Cryptocurrency can be considered the Peter Pan of the digital world. In spite of being more than 11 years old, cryptocurrency still attracts curiosity from a lot of people. It has transitioned from a state of people enjoying ignorance about cryptocurrency to people getting into the zone of FOMO when it comes to the same thing!
Blockchain technology has manifested into a lot of different entities, but in all of this, it cannot be denied that cryptocurrency is an evergreen manifestation of this technology.
What is cryptocurrency?
A cryptocurrency is a digital currency that does not have any physical representation. It enables the easy and anonymous transfer of funds, and it exists outside any existing system of censorship/control like banks and governments. If blockchain technology takes care to effect transactions and store information. The information on the basket cannot be altered without the alteration of all subsequent blocks, and even such alterations need universal consensus. This presents a highly secure option for currency exchange.
New crypto coins are created when a new block is created. A new block being created is the work of providing their processing power to solve a complex mathematical equation. As a reward for providing computational power, they are rewarded with no cryptocurrency. This was the start of the crypto revolution through the introduction of bitcoin in 2009.
The Advantages of Cryptocurrency
Although there are a few limitations like restricted acceptance, volatility, and non-reversible transactions, there are a lot of advantages that make a cryptocurrency a unique and lucrative proposition for the banking/finance world.
Cryptocurrency is completely decentralized, and this decentralization can be attributed to blockchain technology. This would mean that no one can dictate the rules for developers and owners. You are always in control and possession of your crypto money, and no institution like the bank or the government can claim their ownership or control over it.
Cryptocurrency transactions are extremely fast, at least in relation to the banking system that exists today. You can also carry out an unlimited number of transactions. This presents a massive advantage over the usual delay of days or weeks for international fund transfers with the existing banking system.
The decentralization does away with all the intermediaries involved in the execution of a transaction. This is one of the reasons why banks always charge a considerable transaction fee when it comes to international fund transfers. The establishment of trust enabled by third parties and intermediaries in the classic banking system is effectively taken care of by smart contracts in the crypto realm. This means that the cost of the transaction is considerably low.
The reach of cryptocurrency is limited to only buy the reach of the blockchain, and in effect, the Internet. Therefore, cryptocurrency has International acceptance and reach. This would also mean that the conversion fees that always accompany international transactions can also be completely eliminated.
Another important advantage that cryptocurrency brings to the table is transparency and anonymity. This is, by default, brought about by blockchain technology. You do not send money to a person but to an address. The address can be completely anonymous unless it is validated in some way in the public domain.
Creating a new Cryptocurrency
The process of creating a new cryptocurrency is rather simple and straightforward. All you need to do is copy the code of an existing crypto coin like bitcoin and make a few changes. While this might seem simple on paper, you will need to understand the implications of the change you’re making and why you are making that particular change.
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Therefore, to understand crypto creation, you will need to go through a process that helps refine and define your idea.
What is the purpose of your Crypto Coin?
Every crypto coin has been created having a purpose in mind. While bitcoin was created as an alternate avenue for decentralized finance, Ethereum was simply about powering smart contracts. You will need to define the purpose of your coin before you embark on creating one.
Is the coin compliant?
A coin finds its value only when it finds investors! To gain the trust of investors, you will need to have your coin audited properly. It makes more sense because of the intensity of scams that have been floating in the crypto space.
Is your white paper ready?
The white paper can be considered the single most important entity when it comes to cryptocurrency development. The white paper should be detailed to give every possible piece of information that your investors might be looking for. It should contain details on the token economics and the project roadmap. In addition, giving information on your team, their experience, and their expertise will help enhance your credibility.
The white paper might not be consumed by everyone but it is to be understood that whoever consumes your white paper is a highly prospective investor.
Have you got your promotion plan?
You will need to participate in certain forums and engage in some specific methods of promotion to enhance the visibility Of your trip to coin. It should be noted that you cannot engage in mainstream advertising methods because of the restrictions imposed by platforms like Google and Facebook. You should, therefore, resort to marketing, but that’s like airdropping, bounties, and search engine optimization in addition to email marketing and participating in cryptocurrency forums.
Do you have an active community?
A cryptocurrency is a long-term investment for a lot of people, and anything that has a long-term vision has to be sustained by a community. You will need to have a community of dedicated enthusiasts who will help answer questions about your coin. In addition to the community, it is also strongly recommended that you have a dedicated team to manage not only the support but your community as well around the clock.
The reason why so much focus has been given to the business aspect of cryptocurrency development is that the technical aspect can easily be taken care of by companies that specialize in crypto development. All you need to do is get in touch with the company that specializes in cryptocurrency and blockchain development. They will understand your business requirements and present you with perfect crypto solutions to mark your presence in this lucrative space!
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Crypto Development | A Complete Insight for Cryptocurrency Creation was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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