How to Launch Your Own Cryptocurrency

Now that you have ample knowledge of cryptocurrency, let’s help you launch one. However, there are several technical aspects involved in launching your own cryptocurrency. So, you need either be a tech expert or hire a team to work on your behalf.

Below is a brief, step-by-step process to help you create your own cryptocurrency. This guide/explanation will make you aware of all of the basics.

Before we begin, ask yourself whether you want to create a “coin” or a “token.” What’s the difference? A coin has its blockchain. And a token works on a preexisting blockchain. Let’s suppose you want to create a coin with your own blockchain.

1. Defining the cause 

The First step towards creating crypto is the cause. It’s the cause that motivates the customers to trust your business and its crypto. Most people opt for crypto because of the following benefits:

  • Avoid fraud transactions – no one would be able to reverse transactions, thus preventing frauds.
  • Offer better transaction privacy – crypto offers privacy and anonymity.
  • Fewer restrictions – As the business will be accessible across the world.  

Once you define the cause, you need to craft a whitepaper defining your business idea. Also, include the technology and methodology that you’ve used.

2. Finding a consensus

You can think of consensus as a mechanism that helps ensure:

  • Transaction legitimacy
  • Synchronization of nodes

It’s a basic verification system. The consensus also enables the participants to agree upon which transactions are eligible to be added to the block. Here are the two most common blockchain consensus:

  • PoS or Proof of Stake
  • PoW or Proof of Work or DPoS

Here’s a video to help you understand consensus mechanisms better.  

3. Choose the best Blockchain Platform.

The choice of consensus method will decide which blockchain platform you choose. However, we’ve listed/mentioned some of the best and most reliable blockchain platforms below:

  • Ripple
  • Ethereum
  • NEM
  • OpenChain
  • IBM blockchain
  • EOS
  • Stellar

4. Designing the nodes

Once you’re done choosing the blockchain, it’s time to focus on nodes, and nodes help validate the transactions for better security and efficiency. Basically, nodes offer an infrastructure that you can use to create, store and spread the blocks.

5. Creating an internal architecture for your blockchain 

This step is quite crucial. It’s because once you create the architecture and launch the platform, you cannot change its parameters. Here’s what you need to focus on while creating the architecture:

  • Clearly define who can create, validate or access new blocks.
  • Configure the blockchain address.
  • Define asset issuance rules.
  • Select a format for private keys.
  • Establish a system for storage and protection of private keys.
  • Decide on how many digital signatures are necessary for transaction validation.
  • Decide on the block size, block reward, and transaction limits.
  • Develop a system that allows the exchange of different cryptocurrencies without needing an intermediary.

6. Blockchain API Integration

Certain Blockchain platforms do not offer APIs. So, it’s recommended that your platform offers one. However, there are certain 3rd party providers that you can work with or integrate. Here are some important blockchain API service providers:

  • Blockchain APIs
  • Neuroware
  • Colored Coin APIs
  • ChromaWay
  • Colu
  • Gem
  • BlockCypher
  • Coinbase’s API
  • Bitcore
  • Tierion

7. Creating the User and Admin UIs

An intuitive UI always attracts the users and also increases credibility. So, when setting up the UIs, make sure that the FTP server is compliant and secure. Also, whatever DB or database you’re using should be the latest version available.

When developing the backend, keep in mind the future challenges and updates. This will ease your problems in the years to come.

8. Legalize your crypto

You must legalize your cryptocurrency by meeting the requirements or guidelines. It helps in easy monitoring of emergencies cryptocurrencies. Also, legalizing keeps your business away from any future legal threats.

9. Promotions

Now that your project is done with the complex part, it’s time for promotion. If your target audience is not aware of what you or your business do, it won’t be of use. So, you need to popularize or promote your crypto on popular channels such as:

  • Reddit
  • Telegram
  • Twitter
  • Discord
  • BitcoinTalk

You can also craft a good press release and attract media that will get the job done. This way, you can make a decent name in the existing crypto market.