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How to Create a Cryptocurrency : A Step By Step Guide
How To Create Your Own Cryptocurrency? Explore the step by step guide and create your own cryptocurrency with professional tech support from Security Tokenizer.
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Cryptocurrency has become a popular choice for online investment among several entrepreneurs all over the world. With its increasing number of investors, many have started planning to create their own cryptocurrency. If you are one among them, then this blog will be your guide from start to end in the cryptocurrency creation process.
What is Cryptocurrency?
A cryptocurrency is a digital currency which is secured by cryptography. These cryptocurrencies are decentralized in nature and their transactions are maintained in a distributed ledger called Blockchain technology. This digital currency makes it easier to transfer the funds directly between two entities without involving any third party, thus making it more popular among several entrepreneurs and companies.
How Does Cryptocurrency Works?
Unlike the traditional currency, Cryptocurrency works on a decentralized platform in which every user can view the transactions, while the identities of the people behind every transaction remains anonymous. The details of every transaction is stored in a digital ledger that is distributed across a series of computer systems. No single system has complete control over this ledger, but instead, a decentralized series of computers keeps a blockchain running to authenticate every transaction.
Benefits of Cryptocurrency:
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Highly Secured
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Self-governed
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Easy Fund Transfer
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Low Transaction Fee
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Inflation Hedge
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Huge Returns
List of Popular Cryptocurrencies in 2021:
Below mentioned are some of the popular cryptocurrencies that have made a huge impact in the crypto world.
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Bitcoin (BTC)
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Ethereum (ETH)
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Binance Coin (BNB)
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Tether (USDT)
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Cardano (ADA)
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Solana (SOL)
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Litecoin (LTC)
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Polkadot (DOT)
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Dogecoin (DOGE)
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Shiba Inu(SHIB)
Source: forbes.com
How to Create Your Own Cryptocurrency?
Below mentioned are the basic steps that has to be followed in order to create your own cryptocurrency.
Step 1: Define Your Objective
Make sure to have a futuristic plan for your crypto business so that you can create your cryptocurrency in a way that meets all your needs and business requirements.
Step 2: Pick a suitable Consensus Mechanism
A consensus mechanism is a protocol that will help your cryptocurrency function smoothly on a chosen blockchain network. There are several consensus algorithm like PoS(proof-of-stake), DPoS(delegated-proof-of-stake) PoW( proof-of-work), etc. Among them pick a mechanism that suits your objective.
Step 3: Choose the Blockchain Network
Choosing a perfect blockchain network for your cryptocurrency mainly depends on the consensus mechanism that you have chosen. Below mentioned are some of the popular Blockchain networks for you to choose from.
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Ethereum
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Waves
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Hyperledger Fabric
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EOS
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Ripple
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Quorum
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HydraChain.
Step 4: Design the Nodes
Here, a node is a decentralized ledger that processes and stores information about all cryptocurrency transactions. This information is made accessible to every nodes that lies within the same blockchain network. As it holds such a responsibility in the cryptocurrency transaction, it is essential to be more cautious in choosing several factors like processors, memory size etc while designing the nodes.
Step 5: Set up the chosen Blockchain’s Internal Architecture
It is important to be more careful while framing your blockchain’s internal architecture as you won’t be able to change several functionalities once it has been launched. Hence make sure that your blockchain covers all your required aspects.
Step 6: API Integration
Make sure that your blockchain platform offers all the necessary pre-built API code through which multiple applications can share data. If your blockchain platform doesn’t come with such inbuilt API, then you can avail such features from several blockchain API providers out in the industry like ChromeWay, Bitcore, BlockCypher etc.
Step 7: Construct the Interface
To make your cryptocurrency a huge success, it is important to build a good interface with the latest versions of FTP servers, external databases and also get your front-end as well as your back-end programming done with the futuristic features that you have in your mind.
Step 8: Legalize Your Cryptocurrency
Since you have created your own cryptocurrency, the last important step is to legalize your cryptocurrency. It is obvious that soon there will be several international regulations for cryptocurrency, hence make sure that your cryptocurrency abides all the criteria that soon might become law.
Hope you have understood how to create your own Cryptocurrency through the above mentioned steps. If you are a budding entrepreneur in the crypto industry then there is a solid chance for you to face several technical challenges somewhere in the process, hence it is better for you to get assistance from a professional Cryptocurrency Development Company like Security Tokenizer so that you will have all the guidance in making your cryptocurrency a huge success.
Why Choose Us for Cryptocurrency Development?
As a leading token development company as well as a cryptocurrency development company, Security Tokenizer has delivered several successful blockchain projects. With our expertise in the industry, we can amaze you with our innovative business ideas that will take your business to a whole new level. Get in touch with us for guidance on any of your crypto projects.
