Have you ever wondered, How Hard It is to Create a Cryptocurrency & what’s involved?
If so, you might want to keep reading, or not…Haha.
Now there are several things to consider when it comes to creating crypto.
You will find a list of them below.
There are several issues to consider when creating a cryptocurrency and the effort needed. Whether to make a crypto coin or token, its benefits & how to portray them and how to market it. The management of the software team, building a community of users, and its costs should also be analyzed.
Before you create a Cryptocurrency, you should first lay out the underlying reason & benefits behind it.
Also along with the benefits you already have in mind, do some research and find out what advantages other popular Cryptos have to offer.
Since you might want to incorporate a variation of those into yours as well.
Then you need to come up with what is known as a USP (Unique Selling Proposition) and a VP (value proposition) that goes along with it.
Your unique selling proposition will be what your cryptocurrency has to offer that other cryptos don’t offer or at least a different or more efficient way of doing it.
Something that sets your crypto apart from the rest of the market.
Now to propose your value proposition (which is the characteristics that make your USP beneficial or valuable to an end user), you will need to be able to define and plainly explain it.
Once you have both of these you can use them to design & create your cryptocurrency and also build a strong community around it.
So a great way to stay competitive when creating a cryptocurrency is to have a community of users.
A group of users that believes in and is invested in the project.
A very driven community.
Now since the community would be part owners of the future crypto coin or token, they would be self-motivated to spread the word about it.
Although, unlike creating the actual cryptocurrency, which will involve computer programming and algorithms.
Developing a community will be centered around people, not only financially, but with their intellect and emotions too.
So you would be best served to find out what the desire & driving force behind someone wanting to be involved in a community of users and investors would be.
After that implement what you learned in order to create a community that is emotionally & financially invested in and excited about your project.
Then along with the community getting the word out initially; after it is created new purchasers will be more likely to stay engaged and give helpful feedback, if there is a thriving and robust community.
Most people use both words interchangeably “coin and token”.
However, in reality, coins and tokens are actually a little different.
So In order for someone to know whether they want to create a coin or a token, they must first know how they’re different.
You see coins are cryptocurrencies that are built on their own blockchain network.
Now there are several different blockchain networks.
For example, Bitcoin and Ethereum are two of the most prominent crypto coins and blockchain networks.
However even though most cryptocurrencies use blockchain technology, Blockchains can be different when it comes to rules and size, along with other things.
Coins are also created to be like regular money.
They can transfer value (payments from one entity to another).
Another purpose they have is as a store of value, which is mostly based on supply and demand.
Tokens are cryptocurrencies that don’t have their own blockchain.
They are built on top of other cryptocurrency's blockchain networks.
Now there are several networks for token creators to choose from.
Although, the Ethereum platform seems to be the most popular choice for creators.
Nowadays most crypto tokens are the ERC-20, ERC-1155, ERC-777, & ERC-721 standards.
That’s because Ethereum’s blockchain is one of the easier ones to be built on top of, and supports smart contracts as well.
Now crypto tokens are a little like crypto coins in that they can be used to transfer value.
However, tokens are also created to serve other purposes as well.
First, you have Utility Tokens which are designed to provide access to certain products or services.
Next, we come to Security Tokens.
Security Tokens represent an investment, in which the token obtains its value from an external asset such as real estate or stock.
You also have Non-fungible tokens which are made to represent one-of-a-kind items (e.g. artwork).
So, when a creator decides to make a cryptocurrency, one of the choices they face is either a coin or a token.
Now if they know how & want to put in the work or hire people to create and code their own blockchain network, then the coin is the way to go.
However, if they choose to use an existing network like Ethereum, then a token is where it’s at.
In order to create a cryptocurrency that might actually have value one day, creators will need some money upfront.
The cost of creating crypto can start out at about $2,000 and go up from there.
If they need a custom-built or feature-rich cryptocurrency, the price will grow.
It could conceivably go as high as $100,000 or a lot more, depending on the creator’s wants and needs.
If they don’t already have the capital, they will have to try and raise it.
There are a few ways they can attempt to do this.
Conventional loans, crowdfunding, and VC (venture capital) investments are a few ways to raise money.
If a lot of capital is required to get it to where it needs to be, and they already have some money, then an ICO (Initial coin offering) can be the way to go.
An ICO can cost anywhere from $20,000 and up, depending on the creator’s wants, needs, and the company they use for it.
However, some of the more successful ones have brought in tremendous amounts of money.
For example, In 2017 the ICO for Tezos brought in $232 million.
So whichever way the creator decides to go, some capital will be needed to achieve any real success.
When creating a cryptocurrency there needs to be someone designated to Manage the team of software developers.
That is unless the creator is developing it by themselves, which most people would warn against.
So here are a few ideas when it comes to managing a team of developers.
Acknowledge their skills and abilities and allow them to come up with solutions on their own.
They will stay more creative that way.
Don’t give them work that is not technically software related, such as administrative paperwork.
Try to be flexible with the requirements.
Don’t act like they are set in stone.
They should also be able to critique and tweak the requirements so that the finished product works like it’s supposed to.
Try to avoid constantly switching the developers from one task to another.
It is best to have each developer or small groups of them assigned to certain tasks and then leave it that way until completion.
Also, ask for feedback.
Speak with the developers directly.
Ask them if they see any problems and what might be done to fix them.
Under normal circumstances, whether it’s the creator or someone else, managing a development team will be a necessity.
Once the crypto coin or token is created, It will need to be marketed.
So from the beginning of the project, all the way through to the end, emails should be collected for a subscriber list.
Also, using LinkedIn to network can be a valuable tool, as well as lots of other forms of social media.
Podcasts and YouTube channels are also increasingly popular ways to reach people.
Another way to promote the proposed cryptocurrency is to send free tokens or coins to people's crypto wallets.
Furthermore, the creator or project leader can have a press release written and submitted to different platforms.
There are a lot of press release submission sites that can be used.
For example, there’s Ein Presswire, Newswire, and PRWeb just to name a few.
Now whether a creator or project leader uses some of these suggestions, all of these, or different ones altogether, the important point is to get the word out.
Video Version: How Hard Is It To Create A Cryptocurrency? A Simple Path!
Creating a Cryptocurrency doesn’t have to be hard. The creator, company, or project creating it just needs to know the steps to take, how to take them, and have the capital to get it done. One thing is to know what benefit the new cryptocurrency will offer. Also, It should be surrounded by a strong community. The creator, company, or project needs to decide if they are going to be making a coin or token as well. Furthermore, even though it doesn’t have to be hard to make, it will take some money to really get anywhere. The management of a development team will also be necessary. Then last but not least, we can’t forget the marketing aspect of it.