Transform Ideas into Reality: Build Your Custom Crypto Market Today.

Transform Ideas into Reality: Build Your Custom Crypto Market Today.

Cryptocurrencies and any other decentralized assets bestow an ever-changing plethora of blockchain-powered use cases, including decentralized finance (Defi), Web 3.0, Artificial Intelligence, and the Internet of Things (IoT). Being a crypto enthusiast, if you have ever thought about tracing the footsteps of Satoshi Nakamoto or Vitalik Buterin, then you must be prepared for a mind-numbing journey. Due to the urge to create your own cryptocurrency recently we have seen the evolution of numerous blockchain forks.  

When creating your own cryptocurrency, you must be aware of the two options: develop your own cryptocurrency or a token. A token functions on an existing network, while a coin functions on its own blockchain network, however, both depend on blockchain technology for decentralization and security. Basically, if we put it in simple terms, there are three primary ways to create a cryptocurrency, devising your own blockchain network, modifying any of the pre-existing blockchains, or developing on top of any present blockchain. 

Moreover to choose the right option one must identify the factors involved such as use cases, tokenomics, coding skills, and legality. To grasp the factors involved in the process, let’s take a look at each of the factors individually. 

How to create your own cryptocurrency 

Herein, we offer a step-by-step view of the general process. To keep the steps simple, we will assume you’re creating a cryptocurrency with a real vision and purpose. 

Selecting a consensus mechanism: 

Choosing a consensus mechanism is one of the foremost points to take care of. Select a mechanism that aligns with your goals and requirements like Proof of Work (PoW), which is computation-intensive, or Proof of Stake (PoS) which is energy-efficient. Nevertheless, there are various networks developed recently, that are innovative like Solana’s Proof of History (PoH), which increases the processing speed of transactions, further improving the throughput of a blockchain network. 

Selecting your own blockchain network: 

Unless you are creating your own blockchain network, you can opt for any of the existing blockchain technologies. Choosing the right blockchain allows the system to track the records and hold the transactions accountable. Thus, you can select from a plethora of options such as Binance Smart Chain, Ethereum, NEM, EOS, and many others. 

Publish your Whitepaper

Now this is the time to put all the information in a manifesto. Research other successful blockchain whitepapers and the results they have got and figure out what went wrong in the use cases. Moreover, compare their tokenomics, and network emissions with their post-launch results. After the comparison, create the tokenomics for your own blockchain and put it in a whitepaper, publishing it on your social media, and your website. 

Create the nodes 

The building blocks of any blockchain network are its nodes. Nodes store and verify your transactions. Also, get the important hardware such as the processors, disk size, and memory if required. 

Develop the internal architecture 

It’s time to focus on the blockchain’s rules, parameters, and internal architecture, including its private and public key format, how the crypto asset will be issued, and permissions. While developing these factors be very sure to consider these factors as they cannot be modified without a software upgrade once the network is up and running. 

Design the user interface 

Devise an Application Processing Interface (API), a user-friendly interface to help your blockchain communicate with its users and community. However, it depends on the complexity of your blockchain network that you may require mail, FTP servers, web, external databases, and front-end programming languages, including HTML5, C++, Java, Python, and Javascript. 

Blockchain requirement to develop a cryptocurrency 

Many crypto enthusiasts are still living in doubt about whether they require a deep knowledge of blockchain. So, the answer to this question is ‘YES.’ For this let’s first understand what blockchain can do. As we know blockchain is a distributed ledger shared among different computer nodes. Moreover, it can be used not only in cryptocurrency but various other also can be used to make data immutable. 

Because there are no third parties involved, including auditors and other humans increasing the cost. Once a block is created in cryptocurrency, there is no way to alter or modify the block, the only trusted entity is the user or program who entered the data. It functions like a cell in a spreadsheet. Once the transaction information is completed, it is run through an encryption algorithm, further creating a hash. 

Moreover, because of the decentralized nature of blockchain, all the transactions can be transparent with the usage of blockchain explorers, or personal nodes that permit to view any transaction live. Thus, it means that you can trace the Bitcoin transaction wherever it goes. Also, today more than 23,000 cryptocurrencies are experimenting and running on the blockchain network. Hence, it turns out that blockchain is very much needed to create your own cryptocurrency. 

Difference between a coin and a token 

Coins are cryptocurrencies belonging to a particular blockchain. Furthermore, they are not dependent on other chains and cannot be utilized by any other chains. Being resistant to censorship, fraud, and hacking coins are protected by encryption and cryptography. However, a token is built on another blockchain and depends on the blockchain for its operations. One of the foremost importance of tokens it give voice to the decision-making process of a decentralized application (dApp). 

Tokens can make use of cross-chain communication and compatibility. Because they are built on a blockchain, unlike coins tokens can be supported by various blockchains. Thus, there are many benefits to issuing a token instead of a coin which requires you to develop your own blockchain and secure it. An ERC20 token can be issued in minutes and can leverage the benefits of the Ethereum battle-tested security, while also having access to the community of users. 

There are numerous coins, including Cardano (ADA), Tron (TRX), and Chainlink (Link), that were introduced as ERC20 tokens, however, later transformed to their into their own mainnets.

Does cryptocurrency require coding skills?

If you want to create a crypto coin, it typically requires some understanding of coding skills and technical knowledge because it necessitates the development of a blockchain network or the modification of a pre-existing blockchain. Nevertheless, there are various platforms and services that can help you in developing your own cryptocurrencies. 

Let’s give you examples of some prominent ones: 

• Ethereum: The blockchain network bestows the creation of custom tokens, often known as ERC20 tokens without the knowledge and skillset of extensive coding. Platforms, including MyEtherWallet, and TokenFactory can help crypto enthusiasts create your own cryptocurrency. 
• Binance Smart Chain: In a similar manner Binance Smart Chain also allows the creation of custom tokens. If you want to launch your own token you can make use of the platforms, including TokenPocket, and PancakeSwap. 

Besides, there are numerous platforms available for the creation of a cryptocurrency without putting as much effort as you would have gone through while create a crypto coin from scratch, however, one must be vigilant and careful while selecting any of these services. Though these technologies permit the development of a cryptocurrency, however, security and functionality cannot be compromised. Hence, it is significant to have a basic knowledge of the underlying technology. If you are serious about creating your own cryptocurrency. You must hire a technician and a person with deep knowledge of coding and blockchain, which can strengthen your crypto.  

Additionally, creating a successful cryptocurrency involves various other steps, including research, legality, marketing, and engagement of the target user base based on your use case. 

Financial investment needed for the creation of a crypto coin

Devising your own cryptocurrency depends on various factors, including the duration of development, the expertise of the team, and the complexity involved in the project. Creating a standalone token on ERC20 will cost a few thousand dollars, covering the auditing charges, and smart contract development. However, if you want to create your own blockchain from scratch, it can cost from thousands of dollars to millions depending on the scalability of the project, security, and desired features.  

Moreover, various factors contribute to the overall budget of the project, including hiring a blockchain developer or a team of developers, legal consultations for compliance, security experts, building an infrastructure for the project, and marketing costs. To ensure the security and functionality of the coin, the budget for auditing and testing must be taken into consideration. Furthermore, regulatory compliance costs may arise due to the jurisdiction of development. According to the evolving nature of the technology, and regular updates the expenses may increase.

Ensuring the security of your crypto coin

Decentralized assets like Non-fungible tokens (NFTs), and cryptocurrencies are gaining momentum in a digital economy, wherein every person wants to gain the pros of decentralization, and transaction security. Cutting out the central authority, and reducing processing fees for fund transfers, however, without the existence of the central authority, digital cryptocurrency balances are prone to get entirely decimated by a computer crash, or any unexpected events like hacks. 

According to a report published by Chainanalysis, a crypto forensics company, published that 2022 was the largest year when it comes to crypto hacking with 3.8 billion stolen from cryptocurrency companies. In fact, in the month of October alone $775.7 million was stolen from firms in 36 different accounts. To make your own crypto coin security is of utmost importance for a trader or an investor. Thus, there are four key factors to create a solid security infrastructure:

• Seed generation: A cryptocurrency infrastructure requires a set of secure development of cryptographic keys and seeds. Pay close attention to unguessable numbers, and confidentiality while examining your organization’s security measures. Confidentiality makes sure that the upgraded seeds and keys are not obtained by any unauthorized entity. While the usage of unguessable numbers shields against any unintended party. 

• Wallet and key usage: Another one of the primary points to develop a strong security infrastructure. Unintentional disclosure of the wallet holder’s key or identity due to lost or stolen keys can be avoided by using practices like;

1. Make the usage of keys or seeds only in a trusted environment 
2. Making it a necessity to use two signatures to transfer or use funds from the wallet.
3. Getting a unique address for each transaction that occurs 
4. Cross-checking the backgrounds, identifications, and references of all the key/seed holders 
5. Storing and maintaining keys with a signing authority at different locations. 

• Storage of keys: A cryptocurrency firm must maximize the security of its cryptocurrency keys. These keys must be stored with appropriate physical locks, secret sharing, and encryption. Moreover, backup keys are also significant and they must be physically stored in a paper, digital, or any other format that protects it against environmental risks. 

• Key compromise policy: Though it is a relatively new concept, however, after numerous cyber attacks and the stealing of billions of dollars worth of crypto, a key compromise policy must be in place. A process that ensures the steps to be taken in case of theft of cryptographic keys/seeds or its holder gets compromised.  Moreover, crypto firms must develop proof of reserve funds, for the purpose of compliance. Besides, Audit logs are a very crucial tool to help comprehend the occurrence of unexpected security incidents and rapidly resolve any inconsistency in the system to get back the information system to a consistent, and workable state. 

Legalities involved in creating a crypto coin: 

Many times while creating your own cryptocurrency, crypto enthusiasts delve into the self-doubt of whether it is legal to create a crypto coin. This is one of the foremost questions asked by a lot of people. Yes, it is completely legal to create your own cryptocurrency, however many countries have put a ban on crypto transactions. 

For instance, in India, cryptocurrencies that are utilized as a payment method, there are no such rules and regulations laid down by the Government of India (GoI) for settling any crypto-related disputes. Thus, trading in the country is completely at the investor's own will to take the risk. However, the Finance minister of the country, Nirmala Sitaraman has many times raised the issue of taxing virtual currencies, and not only her many other intellectuals have also embraced the taxing of cryptocurrencies. Nevertheless, there is no legal clarification or manifesto passed on the matter of the legality of cryptocurrencies. 

As per the Union Budget of 2022, the Government has taken a clear stance on the taxing of virtual currencies by imposing a 30% tax on gains from cryptocurrencies and a 1% tax charged at source. 

Programming languages used to create your own cryptocurrency: 

The top fifteen programming languages that are used by the veterans in the crypto and blockchain industry are: 

• Solidity: A language invented by the mastermind of Ethereum blockchain, Vitalik Buterin is an amalgamation of JavaScript, C++, and Powershell. It is one of those programming languages that a crypto enthusiast must learn especially if you are developing decentralized applications (dApp) or looking forward to getting into the Initial coin offering (ICO) game. 

Hence, it has a plethora of benefits, including its development-friendliness, programming typed statically, accurately precise, the possibility of property inheritance in the smart contracts, and its accessibility to debuggers, JavaScript, and other programming tools. 

• Java: A language to be used in the Android app development and backend development is considered the top programming language for sophisticated smart contracts, and decentralized applications (dApps). The major benefit of using Java is its robust backing to object-oriented programming (OOP), ease of clearing the memory, and availability of ample libraries. Moreover, some of the best blockchain solutions created using Java include NEM, NEO, IOTA, and Hyperledger Fabric. 

• Python: Python has ruled the world of IoT app development, and the development of network servers, and app development is also ruling the world of the Blockchain-as-a-service realm. Because of its exceptional features, including its easy-to-grasp Python programming language for blockchain development, perfect for both the scripting and base approaches, it offers access to a dynamic environment, and the coding of blockchain becomes efficient for programming. 

Marketing of cryptocurrency once it is created:   

Though the term crypto marketing has been designed recently, it is being used by several crypto business owners, be it lending, crypto wallet, exchanging, or building a community. If you are going to devise your own cryptocurrency you must learn the methods of how to attract other cryptocurrency community people to build a strong foothold in the market. Some of the most common ways of doing crypto marketing are 

• Crypto airdrops: Distribute the maximum number of tokens by airdropping it to multiple people in the community. In exchange offer them a free signup on the platform. 
• Bounty programs: Bounty programs are different from airdrops because airdrops are something like a token that fell into your pocket out of nowhere. Nevertheless, in crypto bounties, customers or investors must perform a task and in return, they will get a token of the original currency The tasks can be promotions via social media posts, reposting, retweets, or anything that helps in the promotion and marketing. 

In 2021 alone 2000 cryptocurrencies got into the pile of dead companies and failed. However, the global crypto market is approximately $983.72 billion, so if you don’t want to end up in the pile start with crypto marketing. 

A step-by-step guide to launching Initial Coin Offerings (ICOs) 

To launch a successful initial coin offer (ICO), you must plan and execute the strategy in a meaningful manner. 

• Whitepaper: The real smell of a successful crypto project is its white paper. Lay down everything, starting with the problem and talking about how your crypto coin solves that problem. 

• Decide a purpose of your token: Do incentivize your contributors by conducting thorough research on the soft and hard cap token numbers. Be aware of running uncapped ICOs. 

• Legalities: Do hire a legal advisor in your team, laying down the terms and conditions of who can and who cannot contribute to the project. 

• Plan and decide on the blockchain technology: Choose a blockchain technology underlying your token, as most people opt for ERC20 as it is easy to launch the ICOs but implementing a custom crowd sale logic can be mind-numbing. For instance, a discount structure for contributors, and refunding contributors if the ICO fails to meet its soft cap limit. 

• Token crowd sale and smart contracts: When writing smart contracts in the context of Ethereum, Open Zeppelin libraries can be the greatest asset when writing token smart contracts, and crowd sale. 

• Hardware and website setup: Firstly you will require a wallet to store the funds coming in from ICOs, for example, a multi-sig hardware wallet. Design a usable website with clear instructions laid out. In fact, many successful ICOs have a login system in place to download or upload any document. 

• Market early and right: Creating brand awareness and standard marketing campaigns using LinkedIn, Slack, ICO listing websites, and Bounties. Moreover, you must be aware of your target audience because the people who invest in ICOs aren’t novices, they are people who know about cryptocurrencies and are probably experts in it. Hence, you must research and advertise in the right places, though videos are still the best way to communicate. However, you must go to offline meetings and meet people in person to create credibility. 

Choosing a name and logo for your crypto coin

While selecting a logo, you must take into consideration two crucial factors, i.e. identifiability and scalability. For instance, many crypto companies opt for geometric and abstract logos related to technology and innovation. While choosing a name, be aware of selecting an easy-to-pronounce name relating to the service your crypto coin is going to provide.  

Conclusion:

Some of the most successful cryptocurrencies are, Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Steller (XLM), Zcash (ZEC), and many more. To create your own cryptocurrency you must study the whitepapers, and their pre-launch and post-launch strategies, which will help you in the creation of an ideal decentralized virtual asset. Moreover, having a great team of technicians, and designers, consisting of a CTO, CFO, and CEO is a must to expand your crypto-coin and develop a cryptocoin. 

FAQs: 

• What are the key features needed for a successful cryptocurrency exchange platform?

1. Buy and sell 
2. Extensive list of cryptocurrencies 
3. Low trading fees

• How can I ensure the security of funds and transactions on my cryptocurrency exchange?

Enhancing wallet security mostly requires multi-factor authentication (MFA), strong passwords, and frequent wallet software updates. Use two factor authentication (2FA) to provide bitcoin accounts an additional degree of protection.

• What technology stack is typically used for developing a cryptocurrency exchange platform?

The exact tech stack will depend on the needs and preferences of your project, however this is an example of a typical tech stack for creating a cryptocurrency trading platform: Blockchain Organization:Ethereum The underlying blockchain for issuing tokens and carrying out trade smart contracts is frequently Ethereum.

• How do liquidity and order matching work on a cryptocurrency exchange?

In milliseconds, the engines will search and locate appropriate orders. Decentralized algorithms that link traders across many order books provide access to larger liquidity pools. In this manner, orders are matched between dealers directly through a larger market.

• What are the potential revenue streams for a cryptocurrency exchange business?

When launching a bitcoin exchange platform, it's critical to take into account potential revenue streams that your platform might incorporate. Listing fees, withdrawal fees, and trading fees are the three main revenue models.

• How can I attract users to my cryptocurrency exchange and build a vibrant trading community?

1. Write the Story of Your Project.
2. Make a 14-day schedule. 
3. Apply communication channels and social media.
4. Produce Interesting and High-Quality Content.
5. Create a Successful Strategy for Community Management.
6. Promote material created by the community.
7. Encourage and Incentivize
8. Safeguard Your Project.