The Bootstrapper's Guide to start your own Cryptocurrency
When you look at the complexities that go into making a physical dollar bill it is plain to see why most people do not 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. However, coding is not the only step to getting your digital currency off the ground. While crypto currencies such as Bitcoin are relatively top in the market, there are still opportunities for new players to enter the scene and make good money. These opportunities will not last forever, though – as a market matures, it gets harder for new players to successfully enter the game and make money from it.
The early adopters of a popular currency make a huge profit. They get to mine the currency with very low competition. Of course, knowing this, many people have created their own currencies. Most have never caught on; to be successful, you either need to be first (Bitcoin), or you need to be the best, by including new features that other cryptocurrencies do not yet support.
Here are few benefits you will enjoy by starting a own crypto currency:
Independence and flexibility
Starting your own Cryptocurrency means you’re the boss! You will have more freedom and independence working for yourself; you take all decision prior to technical knowledge to develop your best practices approach to branding a digital currency. Being your own boss means you can work when you work best which should result in you being far more productive. It also means you can work where you want as well, so if you love travelling, you could spend some time to reach an audience that may be looking for a new way to pay for goods or services.
A sense of pride
There’s nothing better than building your own successful digital currency. Making your dream a reality, and knowing that all your hard work has finally paid off is a great feeling and is worth the stress and long hours it took to get there. There are also ways in which you can gain validation from professional bodies that sets you apart from your competition and intrigues your target audience. Just knowing you are in the small percentile of startups that made it past the first year is a great accomplishment.
Developing your own currency means that you are going to reap directly the benefits of your online payment platform positive financial performance. For example, as a CTO for an online payments platform, the development of your own digital currency can be of benefit to small business customer base and set you apart from other payment processors.
This is a great motivating factor, as it means you are 100% committed to the success of the platform and cannot just sit back and coast. In addition, you will have control over the payment process because you will have built the actual currency in use and know everything about it rather than relying on any third-party provider.
Never doing the same job
When you first start your own currency, you will be going at it alone, which means you will be head of every department, from HR to finance. Having so many different jobs to do will help to keep you on your toes and stretch your abilities to the maximum. If you are someone who does not like doing the same job every day of the week, then the variety involved in running your own digital currency may really appeal to you.
Choosing your own team
When you are working within a big team, there is a chance there will be someone is compatible with your style. A certain skill level is necessary to create your own cryptocurrency brand. You will definitely need some technical expertise on your team in the form of a developer that has some working knowledge of how digital currency works, and the blockchain technology behind it.
When you have your own currency, you do not have to worry about this, as you will get to handpick your team. If you surround yourself with positive and competent people, everyone will benefit and it will be easier to move the business forward.
Few Tips to Create Your Own Cryptocurrency:
Define the benefit for end users. Does your new coin provide increased convenience, new thrills, or the ability to profit without much investment? Whatever the benefits are, articulate them precisely.
- Establish a global goal and keep it in mind. As the corny but wise ones say, “If you shoot for the moon and miss, you'll still end up among the stars.”
- Write the code yourself. But before writing it, think carefully think about the choice of programming language. Make sure the choice in language aligns with your numbers one and two.
- Don’t seek for approval until you have a prototype to show. It's too easy to be misunderstood by others.
- You don't need to be a people-person. You don’t necessarily need to team up with others to create your project. Just write the code.
- Don’t search for investors. If your creation is good, they will come.
- Don't beat yourself up if you miss your personal deadlines. The coding and refining process may take a lot longer than you thought it would.
- Relentlessly search for vulnerabilities. Think like a hacker who wants to break into your cryptocurrency, and start there. Show your project to IT experts as soon as possible so they can point out the weak spots that you miss.
- Kill the perfectionist within. It's more important to deliver a workable product in a timely manner than a perfect product in the far and hypothetical future. If your code succeeds, it will likely be rewritten from scratch by a professional team anyway!
- Be able to explain the nature of your project in 60 seconds. It's called an “elevator pitch,” and you need to have one.
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.
“Overselling your coin will backfire. Including novel feature sets just to try and stand out will not work either. The market is there to test your grit and determination. You need a group of loyal miners committed to the cause who will process your payments even during slumps in price because they believe in the eventual outcome. It’s about good communication and team building.
“Many coins have failed because they undervalue the ‘soft stuff.’ They think that throwing technology at a problem will make it disappear. Central banks think throwing money at problems does the same; the world has never worked this way. You have to be good at knowing what work needs to be done and be prepared to do the jobs nobody else wants to do.”
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.
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