The answer is yes. You can create your own cryptocurrency. It’s not a rocket since, but it isn’t easy as well. You need to put a lot of money and hard work into that. At the same time, you also need to have a clear vision for your currency. Here’s how you can create your own cryptocurrency:
What’s Your Objective
The first thing that you need to consider is what’s your objective in creating a new cryptocurrency. For example, bitcoin was created for the decentralization of the fund. So, first, you have to define the objective you have. Then you must find a name, logo, website, and whitepaper for your cryptocurrency that will state the reasons why you create this cryptocurrency and what you want to achieve.
In this step, you have to give your cryptocurrency consensus on the blockchain. Now, there are two types of consensus mechanisms that you can have; Proof-of-work (PoF) and another one is Proof-of-Stake (PoS). The POF is where miners compete with each other and add new blocks to the blockchain and get cryptocurrency as a reward. In PoS, validators rely on their cryptocurrency for verifying transactions.
If you have chosen which consensus mechanism you will use on your cryptocurrency, then the next step for you would be to finalise the blockchain platform that you are going to use to create your cryptocurrency. If you are using PoW, the n Bitcoin blockchain platform is the most obvious choice for you. On the other hand, if you want to use PoS, then you can use the Ethereum blockchain platform or Speedy EOS, depending on your preference.
Time to Create Your Node
All set; it’s time to create a node. Now, a node is a computer that will have the blockchain copy and software stored. It is created so that all the transactions can be validated and managed on the blockchain. However, if your crypto uses the PoW consensus mechanism, then you have to join a mining pool where all miners will work together.
Creating a Wallet Address
The next stage is to create a unique wallet address for your cryptocurrency. Now, you will need a wallet for a very simple reason which is to store your fund. I mean, people will send all the funds to your wallet address when they buy your cryptocurrency. So, it has to be unique. You can create a wallet address from an online service or with the help of the software that you have on your computer.
Internal Structure Design
You have to design the internal structure of your cryptocurrency now. That is because it doesn’t have many things like transition format, consensus mechanism, or protocol. You have to design them. At the same time, you have to create the coin’s supply, which means how many coins you want to create. I suggest you create limited coins. That is because people will be able to buy them all. And if you create many, then they won’t be able to do that.
You must then integrate the API on your cryptocurrency. Now, API, which stands for Application Programming Interface, will allow all the application software to interact with each other. Suppose you are using the PoW mechanism, then you will need Bitcoin API. It will help your crypto to interact with the Bitcoin Blockchain.
Legalization of Your Cryptocurrency
You have to make sure that your cryptocurrency is legal. In order to do that, you have to create your company and get a license from the government. You should also operate under government rules. And you must also register your crypto under the Financial Crimes Enforcement Network.
Your cryptocurrency is new, so you need to promote your crypto. You can do that with various campaigning where you can give away your crypto for free. Giving away free crypto to all early users it’s the most beneficial tactic.