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7 Step Method to Make Your Own Cryptocurrency

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With more than 4000 cryptocurrencies listed on the Forex exchange, it is undeniable that the future is brighter for decentralized currencies and their founders.

Thousands of people around the globe are looking to make their own cryptocurrency to enjoy profits while the digital currency industry is skyrocketing. Many of them manage to establish a system for their cryptocurrency, but there is a lot of work required to seal the deal and ensure profitable growth. So let's jump in and learn how to make your own cryptocurrency in seven easy steps.

Understanding The Difference Between Coins Vs. Tokens

Before getting to the steps to make your own cryptocurrency, you need to know the difference between coins and tokens.

  • While crypto coins like Bitcoin exist on their own blockchain, tokens operate on existing blockchains, like the Basic Attention Token operating on Ethereum's technology.
  • Tokens are limited to being used within an organization, while coins can be used outside a single community.
  • Coins can buy tokens, but tokens can not buy coins.

COPYRIGHT_WI: Published on https://washingtonindependent.com/ebv/methods-to-make-your-own-cryptocurrency/ by William Willis on 2021-12-15T00:32:38.844Z

To simplify, You can buy groceries at a superstore for which you may be rewarded points. Later on, you can redeem the points in exchange for a product only from the same store. Now, the coins are equivalent to the money you use to buy groceries, and the tokens are the points you can redeem in exchange for products.

How To Make Your Own Cryptocurrency

The process of making a functional cryptocurrency is broken down into seven steps.

Decide On A Consensus Mechanism

A consensus mechanism is the process of all the nodes confirming a transaction for it to go through. This is also known as "achieving consensus." You will need a mechanism that involves a protocol on how a particular transaction goes through a network. There are many different consensus mechanisms, including Bitcoin's proof-of-work mechanism and many more.

Choose A Blockchain

Blockchain is a system where coins or tokens exist. Choosing the blockchain is a crucial step, and it depends on the consensus mechanism that you have chosen. There are three ways to decide on a blockchain.

  • Creating a new blockchain
  • Forking a blockchain
  • Using an existing blockchain

Create The Nodes

You have to decide how your nodes will function according to your blockchain. Nodes are the backbone of your cryptocurrency. They involve deciding whether the blockchain is private or public, the hardware specifics required for execution, etc.

Establish The Blockchain's Architecture

As a cryptocurrency creator, you must be sure about the design and functionality of your blockchain. Once the parameters are launched, the major building blocks can not be changed and may cause collapse if not properly tested beforehand.

Integrate APIs

While many platforms do not provide a pre-built Application Programming Interface (API), make sure your cryptocurrency has an API that helps it stand out and increase popularity. There are several 3rd party blockchain APIs that can help you with it.

Design The Interface

Designing a good and efficient interface is important to boost the chances of your cryptocurrency being among the top. Make sure that the web, FTP servers are up-to-date and the front and back-end development is done with future upgrades in mind.

Last but not least, do extensive research on the existing and upcoming laws for digital currencies so you can establish your cryptocurrency within those laws to avoid any mishaps that could ruin your efforts. It is best to consult experts to rule out anything that could hinder your coin's development.

Enter The Digital World

Cryptocurrencies have a promising future, with the global market value crossing $3.3 trillion. You can claim a chunk of that amount by making your own cryptocurrencies by following these seven steps. You can find loads of information about crypto at bitcoins-era.com to help you build a solid foundation of cryptocurrencies before you put anything at stake.

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About The Authors

William Willis

William Willis - William Willis is a freelance writer and social media manager who specializes in assisting finance professionals and Fintech entrepreneurs in growing their online audience and attracting more paying customers. William worked as a bank teller and virtual assistant for financial firms in the United States and the United Kingdom for six years before beginning her writing career. William is a strong force in the workplace, inspiring others to work hard and excel with his optimistic attitude and boundless energy. He enjoys hiking, crocheting, and playing video games with his children in his spare time.

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