Cryptocurrency has become a phenomenal concept in today’s financial and business sectors. It has become a lifeline of economies around the globe promoting decentralized financial services.
At the time of writing, the global crypto market capitalisation is over $1.12 Trillion. Observing the immense growth of cryptocurrencies, entrepreneurs are looking to capitalize on the opportunity in the crypto market.
It seems the best time to create your own crypto coin. However, before you embark on your journey to create a crypto coin, there are a few important points you must consider.
The Need For Crypto Coin Development
A few decades back, no one would have imagined a transparent and decentralized financial ecosystem. Now we have cryptocurrencies that enable you to enjoy the merits of peer-to-peer, transparent, secure and cost-effective transactions.
Bitcoin, Ethereum and other cryptocurrencies are already a success in the market. Moreover, the global adaption of blockchain across the sectors has pushed the growth of cryptocurrencies. Additionally, today, you have NFTs, metaverse platforms and play-to-earn games that have brought cryptocurrencies into the mainstream.
What once was considered a buzz, is now being accepted as a digital form of money. A country like El Salvador has adopted Bitcoin as its legal tender. Other countries like the US, Canada, UK are coming up with bills to regularize the use of cryptocurrencies.
Experts believe cryptocurrencies are the future of finances. So, if you are looking to enter the crypto sphere, developing a successful crypto coin is the best option for you right now.
Things to Consider For Crypto Coin Development
Did you know that there are over 2000 dead cryptocurrencies?
Anyone can develop a crypto coin. But creating a successful crypto coin is not an easy task. Many projects fail in their initial stages due to a lack of community support, regulatory compliance and other flaws. According to a report, 46% of the projects failed to raise enough funds in their ICOs and dried out after the launch last year.
So how can you ensure the success of your crypto coin development?
Here are a few crucial points that you must consider to successfully create a crypto coin.
Identify Your Use-Case
The first step is to identify the use case of your coin or token.
Cryptocurrencies are majorly categorized into altcoins, tokens and stablecoins. Tokens are then divided into security tokens, utility tokens, asset tokens and NFTs.
Each one of them has its own specific purpose. It is you who has to decide which coin or token you wish to create and for what purpose.
Decided On A Strong Project Idea
Not every project is successful. Your project must have a unique vision and useful features to stand out from others and sustain itself in the market. For example, Golem allows users to rent their computing power in exchange for fees in GNT tokens.
For this to happen, you must clearly define the purpose of your project.
Pick the Right Blockchain Platform
The next vital step to creating a crypto coin is to select the consensus mechanism and blockchain platform. You will have to decide the consensus protocol for your coin. You can either choose PoW or PoS.
If you have selected the Proof of Work consensus mechanism then Ethereum is the best blockchain platform to create your crypto coin. On the other hand, in the case of Proof of Stake, you can go for NEO, Binance Smart Chain, or EOS.
Hire The Right Development Company
Hiring an experienced and skilled crypto coin development company is important for your project. We have a team of highly qualified and expert developers who will help you develop and launch a secure crypto coin as per your business needs.
Planning Coin Distribution
The majority of the crypto coin projects need the support of investors to sustain. These investors invest in the project expecting to receive tokens or coins in return.
Here, you will have to decide how you can systematically distribute rewards among your investors. If you have a small group of investors, you can send coins manually from your wallet. Or else you can take the assistance of a blockchain development company to develop a secure and automated tool to transfer rewards.
Fixing Security Issues
You should always keep in mind that you cannot change the smart contracts after deployment. That is you should always conduct intensive security checks. It is to ensure that you do not end up with vulnerable smart contracts that anyone hacks at any time. A hack prone smart contract will do away with the security and trust of your project.
Ensuring Regulatory Compliance
The popularity of cryptocurrencies has also given birth to several regulations in different countries. Lack of regulatory compliance may lead your crypto coin project into a mess.
That is why you should always refer to the compulsory rules applicable to your business and attain a proper license.
Promote Your Crypto
Promoting your crypto coin before its launch is necessary to attract the attention of investors and the community. Every project needs a pool of investors and community support to succeed.
Two successful ways of promoting your crypto coin are:
- ICO bounty programs
- airdropping coins
How To Create A Cryptocurrency?
Crypto tokens are built on an existing blockchain network while the crypto coin requires developing a new blockchain. Ethereum is widely used to create ERC-20 tokens. Similarly, you can also consider other blockchains such as Binance Smart Chain (BEP-20), NEO (NEP and NEP-5), Tezos (TZIP-12) etc.
You can create a cryptocurrency in three ways:
- Create your own blockchain and native coin
- Modify existing blockchain
- Establish a token on an existing blockchain
Out of all the above three options, creating your own blockchain is the most preferred one. Most startups and businesses choose this option for its flexibility and freedom to configure as per your business goals.
Creating your cryptocurrency requires a great deal of technical expertise, market experience, legal knowledge and business-oriented vision. That is why, it’s always advisable to consider the above mentioned points before starting your crypto coin.
If you are looking to build your crypto coin and tap into the crypto sphere, partner with us. We offer a wide array of business focused crypto coin development services to fulfil your business needs. Reach out to our experts today.