Today creating a new digital currency is surprisingly simple for someone with even basic coding skills. But coding is not the only track to get your digital currency off the ground. Here are the five steps you should follow according to the makers of three cryptocurrencies.
5 Steps To Consider To Make Your Own Cryptocurrency
Utilize Community To Nurture your Cryptocurrency
When you start thinking to create your own cryptocurrency, it is easy to assume the first step is, to begin with, the coding of your coin, but that’s the wrong way to start.
According to Chris Ellis, a London businessperson and a community activist at Feathercoin “The first step is to find a community and create a currency around them rather than creating currency and demanding everyone to show up.”
Peter Bushnell, created a digital coin called Feathercoin in April 2013. Bushnell resigned his job as head of IT at Oxford University’s Brasenose College because he aspired to start his own currency. He saw a lack of community involvement by the existing cryptocurrencies.
Ellis found that the Feathercoin is the cryptocurrency which is involving the community. The company will greatly benefit from technical developments through community activism approach.
Ellis says, operating together with a community of dedicated crypto enthusiasts is much better and can able to locate and address vulnerabilities and security threats, similar to the 51% attack, which the coders at Feathercoin has successfully built protections against the attack.
Building more protections and nurturing the development of your cryptocurrency give your digital coin a legitimacy and trust in the eyes of the people.
Always Code For The Long Run
Every single currency developer will say the same thing, Coding your cryptocurrency is normally the limited time-intensive part of the process. That’s because practically every cryptocurrency on the market today is based on the open source code of Bitcoin or Litecoin that is accessible on GitHub.
Just because anyone with C++ skills can make a cryptocurrency does not mean that there will be as many digital currencies.
If you can not do that, no one is going to stick around to use your coin, and the mining of the coin will drop off as swiftly as downloads did of the first Doodle Jump knockoffs.
Get Miners Onboard
Once you make your own cryptocurrency, you need to spread the word so miners can start mining it, which raises awareness of crypto existence and probably begins to earn some value in the sights of its miners and users. This is where creators of cryptocurrencies need to stop imagining like coders and instead look into how human beings put trust in things.
Overselling your digital coin will backfire. The market is there to examine your grit and determination. You should have a group of loyal miners who are committed to the cause and will process your payments even during depreciation in price because they understand in the eventual outcome. It is all about good communication and team building.
Know Your Traders
Let’s assume you have made it this far, you have imagined a great cryptocurrency and brought the right team together to code and grow it along the way. You have to spread the news around the cryptocurrency forums and there is a healthy measure of miners actively working to develop your cryptocurrency.
The next and important step is to market your digital currency so that all the people who are mining it should have a place to spend it. This is not at all a small effort; you need to influence individuals and merchants that these digital coins you have created hold value and can be traded for things, just like traditional fiat currency.
People will invest into your motives more than your actions, so once you feel confident then only you have to start talking about your digital currency to friends, investors, merchants, internet forums and on social media.
Ellis says that merchant selection is similar to miner adoption, it’s just a matter of learning their different outlooks. He notes that traders have three principal aims – to make money, to conserve money, and to expand their awareness.
Also read, What Is Plaguing The Cryptocurrency Market?
Do Not Consider to go Global
The last and most important step in your cryptocurrency campaign is world domination by your coin. Since 5,000 years there is not a single currency that has dominated the earth.
Your goal should not be to dominate global cryptocurrency market. There are many true markets in the field of cryptocurrencies like hyper-local currencies, venues, towns, events, and groups of users that are built around a community. The cryptocurrencies allow consumers to trade easily, fast, and securely for assets and services that are important in their daily lives.
Cryptocurrency consumers don’t have to rely instead on the central banks and other markets to tell them what arbitrary item, be it a regular currency or a plastic dollar; it really holds a value.