How to Create your Own Altcoin?
Cryptocurrencies tremendously gained popularity during the last couple of years. In addition to Bitcoins, altcoins such as Ethereum, NEO, Litecoins, Dogecoins, etc., have acquired crucial importance. If you are a tech-savvy crypto enthusiast, or even if you are not, you may want to know how to create your own altcoin. Well, this article shows you how to create cryptocurrency without any hassle.
How to create a cryptocurrency – Crucial steps to create your own altcoin
Here are four different ways to create your own altcoin: going through platforms, creating Ethereum tokens, creating your own code starting from scratch, or diverging an existing blockchain code.
Creating a cryptocurrency will not necessarily bring results. That’s why it’s important to develop a solid project idea before you start. But if you’re ready to do it, here are the crucial steps to create your own altcoin online.
Four different methods of creating your own altcoin
1. Outsource the creation of the code using specialized platforms
Today, several platforms offer to create cryptocurrencies in a few days. For instance, companies like CryptoLife, Wallet Builders, or Coin Creator create alternative currencies to Bitcoin (AltCoin).
These companies promise to create digital currencies with a protected code that provides the currency with many specifics tailored to the customer’s needs. For example, do you want to create a currency that you will use for selling your music? These companies can create the currency that will be suitable for your platform and business goals. And the prices are in line with the needs of the customer.
2. Create your own altcoin with an Ethereum network
The Ethereum ledger network provides everyone with an open-source code that anyone can download from its site. This code serves for the creation of ERC-20 digital tokens.
Digital tokens can represent any exchangeable good: coins, loyalty points, certificates, IOUs, game items, etc. In this case, these tokens will serve as the base units of your new cryptocurrency.
Furthermore, since ERC-20 tokens are created with Ethereum standards, the digital currency that will emerge will instantly be compatible with Ethereum wallets and any other client or contract that uses the same standards.
The code of these tokens will be used as the basis for the creation of a new cryptocurrency. Essentially, developers only have to change a few parameters in the lines of code in an existing ERC-20, with a programming text editor like Sublime Text, to get the foundations of new currency. This code then needs to be added to a blockchain network, and this is where it gets slightly complex.
You have to open the MyEtherWallet wallet application, go to “Contracts,” and “Open a New Contract.” In the “Solidity Contract” tab, paste the source code of the ERC-20.
Using the MetaMask plugin, you can create the new cryptocurrency with an abbreviated version of the Ethereum blockchain and thus avoid very cumbersome operations.
To find out how to create a cryptocurrency, Ethereum has created a tutorial which details each step to follow.
3. Create a new cryptocurrency by building your own blockchain code
For those who have a deep knowledge of distributed ledger technology, genesis block, the code and know how to manipulate it, it is possible to create your cryptocurrency from scratch. A big plus with making your own currency from scratch is your ability to have more control over it.
You must therefore write your own code line by line to create your own altcoin. A custom server, a large storage space, and a powerful computer are also necessary to start this operation.
It is a relatively long and complex process that is not accessible to everyone. However, for those who are tech-savvy, there are many tutorials on the web for creating your altcoins and choosing the consensus mechanism (proof of work or proof of stake) through blockchain technology.
For your currency to be inviolable, your code must be impeccable. And this requires having excellent coding skills and a level of expertise in computer security.
4. Fork an existing currency
In the free software world, a “fork” is modifying a copy of the software that will not affect the base software. Typically, these forks arise when a developer makes changes to someone else’s project or uses someone else’s project as a starting point to launch their new project.
In the cryptocurrency universe, we talk about “hard fork” and “soft fork,” either a “major branch” or a “minor branch.” We can also speak of fork or bifurcation. This phenomenon occurs when the rules that define a cryptocurrency undergo change.
When too many miners refuse to adopt the new cryptocurrency rules, the group of miners who want to change the parameters will take another route to create a new currency on a new blockchain. This is popular under the name of a “major fork” or “hard fork.” Bitcoin Cash was born out of a major fork with Bitcoin, the first of cryptocurrencies.
A soft fork is essentially the same as a hard fork. The existing code of a cryptocurrency changes and an old version will still be functional while a new version is created. But eventually, only one blockchain will remain valid when users adopt the update.
The codes for a vast majority of new cryptocurrencies are open source. It is, therefore, possible to copy them to GitHub to recreate a new computer protocol and launch your new currency.
It’s so straightforward that you can create your new altcoin in 15 minutes if you are not a complete rooky. The IT process explanation is accessible in various tutorials on how to fork your own altcoin.
Add value to your currency with an ICO
Once the tokens for your currency are ready to come alive, you must find a way to place value on these tokens. The most common method is to do an ICO, which is an Initial Coin Offering. A vast majority of ICOs make part of smart contracts. These run on the Ethereum network.
Doing an ICO is all about raising funds by offering investor tokens – units of your new cryptocurrency – in exchange for real currencies like Bitcoin, Ethereum, or dollars. It requires investors to find real value in your currency.
The example of Gramatik is quite striking. This Slovenian DJ launched 2017 the GRMTK tokens, which are, in a way, shares of his cultural assets. By purchasing tokens, fans have acquired the rights to share revenue from music, movies, and major titles produced by Gramatik.
New cryptocurrency marketing campaign
However, an individual who starts without the social media support of a community is likely to face a problematic situation. No one will buy their tokens, and the launch of their cryptocurrency will be an absolute flop. For this reason, the communication aspect is crucial in creating a currency.
Even though the coding part is essential and the trickiest, the project would be worthless without a clear plan for making money from it once it’s finished. And also need to find a way to properly promote it via social media and gather significant community members that will vouch for your project.
For the success of your new cryptocurrency, it’s ultimately important to be active in the crypto community and promote your project. According to many, it needs to take place even before the creation of altcoin.
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