How and why to create your own cryptocurrency

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Everything is not as complicated as it seems at first glance.

In April 2018, "the most popular person in Russia" Olga Buzova announced her desire to release the Buzcoin cryptocurrency and conquer the entire digital space. A successful debut did not take place, but Buzova is an excellent example of the fact that every person without deep knowledge of programming and technology can create their own cryptocurrency, get a lot of advantages from this and be known as an advanced user.

Why create your own cryptocurrency

1. Convenience and speed of financial transactions

In some cases, namely when buying on the Internet, it is more convenient to use cryptocurrency than a plastic card. When making purchases on foreign sites, the user pays for the parcel using a dollar bill from an electronic wallet. For various reasons, the transaction may fail and not take place, you will be left without your phone case or other very important things.

The digital asset that is transferred on the blockchain does not linger at the points of intermediaries, but almost instantly reaches from client A to supplier B.

The peer-to-peer (P2P) economy, in which two parties find each other and make a deal within the same technological open platform, greatly improves our lives. All participants in the process need their own money, coins, points. These rewards help develop customer relationships.

For example, Kim Kardashian can distribute KimCoin coins (let's call them that) to his most loyal fans, and then only use these coins for private presentations or give discounts upon purchase. Why doesn't she just send millions of dollars to her fans? In the blockchain it will take minutes, but in the modern financial system, which is constantly changing and different depending on the country, it is simply unrealistic to make quick payments without intermediaries and commissions. Fans can use KimCoin instantly: give to a friend, buy something from Kim, save up for something special.

2. Simplifying your business

If you have a business, then you just need a cryptocurrency to systematize the process. The internal token - the project's coin - will help increase profits, and this, as the law of microeconomics says, is the main thing that any production strives for.

Digital currency, like a loyalty program, systematizes and simplifies the entire production process. Clients will pay for services with tokens, which, unlike usual bonuses, will not lose their value and will retain the original programmed rules for their use. Calculations will be made and recorded with the help of one unique, the best coin, invented by you and from this, and not a simple iron one, but a digital one.

3. Passive income and your own ego

If suddenly a personal business remains for you a matter of “later, when the time appears,” then your own cryptocurrency can become a tool for passive earnings. If the coin is backed up by a stock reserve, as before the dollar was gold, it can be exchanged for the well-known bitcoin and then get the usual, everyone's favorite paper cash.

Or maybe you are one of those who want to repeat the success of bitcoin: create your own cryptocurrency and wait for passive income from admiring users?

And finally, if someone you know has a cryptocurrency named after you in their wallet, then the limit of their own pride will reach the maximum scale.

Where and how to create your own cryptocurrency

The process of creating a cryptocurrency is not as complicated as it might seem. The projects offer roughly the same coin issue concept. Thanks to a team of specialists, Olga Buzova, mentioned above, placed her project on the Ethereum platform - the most popular among all analogues.

1. Ethereum

This blockchain was developed by the Canadian-Russian programmer Vitalik Buterin. He proposed the technology of smart contracts - self-executing algorithms designed to conclude and maintain commercial contracts in blockchain technology. Thanks to this development, the Ethereum network quickly became the second most popular platform on the crypto market, not only among startups wishing to conduct an ICO, but also among the largest software developers such as Microsoft, IBM and Acronis.

How to issue a coin

The process of creating a cryptocurrency is not difficult, it is advisable to know the Solidity programming language and adhere to the ERC standards. The most popular is the ERC-20, which supports multiple functions.

1. Initially, you need to come up with a name for the currency, for example LifehackerCoin, and choose a ticker - usually three or four letters that will briefly represent the coin. We'll take the LHC.

2. Then you need to set the maximum value of tokens: how many of them will exist in nature. For example, 10,000.

3. It is also worth determining whether the coin will have a division into small parts, how the ruble is divided into pennies or the dollar - into cents. If so, it is up to you to decide how many parts one unit can be divided into.

4. The finished data needs to be transferred to a smart contract on GitHub. To do this, you need to download two documents that end in.sol. We insert the data of six public variables:

• name - token name - LifehackerCoin;
• symbol - symbol, abbreviated name - LHC;
• decimals - the number of characters after the decimal point - 10;
• totalSupply - the total number of token units - 10,000;
• balanceOf - mapping (the process of drawing up a diagram of what data should be exchanged, how it will be used), which contains the balances of addresses;
• allowance is a mapping that contains data on permission to spend funds from someone else's addresses.

5. After that, you need to deploy the data, that is, deploy it to the platform. It will take about 15–20 minutes to issue a coin.

System advantages

The advantages of the Ethereum network lie on the surface: the popular blockchain has established itself as the most proven and reliable for creating cryptocurrency.

Cons of the system

• Recently, due to a 700% increase in popularity, the network is experiencing great congestion. All transactions are carried out slowly - from 15 minutes or more, they become unprofitable due to the constantly increasing commission for transfers. Therefore, many projects are closed at the stage of creation and abandon the idea of issuing tokens.
• The network requires certain knowledge, so the creation of coins on Ethereum cannot be called a "one-click" process.

2. Ripple

You can create your own cryptocurrency on the platform, more precisely, on its XPR Lager credit network. It gives network members the opportunity to issue their own loans for any purpose, issuing tokens that can represent the value of any asset: currency, property, services, and so on.

Loans are electronic promissory notes, digital bills of exchange are the promise of the issuer (creator of the currency) to pay the holder the designated value of the new coin. It is at this moment that an interesting feature of the Ripple platform appears: having issued your tokens, you cannot distribute them to everyone in a row.

How to issue a coin

1. Go to the site - this is not only an exchange, but also an interface for the wallet to work with the Ripple platform. The principle of operation of this site is similar to the principle of operation of MyEtherWallet, where you can create and work with Ethereum wallets. The World Exchange allows you to create a Ripple wallet, fund it, buy and sell XRP (Ripple's digital currency) and other tokens, send XRP to other wallets, and most importantly, create your own tokens.

2. In the upper right corner of The World Exchange website, click on Login or Create a Ripple Account.

3. If you have created a new address, to get started, you need to send at least 25 XRP to it: 20 XRP to activate the wallet and 5 XRP for opening an order to issue a token. This can be done using any cryptocurrency exchange that supports XRP withdrawals.

4. To issue a coin, select Issue in the site interface on the left, specify the amount and ticker of your token, as well as the price and ticker of the token, which is the base currency of your token. Of course, you can choose USD, EUR or any other as the base currency. But if you use XRP as the base currency, the value of your token will be automatically converted at the current exchange rate for any other currencies.

5. After issuing tokens, do not forget to add the defaultRipple = true parameter in the settings, which will allow holders of your token to send it to other wallets.

System advantages

Ripple is one of the most popular platforms in existence. XRP coin ranks third in terms of capitalization. When creating its coins, the network automatically organizes a trustline - a line of trust that is associated with the issuer's wallet. The point of trust lines is that no one can send you their tokens without your consent. For example, a scammer might issue tokens with the ticker BTC and send them to you, claiming that these tokens are backed by bitcoin.

Cons of the system

• To transfer coins, the recipient's wallet must trust the wallet of the issuer of the cryptocurrency, that is, you. This process is similar to transferring data over an Airdrop to an iPhone: photos from your last party will not be sent to your friend until he gives you permission to do so.
• To activate the Ripple address, you need to transfer a reserve of 20 XRP - this is how many coins will always be in the wallet and will never be withdrawn from the account. Even if it is necessary, it is still impossible.

3. NEO

Another alternative platform for creating cryptocurrency is. It is called the Chinese Ethereum for the similar functionality of the systems and purpose.

How to issue a coin

The process of creating your own crypto coins is no different from Ethereum. The only thing is that in order to issue coins on NEO, you must comply with the NEP-5 standard.

1. Go to the NEO website, click on the Client tab.

2. Download documents from the NEO-GUE and NEO-CLI section.

3. Fill in the details of the coin and upload it to GitHub.

System advantages

Unlike its main competitor, Ethereum, the Chinese platform NEO supports several programming languages: Java, F #, C #, Kotlin, VB. Net, Microsoft.net, Go, and Python. This is beneficial for companies looking to issue their coins. NEO currently supports 1,000 transactions per second and does not charge transaction fees.

Cons of the system

• To launch a token on NEO, you need to pay about 500 GAS coins - a network token with which a commission is charged (depending on the exchange rate, about $ 50,000). Also, creating your own assets on this platform takes a lot of time.
• Users doubt the decentralization of the platform, since all the coins of the project belong to the OnChain company. This means that the issued NEO coin will be controlled by the company's closed community, and this is contrary to the principle of cryptocurrency.

4. Minter

Not so long ago, a project started with its own blockchain, on the basis of which you can release your own cryptocurrency. Within the network there are BIP coins - Blockchain Instant Payment ("instant blockchain payment"), or bip, each of which currently costs about 6 cents, but in the future the price will rise. Beeps will become the basis for new cryptocurrencies, which gold was for the dollar. Moreover, the reserve creates absolute and instant liquidity for all market participants, since any coin can be exchanged for any other in just a couple of seconds and without an intermediary.

How to issue a coin

1. It takes about 2 minutes to create your own coins. On the project website, you need to register and then enter the data for the token itself. What it will be - each user decides independently. Coins can be integrated into your business or tokenized any activity where it is necessary to make large transactions in a short time.

• The name of the coin - for example, Lifehacker.
• The coin ticker is an abbreviation of 3-10 uppercase Latin letters.
• Issue quantity - this is how many of your coins will exist in the world.
• The number of reserved BIPs - liquidity provision using the main currency of the Minter project.
• CRR - is responsible for the constant reserve ratio of the BIP as part of the new issued.
• The coin for paying the commission is one that will be similar to Gas on Ethereum.

2. After filling in all the lines and pressing the "Create" button, the user automatically turns into the owner of his own cryptocurrency, which can be exchanged for other coins issued in the Minter network, the main cryptocurrencies - everyone's favorite bitcoin, as well as the fiat currency, familiar to everyone - the US dollar.

System advantages

• BIP, like any other currency issued on the platform, is quoted by the market. This means that coins, unlike other platforms, have real collateral. Yes, the currency can take off, it can fall, there is nothing special about that. BIP, on the basis of which the user will create his own coin, must be purchased. So, for example, if we pay 1,000 BIP for the Lifehacker token and set the CRR to 10%, then we will receive 100,000 coins at the issue. The average price of 1 LFH would be 100 BIP.
• Everyone can get BIP coins from the project itself. To do this, you need to register in the Telegram bot and wait for the free distribution of tokens (Airdrop), which will begin after the launch of the main network.

Cons of the system

So far, the Minter project is included in the startup category. Otherwise, the system demonstrates its readiness to work with a large amount of data and, most importantly, the platform can provide a base for the release of its cryptocurrency.

The main thing is to choose a platform that suits your needs and constantly monitor its activities.

Whichever method of creating a cryptocurrency you choose, remember that the blockchain of any project requires attention, so you should constantly be interested in updates and innovations of the network so that the coins are intact. The release of your cryptoasset takes you one step closer to truly new and progressive technologies that will help simplify many of the economic processes associated with money transactions.