Cryptocurrency is a digital currency or medium of exchange that utilizes cryptographical functions to perform financial transactions. It uses blockchain technology (a structure that records transactions) for functionality to achieve decentralization, immutability, and transparency.
Perhaps the most crucial feature of cryptocurrency is that it is not under the control of a central authority. Blockchains are decentralized, thus avoiding any interference from a governing body. Recent efforts from the US Securities and Exchange Commission (SEC), however, may soon result in certain regulations being imposed.
Cryptocurrencies can be conveniently exchanged between two parties through the use of public and private keys. Their advent has revolutionized the world of online transactions in the 21st century. Bitcoin, in particular, has become an incredibly popular cryptocurrency over the past few years. In fact, over 1,384 cryptocurrencies, including Ethereum and Ripple, are currently being used worldwide!
People often tend to confuse coins and tokens when it comes to cryptocurrency. Both of them can be classified as units of a blockchain, but their key difference is somewhat simple. To create a token, you’ll need an existing blockchain. For a coin, however, you’ll have to build a blockchain platform from scratch!
How can you create a successful Cryptocurrency?
It is fairly obvious now that if you’re looking to create your own cryptocurrency, a token would be the easier choice. Regardless of which type you decide to work on, starting a new cryptocurrency is bound to take a lot of time and effort. Here’s what you’ll need to get started:
- A good idea: Make sure that your new token/coin has a defined purpose.
- Trust: You need to gain the attention and trust of potential audiences.
- Coding skills: Hiring a coder is always an option, but a basic understanding of the code would be an enormous plus-point.
Let’s take a look at a step by step guide for beginners looking to enter the extensive cryptocurrency markets of 2020:
- Funds: The best way to raise funds for your crypto-project is through Initial Coin Offerings ICOs, which are the crypto industry’s alternative to Initial Public Offerings (IPOs). However, unlike IPOs, investors do not become owners of the currency. They do, however, receive newly issued cryptocurrency tokens.
- White Papers: Raising funds through ICOs may seem simple, but convincing investors does require a certain level of effort. Creating a comprehensive white paper, which is a document detailing the idea and its proposed execution, is the foremost thing that needs to be done.
- Development Team: Your development team usually decides the fine margins between success and failure. Be sure to hire the right group of talented and experienced developers to do the job!
- Smart Contracts: A smart contract is a digital contract that runs on blockchain. It differs from traditional contracts in that it cannot be changed, and it is executed automatically. Creation service is integral to working with an ICO.
- External Audit: Having a professional external audit done is crucial to your ICO’s credibility and legitimacy.
- Marketing: Lastly, be sure to effectively advertise your cryptocurrency and ICO through social media, blogs, emails, sponsors, etc.
Making a successful cryptocurrency is, by no means, easy. Having the right knowledge before trying to do so is essential and Optimize to Convert will help you gain that! Be sure to keep the above steps in mind; your chances of success will be much higher.