Thousands of people are looking for ways of creating a cryptocurrency and repeat the success of Satoshi Nakamoto, the creator of Bitcoin. If you are dreaming about the same, Is creating a Cryptocurrency profitable in 2021 this article is for you.
Back in 2009, the creators of the first digital currency, bitcoin, made sure that after reaching the emission threshold of 21 million coins, cryptocurrencies did not disappear forever. In particular, they made the bitcoin software code open, which allowed other developers to create their own currency counterparts – altcoins.
Today there are about 2,000 altcoins, created mainly on the basis of bitcoin, and their creators are clearly not in the imagination.
In particular, there is already the Sexcoin cryptocurrency for paying for adult goods, PotCoin for selling marijuana goods, and even TrumpCoin and PutinCoin. In 2014, there was a currency named after Kanye West, but the performer through the court achieved a ban on the use of his name by the developers.
Are there any chances of success with alternative cryptocurrencies
In August this year, the total volume of the cryptocurrency market was $ 160 billion.
However, many are still convinced that only bitcoins are worthy of attention in this market and that you will not earn much on other coins.
Is creating a Cryptocurrency profitable in 2021? Anyone who is thinking about creating their own cryptocurrency should pay close attention to the top three alternative digital currencies, which are ranked right after Bitcoin in the ratings.
Despite their less popularity, they already bring billions of dollars to their owners, and every year their popularity (and with them capitalization) only grows.
We create our own cryptocurrency: the market aspect
New currencies appear almost every day in the world. Many of them are based on the open source bitcoin. As a result, coins appear with almost identical characteristics, mining schemes and source code (sometimes the mining scheme or transaction speed changes).
As a rule, such cryptocurrencies cannot adapt to market conditions and oppose stronger competitors – and become a failure.
In turn, cryptocurrencies with the original code like Ethereum with smart contracts and Ripple for banking operations remain afloat.
In fact, Litecoin has become the only successful altcoin of all, whose code is almost exactly the same as that of Bitcoin. But Litecoin has two important differences – four times as many coins issued and the original mining scheme, based mainly on the use of the power of the central processing unit (CPU).
Now that we’ve talked about the need to have a unique edge, let’s list other factors that have a decisive impact on the market success of a cryptocurrency.
- Supply and demand ratio. As in any other market, the value of a product rises along with an increase in demand for it, and vice versa.
- Electricity cost. For the extraction of cryptocurrencies, the power of computers is used, so the price largely depends on the amount of electricity used for mining. But the price of the “ecological” cryptocurrency Solarcoin depends on the production of solar energy.
- Loot difficulty level. Everything is simple here: the more difficult it is to mine a digital coin, the higher its price.
- Possibilities of application. The cost of a cryptocurrency depends on a variety of uses. For example, if you can pay for goods and services with your coins, its price will automatically increase.
- Domino effect. Events occurring in one currency automatically affect others. In particular, a change in the value of any cryptocurrency or scandals in the media, provoking bursts of distrust in cryptocurrencies in general.
- Government policy. Despite the decentralized nature of cryptocurrencies, news about their regulation in different countries can significantly affect their price.
In addition, there are other external factors, both negative (for example, fraud) and positive (large investments of professional market players in cryptocurrency).
We create our own cryptocurrency: the technical aspect
From a technical point of view, there are various methods of creating a new cryptocurrency, from adapting the bitcoin source code to using ERC20 (23) or Waves.
A detailed story about all the methods is quite worthy of a separate article, so now we will consider only the most basic option using the source code.
Most likely, you will not be able to create a revolutionary cryptocurrency with its help, however, at least you will be able to get a general idea of what kind of tasks cryptocurrency developers have to face.
So, if you are interested in trying your luck in creating a cryptocurrency, follow the instructions below.
Step 1. Pick up the source code on the github platform
Go to the resource and pick the code of the existing cryptocurrency, which will form the base of your upcoming network. The source code of the bitcoin client version 0.9.0 is presented on github.
Next, you need to install libraries for the code to work correctly – a number of special routines for developing specific software. The list of subroutines varies depending on the type of your operating system.
Step 2. Edit the code
When creating a cryptocurrency, rephrase the following figures in the code.
- The name of your cryptocurrency in Latin characters.
- 2-4 letter abbreviation.
- Cryptocurrency graphic icon.
- Encryption algorithm (most often SHA-256 (Bitcoin) and scrypt (Litecoin) are used).
- Maximum number of coins.
- A reward for finding a block.
To make simpler the editing process, you can use unique software:
- Search and Replace or HandyFile Find and Replace for Windows.
- Regexxer for Linux.
- TextWrangler for MacOS.
Step 3. Configure network ports
You need to have excellent programming skills to configure network ports. Otherwise, you will face problems with transactions and this will negatively affect on your currency.
choose 4 free ports: 2 for P2P and RPC, and 2 test ports for P2P and RPC (testnet) connections. Make sure the ports are free. Having decided on the ports, enter their names into the code of the files obtained in the first step.
Step 4. Take security measures
Be sure to generate a custom key that will allow you to conduct transactions in a secure manner. Each currency user have a public and private key. You can set the first byte of the public key in the code as a symbol and a number. Enter your key in the src / base58.h file.
We create our own cryptocurrency: a strategic aspect
When creating your own cryptocurrency, you need to initially treat it as a commercial enterprise that can both hit the market and go completely unnoticed.
Getting your priorities right is critical to your success in the marketplace, so below are six tips for anyone considering creating their own cryptocurrency.
- If you don’t have programming skills, create a currency using Open-Transaction software . The platform supports a large number of emission centers and, in addition to creating a cryptocurrency, helps to solve many other functions. This way you can optimize start-up times and not get bogged down in the technical part for too long.
- Choosing between a primitive currency based on the bitcoin code and a unique one, which is more difficult to create, choose a unique one – it has a higher chance of staying in the market. Try to create a fundamental improvement , and then interested investors will find you themselves.
- Look for weak points. Imagine yourself in the shoes of a hacker trying to break into your system, look for vulnerabilities and fix them. Doing so can help you avoid flops soon after launch that could create a bad name for you in the market.
- When coming up with a cryptocurrency, make predictions about what will be interesting to users in two years . This is the only way you can create a solution that can stay in trend for the foreseeable future, and will not disappear immediately after more progressive solutions appear.
- To make your cryptocurrency popular, you need to run a full-fledged marketing campaign with contests and bonus coin giveaways. Today, the bitcointalk.org forum is popular, where developers present their cryptocurrencies to the general public, so make the most of it and all other tools available.
- If you plan to gain a foothold in the cryptocurrency market for a long time, set aside at least a year for the launch of the project and at least two for its development.
These are all useful tips for today – now you understand that creating your own cryptocurrency is not the lot of only a handful of a select few, and everyone, with the proper intention, is quite capable of doing the same.
And remember: Bitcoin, too, was once created by a confident enthusiast who once made up his mind and did it.