Bitcoin, Ethereum or Ripple, despite being the most important, if measured by market capitalization, are not the only ones. There Are more than 2,000 today, and more likely to arise.
The idea of this article is to help create your own Cryptocurrency, but always from a point of view to add value to this ecosystem and not bring to life a new project that brings nothing new under the sun.
Therefore, before starting to see the guide, it is necessary to take into consideration three fundamental aspects:
You Need a good idea
If We just want to build a coin or token for the simple fact of having one is a bad idea. As we saw before, it must have some kind of purpose, a value to offer to society.
Getting People’s Trust
The success of a Cryptocurrency is basically in the economy of scale, that is to say that the more people use it these generally have more value. For that it is necessary To build and maintain a community. This is not a simple task at all, but it is worthwhile to devote effort to it.
You Need to learn how to program and cryptography
It Is very easy to hire people to do this task for you. But even if this is the case, you need to understand what you are trying to create, otherwise. You don’t even know who to look for at first.
This is just the first steps we should give if we want to create our own crypto, but they are not the only ones. Throughout This article we will see a series of important aspects that lead us to develop, at least in a general way, a Cryptocurrency.
If you stay until the end you can understand roughly how important are the points that we saw so far and how they are linked to give life to a Cryptocurrency that is useful for people.
- 1 Introduction
- 2 Ethereum vs NEO
- 3 Cryptocurrency vs Token
- 3.1 Initial Coin Offers (ICO)
- 3.2 How do we create a Cryptocurrency?
- 3.3 The Idea
When creating a Cryptocurrency we can take two completely different paths:
Create our own blockchain that provides support to our Cryptocurrency.
Use a platform like Ethereum or Neo, or some other similar, that allows us to create a token.
The difference between token and Cryptocurrency is subtle, but it is important to understand it. Especially when we are looking to create something that is related to them. However, for practical purposes, we will often refer to the two indiscriminately.
The decision goes more than anything in case we plan to build something from scratch, that is, programming the blockchain completely, along with its protocols. Or instead we prefer to use something already existing and provide enormously a part of the work.
About the second option. We have a very popular platform like Ethereum, which has the advantage of having thousands of projects built on it. While NEO is something newer, it greatly improves scalability problems while allowing you to work with languages known to almost any programmer.
Ethereum vs NEO
Being these two platforms blockchain very important, it is interesting to make a comparison that allows us to see their similarities and differences in a detailed way. There Is An article that aims to compare exhaustively both (Ethereum vs NEO), but if you prefer you can read this brief summary.
Tokens built on Ethereum are called ERC-20. This is a very popular choice for people because it is a highly valued Cryptocurrency (currently the third), in addition to the first to offer this service that I mean a big explosion in the creation of digital coins.
NEO is very similar, but the main difference is what I get to improve those aspects where Ethereum was not fully consolidated, such as the ability to validate transactions on a large scale.
It Uses the standard of tokens called NEP-5, allowing people, as well as with Ethereum, to create both applications and tokens. This would Be the second most popular platform for these services.
While the popularity and trust the community has placed in Ethereum is very large, NEO has an advantage that I think is worthy at least to consider.
With This platform we can program using different languages, among which we find a very widespread in its use as C++ and Java. For its part, the third most valued Cryptocurrency allows us to do it with Solidity, a language created for this blockchain in particular.
Cryptocurrency vs Token
The advantages of creating our own blockchain with your Cryptocurrency is basically that we have the creative control over the block chain. It Can thus determine how this should behave instead of following the rules of another already established. The main drawbacks are that it is quite expensive, both in terms of money and time, and that it requires people with extensive knowledge of the subject.
The tokens, on the other hand, do not require that we build a whole blockchain to work, saving time and money, added to the headaches that this can mean. Not only you have to design and develop it, you also have to prove that it works correctly, something that the platform has already done for us.
Creating a token or a dapp (decentralized application) still requires you to invest a lot of time and funds in it, basically to hire an excellent team to help us. But without a doubt, this is much cheaper and easier than having to build a whole chain of blocks starting from scratch.
Initial Coin Offers (ICO)
Traditionally, companies when they needed funds to continue expanding resorted to exchange shares to sell their own. This is known as the Initial Public Offering, where a «role» is exchanged representing a portion of the company.
In the world of Cryptocurrency we have something similar, the known ICO, or Initial Offer of Coins. This is the way teams are behind projects to raise funds that allow them to continue to develop their idea. The difference is that instead of getting actions people end up with tokens.
A special condiment to achieve success in an ICO is the trust that people have about the project. The most successful features usually have large developers and founders teams, along with a detailed and realistic roadmap. This is the way people have to teach inverses what they will do with their money and what the goals are in the future.
In the rest of the guide we will focus on one of the two ways we can take, Because if we do not have millions of dollars in our bank account to create a chain of blocks from scratch and its Cryptocurrency, or simply want to take the easiest route and create on the Go already existing, then we will leave aside all the technical and expensive aspects that involve creating everything out of nothing. We will See how to develop what is called a token.
That Yes, this can be one of type value, which implies that it behaves exactly like a Cryptocurrency, so do not worry if they have come here and think that the guide changed his course. The name token is just a distinction, because it is a coin running on top of another project, nothing else.
How do we create a Cryptocurrency?
If we need to raise funds is the ICO the path that will allow us to do it as quickly as possible, although this does not imply that it is simple. If we want the ICO to be successful here are some tips that will be very useful:
We Need a great idea. That’S why we need To answer questions like is this blockchain project going to help a specific industry? What problem do you solve?
We Need A great work team that is familiar with the ERC-20 or NEP-5 token creation protocols as far as possible. Or failing another.
This team must also have experience in creating smart contracts for ICO. They serve so that when people send a number of coins to invest in the project, in return they receive the corresponding tokens.
A professional external Auditor. This will review the tokens and the smart contract to make sure they are safe and there is no easy way to hack them.
A well-written whitepaper. The well-known white paper is a serious written document where we present the idea, the problem it tries to solve, the roadmap and how our particular technology works.
Someone who manages our marketing campaign. Both the Web site, the social networks, the creation and management of communities in forums and different media is an important aspect to get traction in the project. It takes someone who can do this job, with experience in other projects if possible.
This step is the most important of all, an idea that helps in a particular industry can make the difference between failure and success. It Can for example eliminate an intermediary, along with the commissions and times that this implies, or it can solve real-world problems like poverty or access to education. There Are Many things to improve in the world today.
It Is important that they deal with real problems, where the blockchain technology can help and it is really useful to use it. If we only look to use the chain of blocks because it is the novelty but it does not make sense for the project, or If there is a real benefit for the people, then it is difficult not only that people invest in it, but that they do want to use it. In short words, which creates value.
There Are Many industries that could give you an idea to start developing your idea: file storage, Content service, insurance, marketing, finance, medical and energy services, etc. Many of these already have developing projects, which does not imply that there can be no place for another, or just a better version of what exists so far.
The Development Team
The team is the cryptocurrencies is the most valuable asset, they are the ones that can greatly make the difference between success and failure. No matter the idea, the solution or anything like that if the team is not up to the occasion. Even pivoting, a term of fashion between startups, is something possible only if the team is aware and does a good job.
The idea is certainly very important, but it is worthless if you do not have a talented team working on it. Even if the idea at first is not the best, it can mutate during the process, but it necessarily requires people capable of being able to see the problem and solve it. It is best to have experienced people, or at least a great initiative to learn all the time and improve.
To find people like this, the easiest thing is to start getting involved with the blockchain communities. Going to Events is a good start, allowing you to connect with people and build relationships within the industry.
On the other hand, there are thousands of books that talk about human resources and how to find the best. Learning about this can pay big dividends when it’s time to hire and attract really interesting people to your project.
We’Ve Already seen how important smart contracts are for a project. If you don’t know what they are and you’ve read our guide, let’s quickly see what the utility is.
A smart contract is like a traditional contract, although perhaps there are some small differences, which are digital, run on a blockchain, run automatically and cannot be modified.
Within a smart contract we find rules written in code form. In the particular case of an ICO, these are of the type IF a user sends 1 ETH or 1 BTC to this intelligent contract THEN the same one sends 10 tokens of the currency to the user.
All this does it automatically, ie there is no third that controls the process. This point is important because there is no need for someone to take the job of doing all this, and there is less chance of a human error.
Trust we put in the smart contract, which is only code. As Long As You’ve been a developer right, this can’t do anything other than that. This means that you will always pay the exact number of tokens and send them at the time you have established them.
Smart contracts are developed by project developers, so we can set different rules to work as we like. For example, send the tokens immediately when the investor sends the funds, or wait for a certain time after the ICO has finished.
A professional external audition
While we can have great professionals working for us, they are still human, and therefore is expected to make mistakes. People can trust that they will do a good job, but they will do it more if there is a professional behind who audits everything externally to provide greater security.
With This we not only manage to make investors and users feel safe with the project, it also gives us a peace of mind about security. If tomorrow something happens because the code was misspelled, not only people will feel bad, it will be us who see how the project sinks for something that could have been easily solved.
External audits bring to the project an air of legitimacy that is well worth taking the job of creating. These same many times are known as security audits in ICO, and we can get them from different companies that are dedicated to this. The options are several, but we must try to choose one that has credibility and a long history in the market.
This will finally pay dividends, we’ll feel more relaxed and help promote the project better. If he himself follows industry standards and data protection policies, he adds an extra value.
A correctly written whitepaper
This is a step we can’t let go of luck. A Cryptocurrency, or rather its success, depends enormously on how well this writing this promotion document. It Is the way in which investors Are judged by the project, and we cannot take their clothing lightly.
Some tips for writing a whitepaper that really inspire confidence are the following:
This must be in a PDF format. Allowing it to be accessible for different operating systems and browsers. This to make the format as standard as possible and do not worry how a person can see it if you read it on your iPhone or on your computer with Windows.
Some usually create two versions of this document. For example a normal whitepaper of between 20 and 100 pages, and one in summary version of between 2 to 8 pages. The latter is only a shorter version where the most important information is highlighted.
Grammar is extremely important. It should Not contain spelling mistakes and should be readily readable by anyone. If possible this task should be entrusted to a person who excels in writing, perhaps even outsource his writing.
Language should be at least in English, but this does not imply that it does not translate into different languages. That way you’d be reaching more people. While English is the most widely used in the world when it comes to communicating between people who speak different languages, it is never too much to find a translator to help us.
We Already have a brilliant idean, brilliant development team and intelligent contract to distribute our token along with a whitepaper that would make Satoshi Nakamoto proud. It’S time for us to start thinking about how to promote our ICO.
For that it is necessary To create a community, that not only is loyal, but that it trusts us. For that it is necessary to have at least a website, a good domain name and presence in the most popular social networks.
Let’S See What tools can help us in this task.
Social networks that we should at least create and encourage to grow are LinkedIn, Twitter and Facebook. Although If we really are serious about our project we must continue with YouTube, Instagram, Pinterest and even Snapchat. In fact, to all that we are humanly possible, although there are some that may be better adjusted to our particular project.
We can do This task ourselves if we have some experience, or hire a team to do it for us. All in pursuit of creating a great campaign that helps promote and increase the popularity of ICO.
Credibility is very important, and in the media is where we are going to get it. People who are seriously looking for these projects read information in recognized media, so an article in these well-written can make the big difference.
If we want to get some deals we can do it on our own or hire someone. It Is important to consider that it is not easy to get to do business of this type with big media, so the task demands time and money. The more popular, the more we will be asked for that article.
If we want to accelerate things, especially social networks, we can always achieve greater growth if we are willing to pay. Facebook Ads and Google Ads were two excellent platforms if we seek to make known our ICO, but lately have stopped allowing such ads.
Fortunately there are still places, like LinkedIn and other platforms, where we can pay in exchange for visibility.
This is one of the most interesting methods, and it is advisable to start doing it from the first moment. Because If we have our own blog we can talk about what we want to achieve and the evolution of the project. It is Also useful for gathering emails from interested people and keeping them updated through the mailing list. It Is The easiest when we have fresh news about the project that might interest them or we want to promote our ICO.
Managing the Community
It Is Good to have a place where the whole community can meet and talk to each other and ask questions. One of the most popular apps among the cryptocurrencies communities is Telegram. This is a messaging application similar to WhatsApp or Facebook Messenger, the difference is in the known aspects of security that both weight the crypto fanatics.
Having a properly managed Telegram channel is practically essential. It Not only serves to promote your product to the community, but it helps build a relationship with all those who supported the project.
The Forums are also an interesting tool that is well known to all over the world. It Is A place where investors come when they seek to investigate a project, because they like to know what people are saying about it and how much interaction the team has with them.
Whether you use either of the two options, it is best to have a community manager or a team to manage the whole thing in the best way. This will depend on how popular ICO can be, saving a huge amount of time for other members of the Working Group.
Yes you are quick to answer and you do it the right way community members will trust you. So don’t discard the idea of having team members all over the world who are available to answer questions while another is sleeping. This is how you make up a group that answers your fans ‘ concerns 24 hours a day.
There Are Services that offer this type of support, and that can provide you with a series of solutions for your project in relation to the management of the community. Some have experience even in working with ICO.
With This we end this extensive tutorial, which covers both technical aspects and the rest of the work that involves creating a successful Cryptocurrency through the process of obtaining funds through an ICO.
Everything should start with a great idea, but we do take the examples of many startups, this can pivot or grow in different directions. Competition is not easy if today we see listings more than 2,000, along with many others that are not sufficiently known. That’s Why we need a great solution for a real problem.