There are two primary ways of creating a cryptocurrency:
- Build your own blockchain — this will have its own ‘coin’
- Use NEO, Ethereum or a similar platform to create an application — this will have its own ‘token’
So, the first thing you need to decide is whether you’re going to build a “token” or a “coin”. Coins and tokens are both cryptocurrencies. The difference is: a coin belongs to its own blockchain, whereas a token is built on an existing blockchain.
Let’s look at why you need all these things to create a successful cryptocurrency project.
The Big Idea
This is the center of your project! You need to think about how your dApp will help in the industry you’re targeting. Are you planning to remove a current middleman? Are you looking to solve real-world problems (such as poverty or lack of education)?
You need to think about a real problem and how blockchain technology can solve it. If your project has no real benefit, then why will anyone want to invest or use it? If you want to create value, you must add value.
The Development Team
Choosing the right developer(s) for your token and smart contract can be the difference between success and failure. You must be very careful and choose a developer that you can trust to do a good job.
A Smart Contract
Smart contracts play a huge role in your cryptocurrency project. For those who don’t know what a smart contract is, let me briefly explain.
A smart contract is like a traditional contract; except it is digital, runs on the blockchain, is executed automatically, and cannot be changed.
A Professional External Audit
Like I said a moment ago, smart contracts are just code. This is the same for tokens. So, for a user to trust the code, they need to know it is secure. Therefore, you need a professional audit.
Not only does it mean the user/investor can feel safe, but it also means that you can feel safe — you wouldn’t want to spend all that money on smart contract and token development only for it to get hacked, would you?
A Well-written White Paper
If you want to learn how to create your own cryptocurrency, you’ll need to know how to make a good whitepaper. When I say good, I mean an exceptional one — a whitepaper what investors will use to judge your project.
Marketing Your Initial Coin Offering (ICO)
So, you have a brilliant idea. You have a great development team. You have your smart contract and token decided on. You’ve got a brilliant white paper (and lite-paper). Finally, you’ve had your idea professionally audited by an external agency.
Now, it’s time to think about marketing your ICO!
You need to build support and trust from a loyal community. You will need a website, a good domain, and a good social media presence. Also, there are plenty of various marketing and sales tools online that can help you advertise your ICO.
This how to make your own cryptocurrency analysis has gone through the technical and non-technical work you need to do to create a successful cryptocurrency via an ICO. But we keep going back to one key point…
Your project will only succeed if you have a good idea!
Guest Writer contributed to this article: Josiah O. Makori