How To Create Your Own Currency Online And Trading Platform?
With the rise in blockchain technology and the cryptocurrency market, people are looking forward to becoming a part of the digital marketplace. The whole of digital trading takes place because of the digital coins. These coins are the soul of the crypto business. Therefore, the first step is to create your own digital currency. As blockchain is making a good place in the market, people are developing more interest in how to create your own currency online. In order to help you with creating an online currency and trading platform of your own, we have written this blog to complete all the information that you would need to know.
Starting Your Own Currency Online
If you have read our previous blogs, then you already know almost everything about what a cryptocurrency is, its importance, pros, and cons of cryptocurrency, cryptocurrency business, starting a bitcoin exchange, blockchain technology, etc.
Digital currencies are just like normal currencies but on an online platform. Unlike normal currencies, these currencies can be used globally using the internet. There are coins and token involved in the digital trading platform.
Before, starting with how to create your own currency online, lets first know the basic difference between a coin and a token.
Difference Between Coins And Tokens:
The first thing to remember is that both tokens and coins are digital currencies or cryptocurrencies.
A coin runs on its own blockchain. The blockchain consists of a record of transactions that are secure on the blockchain network. Because of this reason, the coins have their own ledgers for digital transactions. Also, coins help to transfer money only with the help of different cryptocurrency exchange software.
Whereas, tokens are often released through initial coin offering (ICO). These can be exchanged for existing coins that then fund projects like digital wallets, online games, etc. Also, unlike coins, they are dependent on the underlying network’s technology for verification, security, and ownership of transactions. Furthermore, tokens can be used for anything, for instance, tickets, physical objects, online games, etc.
To sum up the main differences between token and coins:
Tokens cannot purchase coins while coins can purchase tokens.
Tokens work on existing blockchains but coins work on their own specific and unique blockchain.
The token usage is limited to specific projects and cannot be used anywhere whereas coins usage is not limited and can be used everywhere and anywhere.
For instance, tokens are basically the points that frequent customers earn. These points can help you get a discount, a freebie, or special customer treatment in that specific company. These points can also be earned using money which we can say is the coin this context. But we cannot redeem the points for money. Hence, crypto coins can be used to purchase a business’s token, but cannot purchase crypto coins using a token.
Why Create Your Own Digital Currency?
Once you know about the difference between different digital currencies, the next step is to know why it is important to create your own currency online. So, pros of creating your own cryptocurrency are:
Funds are secure
No fraud risk involved
Transactions are anonymous
Transactions are quick
No third-party is involved
Easy of accessibility
Less operating costs involved
How To Create My Own Cryptocurrency?
You can create your cryptocurrency in two ways:
Create cryptocurrency from scratch using blockchain
Create a bitcoin fork
Cryptocurrency from the blockchain method: In this method, one can have full control of the code of the coin. You can even customize the coin and develop unique features as per your requirement. In addition to that, you can set all the parameters of the coin including the supply of coin, the rate of a coin issue, and the size of the blockchain.
Bitcoin fork method: In this method, one can completely rely on the open-source code for the creation of cryptocurrency. Few changes in the code can be made later to make it unique. Also, these open-source codes are secure, reliable, save time and provide you with a hacking free environment Creating coins using open-source code will provide you with built-in crypto exchange software from which people can trade new their cryptocurrency.
Cryptocurrency From Blockchain Method:
Before beginning with the step-by-step process to create your own currency online, you need to define your objectives. Know whether your business interests lay in smart contracts area, will focus on smart asset management or data authentication and verification, etc
The following steps will guide you to create an online currency of your own from scratch:
1) Select A Consensus Mechanism
The consensus mechanism helps us to create a decentralized environment. These mechanisms are protocols that make sure all nodes in the blockchain are operating at the same time. They then consider a certain transaction legitimate and add it to the block accordingly. You can choose the best consensus mechanism depending upon the objectives of your business.
2) Choose A Blockchain Platform
The base of selecting a blockchain platform is the selection of the consensus mechanism. Once you know your consensus mechanism, the next step is to choose the best blockchain platform according to your requirements. There are plenty of blockchain platforms, some of the most popular blockchain platforms of 2020 include:
3) Designing Of The Nodes
The building blocks of blockchain are then nodes. It is the nodes that make the blockchain efficient, supportive, and secure. You need to design the nodes based on the functionality of your blockchain. For example, whether the permissions be private or public? Will they be hosted on the cloud, on-premises, or both? What will be the necessary hardware details? On which operating system? Etc.
4) Development Of Internal Architecture Of Blockchain
The internal architecture of blockchain should be established carefully as once the blockchain is launched and is running, several parameters cannot be changed then. Hence, it is important to take most of your time in planning the internal structure of your blockchain platform. It is necessary to be sure of the key formats, block signatures, maximum block size, transaction limits, rewards for block mining, smart contracts features, multi signatures, key management, permissions, address formats, etc.
5) Get API’s
Some blockchain platforms do not provide pre-built APIs so make sure to know whether your blockchain platform does or not. There is no need to worry even if your platform doesn’t provide pre-built APIs. There are several reliable third party blockchain API providers, for instance, Colu, Tierion, ChromaWay, Bitcore, Block Cypher, Gem, etc.
6) Style The Interface
The interface is the means of communication between the Admin and the User. A good interface is necessary for smooth communication between your blockchain and users on it. So in this step, you need to take care of the web, mail and FTP servers, the front-end and back-end programming, and the external databases.
7) Make Your Online Currency Legal
The final step is to make sure that your cryptocurrency is prepared and following the trends around the international cryptocurrency regulations to protect yourself.
There you go with your own cryptocurrency from scratch.
Bitcoin Fork Method:
You can also create your own currency online by creating a Bitcoin fork. These are the two ways to create Bitcoin fork:
1) Using A Fork Coin Generator
If you lack programming skills then creating a Bitcoin fork using services like ForkGen might be the best solution. ForkGen is a digital coin generator. With it you can create a unique Bitcoin by changing some parameters and rules according to your choice.
2) Creating On Your Own
You can also create your own Bitcoin fork by following the given steps:
Visit Github and find the code of the coin you would like for yours. Then download and compile the Bitcoin code on your computer.
Then complete the programming. In this, you will have to reconfigure the code and create one your own by adding necessary changes.
Now public the new code on GitHub.
Finally, provide a website and a white paper.
Now when you are done with how to create your own currency online, next is to build an exchange platform to trade your coins.
How To Create Your Own Trading Platform:
As cryptocurrency is becoming popular, so is the need of trading platforms like cryptocurrency exchange software for trading these digital currencies. Nine simple steps to create your own trading platform are:
Decide the location of your business
Obtaining proper licensing depending upon the area you will be operating in
Generate funds for your business
Find a reliable partner to help you fulfill technological assistance
Connect your crypto exchange software with other exchanges to enhance liquidity
Partner with a payment processor
Add high security in your exchange
Go for beta testing
Launch your exchange trading platform
With the boom in cryptocurrency, it is now important for people to generate good profit and make a reputable place in the digital marketplace. How to create your own currency online and trading platform can become extremely easy using the steps mentioned in this article. Now all you need to do is follow the steps given in the article and become a pro in the crypto business from your home.