How To Create Your Own Cryptocurrency

First we need to know, what actually the Cryptocurrency is ….

A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

When you look at the complexities that go into making a physical dollar bill it’s plain to see why most people don’t start trying to print a new form of currency every day, but making a new digital currency is surprisingly easy for someone with even basic coding skills. But coding isn’t the only step to getting your digital currency off the ground. Here are the five steps you should follow according to the makers of three cryptocurrencies.

1. Think about the community first who is going to use it

The first step is to find a community and build a currency around them rather than building a currency and expecting everyone to show up,” Ellis says. “It has to be sensitive to their needs and be relevant to their cultural heritage and background.”

 2. Code For The Long Run

Coding your cryptocurrency is usually the least time-intensive part of the process. That’s because virtually every cryptocurrency on the market today is based on the open source code of Bitcoin or Litecoin that is available on GitHub.

“The creation itself does not take long. It is maybe only a day,” says Peter Otterbach, one of the creators of Coino, which bills itself as the fastest cryptocurrency on the market with a maximum transaction time of only 50 seconds. “To start coding you just need to know about C++ to build your own features in it.”But just because anyone with some C++ skills can make their own cryptocurrency doesn’t mean that there will be as many currencies as, say, iOS apps one day. “Feathercoin is in fact a fork of Litecoin,” says Ellis. “It began with the minimum number of parameter changes because we felt the most important feature of a currency was survivability.”

3. Get Miners Onboard

Once you’ve developed your coin you need to spread the word so people start mining it, which raises awareness of its existence and hopefully begins to gain some value in the eyes of its miners and users. This is where makers of cryptocurrencies need to stop thinking like coders and instead look into how human beings put trust (and value) in things.

“A good start is half the way there and so this involves building trust, expressing your vision and intentions to miners, who have the hardware you need, and getting them on board with the opportunity ahead,” Feathercoin’s Ellis explains. “You have to be honest and respect people’s expectations and their tolerance of risk, which many people overestimate.

4. Know Your Merchants

Let’s says you’ve made it this far. You’ve conceptualized a good cryptocurrency and brought the right team together to code and nurture it along its way. You’ve spread the news around the cryptocurrency forums and there’s a healthy dose of miners actively working to grow your currency. The next step is marketing your currency so all the people mining it have a place to spend it. This is no small feat. After all, you need to convince individuals and merchants that these digital bits you’ve created hold value and can be traded for things, just like traditional, trusted money.

“It’s a process of confidence building,” Ellis says. “It takes good stewardship and time to work out what you really believe and stand for. People will buy in to your motives more than your actions, so once you feel confident you then have to start talking about your currency to friends, merchants, on Internet forums and on social media.”

5. Global Acceptance Is Not a Step

The last step in your cryptocurrency journey is, according to pundits and conventional wisdom, world domination by your coin. But given that in over 5,000 years no single currency has dominated the globe, it’s very unlikely–no matter what Silicon Valley Bitcoin enthusiasts say–that any one cryptocurrency ever will.

Besides, global cryptocurrency domination “doesn’t have to be the goal,” Ellis says. “Currencies can be local, indeed we think of Feathercoin as a local currency that can serve a global market.”