Cryptocurrency is viewed with more interest in the digital world now. Its value is soaring and many institutional investors are pumping in more money. Bitcoin was the first cryptocurrency to emerge back in 2009. Now, we have more than 4000 different cryptocurrencies supported by robust blockchain networks.
Here are some Vital Factors to consider while Creating Your Own Cryptocurrency
- Raise an Adequate Amount of Funds — Finance is the lifeline for every business. It is used for running the daily operations as well as for future expansion in the market. While every firm that wants to enter the cryptosphere cannot get the support of a leading venture capitalist, they can opt to raise funds in an organized manner through an ICO (Initial Coin Offering) or an IEO (Initial Exchange Offering). This will ensure global investors back your project.
- Think About the Benefits to be Offered to the Users — The users need to be given attractive incentives for purchasing your Cryptocurrency. An inbuilt rewards system will go a long way in attracting new users to your platform based on the referrals made by existing users. Utility tokens are an effective way to gather more interest from the target audience. Once you have launched a utility token in the market, the holders of the token can either opt to sell or redeem it for the services that you provide. Users can get various benefits by using Cryptocurrency like anonymous processing of transactions, reduced operating expenses, and security for their funds against an economic downturn.
- Choose the Right Blockchain Network — The blockchain network acts as the backbone of Cryptocurrency. It maintains a distributed ledger that records all the data in an immutable manner. You have to integrate blockchain technology into your Cryptocurrency in the right manner. You can build your cryptocurrency on your blockchain network or create it on an existing blockchain network like Ethereum, NEO, Waves, EOS, and Multichain.
- Have an Experienced Team in Place — The team needs to comprise blockchain developers, legal experts, financial analysts, marketing managers, and smart contract developers. This will ensure that your project becomes a grand success.
- Prepare a Comprehensive Whitepaper — The whitepaper should be written by a professional and must include details about the technical, legal, and financial aspects of your Cryptocurrency along with a timeline of the project and the background of the team members. Get it translated into multiple languages to attract investors from many countries.
- Market your Cryptocurrency — Once you know how to create a Cryptocurrency, promote it aggressively across multiple communication channels to obtain more trust and confidence from users. You can market it actively on social media, share press releases, write insightful blogs, share newsletters as part of email marketing, and publish paid content in the form of advertisements or sponsored posts.
- Make your Cryptocurrency Legally Compliant — With regulatory authorities across the world fastly catching up in recognizing Cryptocurrencies, it is important to follow the regulations issued in your jurisdiction and ensure complete due diligence.
The Current Status of Cryptocurrencies in the World
- It is one of the safest modes of digital payments that can be used for transferring funds in case of remittances and also for peer to peer transactions.
- It acts as a medium of exchange, a store of value, and as a unit of account.
- Cryptocurrencies can be used as a hedging instrument against inflation.
- It is immune to any government regulations, unlike fiat currency where governments and banks can change their supply, modify their exchange rate, and control its value.
- The user has full control over his funds and need not depend on any intermediaries in the system.
- It is not only bought regularly by retail investors but many global banks, technology companies, and countries that are investing actively in digital currencies.
- The crypto economy’s market cap recently crossed a whopping $1 trillion.
Hence, as seen above, a digital economy is fast emerging and Cryptocurrencies are witnessing a bullish run of late with positive sentiment from investors. Progressive regulation and different use cases will drive its adoption in the years to come. It is still viewed as a high volatility investment but can potentially generate huge returns in a short time.