From the best online casino and news to blogs and leading financial authorities, cryptocurrency continues to make waves as a worthy investment market to explore. Not only does it offer great potential for investors to gain profits, but it also opens many doors for businesses and developers to use these for even greater projects. 

Many investors tend to limit their idea of how to make money from cryptocurrency by only exploring it from a buying, selling, and trading perspective. However, many people don’t know that you can also opt to create your own cryptocurrency as a way to have another business venture. 

Though you might assume that this would be something complex to do and undertake, that’s quite the contrary because thanks to endless resources and information available on the internet, you can create and launch your own cryptocurrency in a few simple steps. So, for your beginner’s guide on how to go about it, you can keep reading for more.

Tokens Vs Coins: What’s The Difference?

Cryptocurrency is a digital currency that supports itself on encryption to confirm transactions and generate new units. It works the same way a normal currency does but just runs outside of a single centralized platform like a bank. 

With cryptocurrencies, you don’t have physical banknotes to exchange with. Here, you use coins that are often mistaken as tokens. But what’s the difference? In a nutshell, coins need their own blockchain to function properly while with tokens, they can operate on existing ones. You can use coins anywhere, while tokens are limited to one specific project. Also, coins can buy tokens but tokens cannot purchase coins. 

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Benefits Of Creating Your Own Cryptocurrency

The moment you decide to start a cryptocurrency of your own, you will have a powerful set of marketing tools and benefits at your disposal and these will help you stand out from the competition. Key advantages to take into consideration include the following points:

  • You’re able to eliminate fraud risks
  • There’s transaction anonymity
  • You’re able to cut down on operating costs
  • There’s an offer of immediate transactions
  • There’s an immediate pool of potential customers
  • There’s the security provided for your funds

Steps To Create Your Own Blockchain

Know The Use-Case

This step involves you needing to define your business objectives right at the start by identifying if your business interests are with smart asset management, smart contracts, or data authentication and verification. 

Choose Your Consensus Mechanism

To have your blockchain run smoothly, the nodes involved in the process need to agree on which transactions need to be added to the block and which need to be considered legitimate. The protocols that will be responsible for doing that will be with the consensus mechanisms. So, depending on your business objectives, you can choose between the many that’ll be available to you. 

Pick A Blockchain Platform

Depending on the consensus mechanism that you’ve used, you can use this to choose a blockchain platform. 

Design Your Nodes

A node is an internet-connected device that you’ll use to support a blockchain by doing various tasks like storing data, verifying information, and processing transactions. Your blockchain will depend on these nodes for security, support, and efficiency. 

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Establish The Blockchain’s Internal Architecture

At this point, you have to be very careful of the parameters you’ll be looking at because some can’t be adjusted once the blockchain platform is up and running. So, it’s a good idea for you to take the time to consider the following:

  • Permissions
  • Key management
  • Address formats
  • Atomic swaps
  • Key formats
  • Asset issuance and re-issuance
  • Parameters
  • Native assets
  • Block signatures
  • Hand-shaking
  • Multi-signatures

Deal With The APIs 

Check that your blockchain platform of choice provides pre-built APIs because not all of them do. But if it doesn’t come with those, don’t worry because many reliable blockchain API providers can be of assistance to you. 

Design The Admin And User Interface

Communication is important at this point and a well-thought-out interface makes sure that there’s smooth communication taking place between participants and your blockchain. 

Legalize The Cryptocurrency

Make sure to protect yourself from any legal surprises by looking into cryptocurrency regulations and laws to see what direction they are headed.