Setting up your own cryptocurrency

If you have been trying to make extra money on the side in the past few years, there is a good chance that you have at some point looked into cryptocurrency.

Although the major currency, Bitcoin, has taken something of a nosedive in recent months, the fact is that many of them remain a fairly lucrative way to make money, so long as you know what you are doing. In most cases, this will mean trading between the various currencies and banking them against each other. In others, it might be a case of buying coin early on and simply letting it sit there until it develops into something much more valuable. But there is another, hugely powerful, ways to make money from the world of blockchain economies: to make your own.

Creating your own cryptocurrency might seem like something of a dream. For some people, it could even look like something that is far too complex to bother with. You can certainly expect there to be a learning curve, and for it to take quite some time before any returns come back to you. But nonetheless, the fact remains that creating your own cryptocurrency is relatively easy, and the kind of thing that is worth looking into if you are keen on trying to make some extra money on the side.

So what is actually involved in the process of creating a cryptocurrency, and is it really true that anyone can do it? Do you need any special equipment or software, or is your laptop enough? And how do you make sure that people are actually going to trust in your new currency? Let’s look at some of the answers to these questions.

Create Intrigue

While you might be mistaken for thinking that the first step is to create the coin itself, actually that’s not quite right. In fact, the very first thing that you should think about doing is to start to create some interest and intrigue for your coin, so that you can make sure you are actually going to get the ball rolling with it with a decent amount of community interest. There are plenty of ways to do this, and many of the best methods amount to basically marketing any other kind of business. The more that you spread the word around amongst people you know in your local area, the quicker it will spread – and the more internet marketing you do on the side as well, the more it will get taken up in all corners of the world.

When it comes out that internet marketing, you want to make sure that you are approaching it in the right way, and a lot of that means ensuring that you are clued up on the latest news within the world of digital marketing. For that, you might want to grab the skill, Internet Marketing News, so that you can receive a bulletin on it as and when you see fit. You should also consider speaking with a professional web marketer, especially someone who has a lot of experience in cryptocurrency or something similar. The more you know about marketing, the easiest you will find it to spread the word about your own cryptocurrency.

You want to create this sense of intrigue, and traditional marketing is absolutely powerful here. But it’s important to note that your goal is quite different from what it would be for a normal or traditional business. You are not seeking customers, as such; instead, what you are doing here is trying to build a community. The more that you can create intrigue, the easier that will be of course, but it is still a case of ensuring that you start to create a community of people who are going to want to get involved in the first place.

The reason for this is clear. It is not an individual which starts a crypto coin, but a group of people. It only holds value so long as there is a group of people holding on to it and selling it. Having a community is a vital, unmissable, first step in creating your coin. Of course, if you hope to generate a community, you will need to appreciate how to draw people together, and that means having some kind of central vision for the coin. You are going to need some purpose that makes people believe in your coin and want to support it with everything they have. So get thinking about what makes your coin unique, why you think it should exist at all, and what people can expect from it in return.

Get Coding

One great benefit of all this of course is the ease with which you can create the actual coin itself. With traditional currencies, it is famously very hard to create your own. You can’t just print money on paper and hope people to go along with it, or hope that it works out the same as real currency. With cryptocurrency, however, you don’t have the same kind of difficulties. In fact, anyone with some pretty basic coding skills can create a cryptocurrency, and even those without such skills should be able to do a search and learn said skills surprisingly easily and quickly. Let’s look into the coding aspect of the coin a little more here.

For most people, coding is actually one of the easiest parts of the whole process. You will find that the preceding part on marketing is much more intensive, but even so you need to make sure that you get the coding right, or else it simply won’t work as a basis for your new currency. Almost every cryptocurrency out there is based on Bitcoin, which means that creating your own version is so easy that you can probably do it within a day. The language that anyone uses for cryptocurrency is C++, an incredibly standard kind of coding system which most people should find that they are able to learn pretty easily. If you don’t already know C++, you can learn online quite fast, and there are some great free online resources out there for doing so, so that would probably be your first step.

Of course, just because it can take a day doesn’t mean that you should rush it. This is still the integral part of the whole process, and you need to make sure that all the parameters work perfectly. You will also want to check and test and retest before making anything live, as it could spell disaster if there is even the slightest thing wrong in there. Great care must be taken to ensure that all goes to plan. That being said, there will always be one or two bugs, in part because of basic human error and in part because nothing is perfect, not even a code. You will therefore also need to prepare to offer bug fixes as and when they are needed, so that you can make sure that you are providing the best possible experience for your keen new community of users.

The Mining Process

Bitcoin works so well for so long because there was great incentive to mine it. It is the mining process which actually creates the coin, after all, and therefore it is something that you really need to make sure you are clear on at the very start of the process. You also need to make sure that you are spreading the word enough that enough people want to come on board and get mining. If you don’t attract any miners, then your cryptocurrency is going to go nowhere. It won’t increase in value, or do anything much, until you have people earnestly meaning it. So how do you make this happen?

To attract miners, you need to establish a lot of trust, so do everything you can to make your crypto clearly legitimate and worthwhile. Investors will generally look for a serious approach, a white paper published early which they can peruse which outlines all the details of the system as well as the surrounding philosophy, and an obvious community of keen individuals who are happy to work together to make it a reality. If you can’t provide all of this, you will find it much harder to attract miners, and for the coin to grow.

Be careful not to oversell your coin either, for in the end that will only result in a backfiring situation where the coin gets dramatically reduced in value. Think of Bitcoin’s inbuilt system whereby it does not allow for inflation: something along these lines is generally going to be a pretty good idea, to stop anything drastic happening to your currency. As long as you get the balance right here, you should find that it all works out pretty well.

Be diligent and clear, and you should have a cryptocurrency which has the potential to do well. You never know whether or not it will really succeed, or whether it will take the world by storm, but if you have the right ingredients and approach, you can make it more likely.

Like this article? Take a second to support us on Patreon!