered once your blockchain starts running. These are a few factors you should give importance to:
- Permissions: Define who can access your data.
- Multisignature: Define the number of your keys on Blockchain.
- Address Format: Decide how your Blockchain address should be.
- Key Format: Decide the format of keys generated for transactions.
- Building the API’s
There are platforms which come with Pre-API while some aren’t. Therefore, make sure whether your Blockchain platforms provide API or not. Here are the major categories of Blockchain API that you would need for:
- Generating a key pair and address.
- Data Authentication through digital signatures.
- Smart Contracts.
- Smart Asset Management.
- Designing the Front and Back End
Remember interface is the core factor which ensures smooth communication between blockchain and the user base. Therefore, you have to choose the programming language to design your interface.
When it comes to front-end interface, you can make it intuitive with programming languages such as HTML, CSS, Ruby on Rails, etc.
On the other hand, choosing external databases such as MongoDB, MySQL are also important.
Creating your own Cryptocurrency
Now it is time to have your own cryptocurrency. You can easily issue coins or tokens through cryptocurrency.
Meanwhile, decide on the features of how your cryptocurrency should be. Here are the famous cryptocurrencies:
This is the first and most widely used cryptocurrency globally. There are more than 16.8 million bitcoin tokens in circulation.
Feature: Easy to store, Fungible, Widespread.
Ethereum is the second largest cryptocurrency accepted across the globe. There are around 10 million Ethereum tokens circulated worldwide.
Feature: Accepts Initial Coin Offering, Built with Decentralized Ledger Technology.
This is generally called “Bitcoin’s little brother”. Being a peer-to-peer cryptocurrency, it executes faster with the token limit of 84 million.
Don’t Forget to Make your Cryptocurrency legal!
As the laws are prevailing in most of the countries, you should make your cryptocurrency legal.
Success Stories of Cryptocurrency
- Vitalik” Buterin: CEO of Ethereum
Vitalik is a Canadian-Russian who started with Cryptocurrency at the age of 19. He was introduced to the Blockchain industry by his father initially. Right off the bat, he learned everything about Bitcoin. But he had a keen interest to develop a decentralized element and he started researching more on that.
He got an idea on Ethereum when he met two companies who were issuing tokens and smart contracts directly on Bitcoin with Blockchain. Then he had an idea of creating a cryptocurrency whose purpose is to promote the development platforms for new cryptocurrencies, smart contracts, tokens, etc. Therefore he drafted and release the Whitepaper in the year 2013. Later in the year 2014, Ethereum raised approximately $18.3 million and emerged as the largest cryptocurrency.
- Charlie Lee: CEO of Litecoin
Charlie Lee was the pioneer in the crypto space and he first came across Bitcoin in 2011. Prior to the discovery of Bitcoin, he had been actively trading with gold. With his great passion for Economics, he wanted to create his own cryptocurrency.
Initially, he started with Fairbix which isn’t a success since it was encompassed with rumblings and software bugs. Fairbix was using Proof-of-Work as the Consensus mechanism which he later used to create Litecoin. After the failure of Fairbix, Charlie released Litecoin to the world. Litecoins resolved the problems with Fairbix by making changes to hashing protocols, UI/UX, block transaction time, etc. Litecoin is now one of the best cryptocurrency.
Why it is the best time to invest in Cryptocurrency?
According to CoinDesk, the cryptocurrency trading volume has cranked to $185.89 billion in just 5 months. This shows why investing in a cryptocurrency can reap profits.
Here are the best three cryptocurrencies you can invest for now:
Right now, Bitcoin is still the best cryptocurrency to invest. This has been the assets of the most valuable investment across the globe. Moreover, young investors have a great passion to invest in Bitcoin more than others.
Why it is the right time?
- The highest market cap of all coins.
- Rich historical data for its price fluctuations.
This is yet another best cryptocurrency to invest right now. Being a smart contract platform, it enables decentralized applications to become a reality.
Why it is the right time?
- More than 200 dApps are created on this platform.
- Ripple (XRP)
Being the third largest cryptocurrency, it has managed to pick up from the year March 2017.
Why it is the right time?
- XRP has a large fan base.
- Transactions are confirmed instantly with no issues on scalability.
Marketing your New coin
As you know Online Marketing has a very big role-playing with your Products success. You definitely need to get in rapport with Digital Marketing Expertise who should cross various stages of Implementing Successful Campaigns previously!
Being yourself a Crypto Owner, you need to guide the marketing team on your target audience and the Expected Metrics. Only when you are clear with your requirements, the communication with you and your marketing team will get smart.
These are the Metrics you need to concentrate before you get started
- Target Countries
- Target Age
- Target Interests (For Audience you are looking for)
- Your Competitors
- Your Conversion Metrics
- Timeline to Reach Targets
And here are the major platforms Marketing Department will Concentrate to Promote your coin in order to penetrate the maximum number of targeted users.
- Email Marketing
- Content Marketing
- PPC Campaigns
- Bounty Campaigns
- Video Marketing
- Search Engine Marketing
- Social Media Marketing
- Crypto Based Forum Participation
- Presence in Top Listing Sites
If you have a very good idea, this is an ideal time to get started. There are almost 1500 cryptocurrencies which are available in the current market. Investors are searching out the currencies which can bring in profits for them. Therefore, to make your currency stand out it is a must that you have a strong purpose behind!
If you still have queries on how to create a new cryptocurrency, you can reach top Cryptocurrency Developers out there in the market. Before choosing your right team please go through their previous portfolios and online presence.