How to Create Your Own Cryptocurrency

During the last decade, the global economy was rocked with a grave financial crisis characterized by crashing stock markets, hyperinflation and high unemployment rates. This led to the Recession of 2008, which lasted for almost two years; it was “the longest period of economic decline since World War II” . But now with the Covid19 situation, a new economic depression is coming. Experts feel that this situation can be a big boost to the entire crypto market. Cryptocurrency will start seen main stream adoption and the need for a global currency arises. Many startups and business will create a cryptocurrency of their own to raise funds globally to grow their business.

Brief History of Cryptocurrency

In 2009, Satoshi Nakamoto created the world’s first digital, peer-to-peer currency Bitcoin. At the time, this move was a much-needed response to the collapse of the global financial system. Nakamoto had published the whitepaper Bitcoin: A Peer-to-Peer Electronic Cash System a year earlier, presenting the world with a way out of the mess created by the centralized financial institutions.

At the time of writing, there are over five thousand cryptocurrencies in existence, many of which enjoy vast popularity among a dedicated group of enthusiasts and investors.

Coins and Tokens

A coin is a digital asset that’s native to its own blockchain, while a token is created on an existing blockchain. Coins are mainly used as a means of transferring value between various parties. Tokens, on the other hand, have far-reaching uses besides digital currency. There are various types of tokens:

Utility tokens are designed to be spent within a particular blockchain system, they are digital tokens that are issued to raise funds for the development of the cryptocurrency and can be later used to purchase a good or service offered by the issuer of the cryptocurrency. An ICO Script can be used to setup a dashboard to manage these tokens effectively.

Security tokens are basically tokenized fractions of a company’s value, much like being a shareholder. Investors using security tokens can anticipate the conservation of their ownership stake on the blockchain ledger and ensure prompt payment of their dividends.

Asset-backed tokens have their value pegged to real-world, tangible assets, such as real estate, precious metals, or other economic commodities. Creation of asset-backed tokens helps to tokenize and distribute illiquid assets (e.g., gold, land, artwork, etc.) to investors.

Equity tokens: represent a share in the primary company. Holders literally own their given percentage of the total enterprise. Creation of equity token helps to tokenize and distribute your company’s stocks to interested shareholders.

Stablecoins: cryptocurrencies created to minimize the price swings that occur in a crypto asset and offer price stability. They are usually pegged to fiat currencies, the price of your stable coin will always be the current price of the backing fiat.

Of course, you can get on the blockchain bandwagon and create your own cryptocurrency.

But how exactly would you do that?

One of the two primary ways of creating a cryptocurrency is building a token on an existing blockchain—Ethereum, EOS, or other dApp platforms. The most popular blockchain platform for building dApps (and creating tokens) is Ethereum. Tokens built on the Ethereum blockchain comply with the ERC-20 token standard.

Previously, you’d need to have extensive knowledge of blockchain development and cryptography to create a cryptocurrency. Well, not anymore.

AI-powered Cryptocurrency Creation service

BitExchange is an intelligent platform built to enable everyday people (say, for instance, you’re not a blockchain developer) to create a fully-featured cryptocurrency—be it coin or token—easily and with little effort.

Using BitExchange’s AI-powered cryptocurrency creator, you can easily create any type of token. All information regarding your asset would be collected via a series of questions. The questions will also figure out what type of asset you would want to tokenize, the total supply you plan on, the capital you are planning on raising, the countries you are planning on marketing in etc. Based on your input, the tokenizer will generate a smart contract and create a respective number of cryptocurrency coins. Wondering how to make a cryptocurrency that is backed by assets? You can now make them in just a few clicks.

Once your cryptocurrency is created, you’ll get an intuitive ICO dashboard and secure wallet, and then you can start marketing your ICO worldwide. Once your investors transfer funds to the ICO smart contract, you can verify the payment from your admin panel and the cryptocurrency equivalent will be automatically transferred to their wallets.

Token offerings are usually delicate events, due to the legal implications and unregulated nature of cryptocurrency. All tokens created on BitExchange’s platform are fully compliant with regulatory frameworks in a lot of regions. Once you decide the token type, you simply confirm its compliance with the securities regulation of each country you plan to ICO in.

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