how to create your own cryptocurrency and make money
In theory, anyone can create a digital currency, but before that, they must be armed with the necessary knowledge and resources, as well as the correct and effective method to create a digital currency in the right way.
It should be known that the matter does not end with the creation of the currency, but rather with the continuous difficulty of the following procedures in terms of promotion, listing on the stock exchange, maintenance, and continuous updates.
How to create a digital currency
1. Creating a new Blockchain
Creating a new blockchain from scratch requires great cryptography skills and is the hardest way to create a digital currency. There are many online courses that can help you through this process, but they assume a certain level of prior knowledge.
2. Create a fork of an existing blockchain
Creating an existing blockchain can be much faster and less complicated than creating one from scratch. This process involves taking open source code found on GitHub, modifying it, and then releasing a new piece with a different name. The developers of Litecoin, for example, created it by forcing Bitcoin and then splitting it into different coins like Garlicoin and Litecoin Cash.
3. Use an existing platform
You need to create a digital currency or token on an existing platform like Ethereum. Several new projects are generating tokens on the Ethereum network using, for example, the ERC-20 standard.[1]
What is the difference between a coin and a token?
Both fall under the general term “cryptocurrency,” but while a currency like Bitcoin or Litecoin exists on its own blockchain, a token like the Basic Attention Token operates on top Of the well-established blockchain technology infrastructure.
Tokens have their own uses and values. Cryptocurrencies are typically used to store, create, or transfer wealth, while tokens are a type of contract that performs a specific task for blockchain implementation. The Basic Attention Token, Tokens can also act as a contract or a digital copy of something, like event tickets or loyalty points. For example, non-fungible tokens (NFTs) are used to represent a single piece of digital property.
Seven steps to creating a digital currency
1. Define the consensus mechanism
The consensus mechanism is the protocol that determines whether or not a network allows a particular transaction. All nodes must confirm the transaction for it to be executed, this is called "compliance".
2. Blockchain Choice
A token needs a place to live, so defining the blockchain space is a crucial step. This choice depends on your level of technical skill and the objectives of the project.
3. Contract creation
Nodes are the backbone of any technique. As a cryptocurrency originator, you need to define how your nodes will work, and what will the hardware details look like? How will hosting work?
4. Create a Blockchain Infrastructure
You need to be 100% sure of all the functionalities of the blockchain and the design of its nodes before you launch the coin, you won't be able to change or modify many things once the main net is launched.
You can rely on a testnet to verify simple things like formatting a digital currency address to more complex things like integrating an inter-blockchain communication (IBC) protocol to allow a blockchain to communicate with other blockchains.
5. API integration
Checking if the newly created digital currency has APIs can help you highlight it, or you can use third-party blockchain API providers who can help you with this step.
6. interface design
There is no point in creating a new digital currency if people are having trouble using it. Web and FTP servers should be up to date and programming should be done on both front-end and back-end with future developer updates in mind.
7. digital currency legalization
This step is very important because it led to the failure of many who launched their cryptocurrency in 2017 and 2018.
Cryptocurrencies were strictly prohibited at the time, and recklessness in this step led to fines or criminal prosecution, depending on the circumstances.
Before launching a new currency, you should thoroughly research the laws and regulations pertaining to securities offerings and related topics. You can hire a lawyer to guide you through this procedure.
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