Make Your own Cryptocurrency: Not Difficult, But Expensive
It’s not very difficult to buy cryptocurrencies. I would say it’s a piece of cake. But what about making a virtual monetary unit by yourself?
All information about this can be found on the Internet comes down to the “think-buy-apply” scheme, but in reality, there might be several ways to implement. For example, one can start with a source code. It’s not necessary to write it “from scratch”, you can borrow one that was written before. It will be an underlying code, which will be edited later and customized as required. From the technical point of view, one will also require a special files library to make the code work correctly.
The longest period of time in making a new cryptocurrency is the editing of the source code. One will have to change a lot of parameters integrated into the software taken from the Internet, including the cryptocurrency name, and optimize the technical aspect of the code (program and customize network ports, specify addresses, and adjust the cryptocurrency generation algorithm). The cryptocurrency will have its own key system to provide its security and safety for the users, who work with it. The first byte of the keys is written exactly when the source code is being edited. Then, the images are edited – icons, which can be created using different graphics software. When everything is ready, the cryptocurrency can be released.
Of course, the way described above is suitable for advanced users only. Surely, it can be done easier: there’s no reason why one shouldn’t use the cryptocurrency emission center or create it via Monetas , which develops customized payment systems. Needless to say that these services will cost a lot of money.
After the new cryptocurrency is created and generates the first profit, one will probably want to go on. Most likely, the person, who own their personal cryptocurrency, will pay attention to the ICO.Practically, it’s a mechanism similar to the IPO. The ICO (Initial Coin Offering) is an initial offer of the cryptocurrency as an asset for attracting investments. The project that has never been known before can earn a lot of money within several hours or days, if particular conditions are met. At first, the ICO was considered as a “goldmine” of the cryptocurrency market, but later the situation became more complicated after the global regulators decided to establish control over unregulated cash flows.
So, for the ICO one requires a lot of spare cash, something like from 250,000 to 500,000 USD, to hire professional consultants and place the asset for the first time. In case everything goes okay, you’ll get your money back very quickly. For example, the ICO of Gnosis generated $12.7 million expressed in Ethereum and about $4 million expressed in other virtual currencies.
However, the ICO needs the idea in the first place. The concept investors will follow. Apart from this, you will need development staff and specialists guiding the project. These are the expenses that consume the money mentioned earlier. As a rule, the preparatory phase takes 5-6 months and the placement – from 2 to 4 weeks. The project staff will have to take care of documentation, marketing, SMM and other legal aspects, including the company official registration. Special focus should be on the website and its technical capabilities, which have to match up-to-date safety standards and successfully withstand cyber attacks, especially during the ICO, because it’s a period of time when your internet portal is the most attractive to cyber-crooks.
Well, are there any real prospects in all this? The first cryptocurrency created by Satoshi Nakamoto appeared in 2009. At that time, it was a code, which connected several computers together and allowed to make transactions within this network. This is the way how the bitcoin “was born”. Nowadays, its popularity is skyrocketing, but other new cryptocurrencies are also developing pretty fast – the technologies are advancing, so there is enough room for development.