Guide On Creating Your Own Altcoin
To create your own altcoin you do not need to be a coding guru. By reading this article, you will learn how to make an altcoin. In the article, we cover the basic steps of altcoin creation and break down why it is popular and successful. So continue reading and get ready to develop your own crypto right away.
How To Make Your Own Altcoin
If the possibility of creating your own cryptocurrency looks attractive to you, but you are not sure how to build your own altcoin, start with the main concept and develop your idea step by step. The cryptocurrency industry is thriving, attracting more investors every day. There is no reason you shouldn’t take advantage of this growing interest in digital currency and follow the path of innovation with other specialists in the field. Then, become a specialist yourself and create a profitable digital asset.
Altcoin Creation Guide: Basic Steps
If you are still in doubt about how to develop altcoin, we prepared for you a short and helpful guide that includes a couple of steps. Like any startup, altcoin requires a clear idea it should be based on. Thus, you should have a distinct understanding of your target audience and adopt explicit business strategies. To attract investors, make sure to release a white paper that will describe the altcoin concept in detail, create a convenient dashboard it can be accessed, and develop the promotion campaign. Find more about each step below.
Define your idea
Creating an altcoin is a fun and engaging process. But remember that there is a distinct idea behind each successful project. You should clearly state your objectives and create a strategic plan you will follow from the start. It is always better to have a bigger picture in mind and consider how your altcoin will fit in the crypto industry. Define what business areas you want to cover - data authentication, or maybe it will be smart asset management, etc. Once it is defined, you can move on to the next step.
White Paper Creation
One of the key stages of altcoin development is creating the white paper. It is a technical document that explains to investors the altcoin concept. You should provide all the facts, statistics, diagrams and true information on the additional aspects of your startup to convince the potential investors to purchase your cryptocurrency. Whitepaper is required for an altcoin startup to be rated as professional and licit.
A cryptocurrency dashboard is a navigation platform designed to operate all the processes related to managing your crypto account with all its assets and keep track of the changing worth of the crypto on the market. It can be made accessible via a website or a mobile app. You can start by trying free widgets available on the Internet or creating a website from scratch, leaving the task to the team of professional developers. If you decide to use the ready-made widget, the next step after you select one is to create a basic HTML page to feature it. Then you can add style and line up the widget horizontally and vertically, altering the margins of each widget box according to your preferences. Of course, if you are completely new to the topic, consider entrusting the whole procedure to the professionals.
Creating Multi-sig Wallet
One more step to consider when making an altcoin is establishing a multi-signature wallet for it. A signature or a private key combines alphanumeric characters that include Latin letters and Arabic digits. It is not reliable to access your cryptocurrency funds only via a single signature. When you create a multi-sig wallet, you will need a couple of keys to complete any transaction instead of one. For example, if you design 2 of 3 multi-signature wallets, the system will require 2 keys to confirm a money transfer. The wallets always use the N of M formula to work, meaning that you won’t need all the signatures you set for it. It can be 2 of 3, 3 of 5, 5 of 7, etc. Whatever your choice will be, if you develop a multi-sig option for accessing the altcoin you created, it will show your serious attitude to the safety and security of the business.
Choose A Standard For Smart Contract Implementation
If you want to know how to make an altcoin, you will need to dig deep into the topic of smart contracts and their implementation. A smart contract is a program aimed at automating the different business processes performed with the help of a cryptocurrency. It is a fast, secure, and easy way to execute an agreement between two parties that immediately will result in an outcome. The agreement works for different financial purposes like investing, trading, exchanging, landing, etc. The centralized implementation means that smart contracts are set up outside the blockchain under the responsibility of a third-party organization. The decentralized approach, on the contrary, implies no other resources except for the crypto blockchain. The hybrid approach combines the features of the two mentioned ways to implement smart contracts. To choose the way that will suit your business, you must consider the cost, privacy, limitations, language capabilities of smart contracts, etc.
Initial Coin Offering is one of the methods to raise funds for a newly created altcoin utilized by numerous cryptocurrency startups. It is a viable option for fundraising because it generates public attention and increases the initial value of a digital currency. The ICO takes place before the token is listed on a public exchange for early investors to buy a part of it. The offer is attractive for the investors because it allows them to invest in an asset that will potentially grow in price and bring a lot of profit.
Be Or Find An Investor
If you want to make your own altcoin, you will need initial investments in the project. Even if you have some means to invest in your startup, it will be a smart move to find investors to boost the development of your idea. To do that, you will need to make your proposition attractive and show the competitive advantages of your project in comparison to the rest of the cryptocurrency options on the market. Investors will pay attention to acceptability, transactions speed, price fluctuations, etc.
How To Make Your Altcoin Successful
To make an altcoin successful, you need to consider many factors before and after launching it. There are some difficulties you may encounter during the project development. However, with a clever approach to your startup, it is not that complicated to promote a newly created altcoin. Quality and reputation are the main factors investors will pay attention to.
Difficulties On Creating Altcoins
With the accessibility of information and the possibility to hire developers, creating an altcoin is not that difficult. However, an issue may occur when people try to make money by selling their frequently badly created cryptocurrency. To avoid this, take care of your product's quality, reliability, and trustworthiness. Of course, you can start developing an altcoin on your own, but to meet the high market requirements, keep in mind that working on an altcoin project requires a team and certain knowledge. One more issue is the high competition on the market. There are approximately 6,000 various coins and tokens available, and creating your own may not always provide the financial gain you anticipate.
Identify Worthwhile Cryptocurrencies
To learn whether a cryptocurrency is worthwhile, investors refer to crowd-sourced information and professional communities on the Internet. Turn your attention not only to how to develop altcoin but also to whether it looks worthwhile for investors. The investors will check what problem your project solves and what team stands behind it. The uniqueness of white paper is important, so make sure you have an original description of your product and not a mere copy of another project. Moreover, such aspects as the management of supply and the way of distribution are also thoroughly investigated by potential buyers. If you take care of your altcoin's reputation and high quality, you will succeed with it.
New Cryptocurrency Marketing Campaign
The success of a crypto business venture depends not only on the process of developing an altcoin but also largely on the marketing campaign that you launch for it. When advertising your crypto, think about establishing relationships whenever possible and making your project known. For this purpose, LinkedIn and social media will work perfectly. You can use Linked Helper on LinkedIn, which will automate the process of contacting possible investors. Promote your idea on Instagram, Facebook, and Twitter, and constantly update these channels. Look for the websites and agencies that search for new crypto startup ideas to write about daily. Contact them and arrange a press release for your project. Finally, do not stay alone in advertising your altcoin. You can organize a bounty campaign that will reward anyone who fulfills particular tasks that aid in promoting your business. This will also be beneficial to create podcasts and interviews for your project.
Why Altcoins Became So Popular
Existing on the market for over 11 years, cryptocurrency, including big names like Bitcoin and other cryptos that are combined under the term "altcoins" has gained huge popularity. It is not surprising because an altcoin is a profitable financial asset and a convenient means to perform a huge range of online money transactions. The major characteristics of altcoins include safety, anonymity, and decentralization. No centralized body, government, or bank regulates or tracks cryptocurrency.
Anyone can take part in the development of their own altcoin and have their share in highly profitable crypto business. Start with defining your target audience and the business field you’d like to cover. Next, take care of the technical side of your project, like choosing the smart contract implementation and creating a multi-sig wallet and a convenient dashboard. If you are still unsure how to make an altcoin from scratch, you can entrust all the technical parts to developers. When it comes to promotion, use social media, specialized press, and think of a reward system that will stimulate people to spread the word about your project. As the question “How can I develop my own cryptocurrency” has been answered, do not waste any time and start working on your own altcoin creation right away.
Frequently Asked Questions
Do I Need Programming Skills To Create Altcoin?
No, it is not necessary to have programming skills to create altcoin. You can use the existing blockchains to base your altcoin on. Or, refer to developers that can assist you in the process of altcoin creation.
How To Create A Cryptocurrency?
To create a cryptocurrency, start with a clear idea of your target audience and what problem it will solve. Then, create a unique white paper for it, set up a dashboard, choose how to implement the smart contract, and work on a marketing strategy.
How To Make My Altcoin Successful?
To make your altcoin successful, identify its worth, take care of its quality and reliability, and think about what features to add that will differentiate your product from the competitors.