Cryptocurrencies have grown enormously in popularity since 2016. Especially in 2017, there was a proliferation of new cryptocurrencies. With an ICO you can raise quite a bit of money. More and more companies and individuals are developing their own cryptocurrency. Difficult? No, anyone with some technical knowledge can make a cryptocurrency themselves. What is an ICO?
ICO is the abbreviation of Inital Coin Offering. This is the issuance of a new cryptocurrency, with the aim of raising money. This is a great way for starting companies to obtain a starting capital. ICOs are very popular among investors: after issuance, they often become worth a lot more. This is the reason that crypto investors are looking forward to new cryptocurrencies.
As a company or private individual, you can take advantage of this popularity by making a cryptocurrency yourself. This is what the law says about making cryptocurrencies yourself
Companies that go public must meet all kinds of conditions. In addition, they are closely monitored by a so-called ‘stock market watchdog’. This protects investors well against fraud. What about the issuance of new cryptocurrency? In the Netherlands and many other countries, this is not regulated anywhere. This means that anyone can make their own crypto coins and spend them.
In certain Asian countries, the issuance of ICOs has been restricted. This may also happen in Europe in the future. So quickly make your own coin. The idea behind a cryptocurrency
Some crypto investors buy cryptocurrency without knowing what the coin stands for. However, there are also investors who first look at what the idea behind a coin is. What do they get in exchange for the purchase of this coin? Is there a service in return, can they pay with it at the bakery or do they invest in a nice project?
Once upon a time, someone managed to raise more than $1,000,000 with his Useless Ethereum Token. The idea behind his coin? Publishing new televisions.
Dogecoin is an example of a useless coin. This cryptocurrency was once developed for fun. The developer wanted to show that people indiscriminately invest in a cryptocurrency. Despite the crappy idea of this cryptocurrency, it is still traded.
Whatever project or idea is behind a cryptocurrency: this is always described in the White paper. This way, investors can see where they are betting their money. Here’s what you need: a computer with internet
To make a cryptocurrency yourself, you need a computer with an internet connection. Do not try this from a smartphone, that does not work. You have two different options for creating a new coin or token. Make your own cryptocurrency with bitcoin
First of all, you can use the existing bitcoin. Here you download the software of this cryptocurrency. Then you make a copy of it and give the new coin its own name. Is it allowed to clone bitcoin? Yes, the codes are open source on the internet. This means that everyone can use it.
The new coin must have something better to offer than the original Bitcoin. There is also always a chance that malicious parties will ‘mine’ your new cryptocurrency. Others use the computing power of their computer to undo old transactions. In this case, your self-created coin becomes worthless. Create your own cryptocurrency with Ethereum
Want to make a cryptocurrency yourself? The second option is to use the Ethereum blockchain. For this you dive into the standard codes that can also be found on the internet. Ethereum works with ‘smart contracts’. You add extra functions on top of the existing blockchain.
Keep in mind that with the Ethereum blockchain you pay for every transaction. The value of the new currency must therefore certainly be higher than the costs per transaction. Being admitted to cryptocurrency exchange
A cryptocurrency must be tradable. This is done on a cryptocurrency exchange. Those who make a cryptocurrency themselves must ensure that it is for sale through one of the many trading exchanges. You do this by contacting a crypto exchange yourself. This ultimately determines whether it allows the new cryptocurrency. Create your own blockchain
If you don’t want to be dependent on an existing blockchain, you can make one yourself. Creating a blockchain yourself is a lot more complicated. This is not easy to do. Only the best programmers can develop their own blockchain. If you have no knowledge of this yourself, first follow a course or leave this work to the professional. Keep a number of cryptocurrencies yourself
Do you spend all your new cryptocurrencies or do you keep some yourself? It is always wise to keep a number of coins yourself. Suppose the value rises considerably, then it is a shame if you do not own anything yourself. Moreover, with some crypto coins in your possession, you can always decide whether there will be more ‘on the market’. Spending money raised
With the issuance of your ICO, a lot of money has been raised. How should or may you spend this money? Because there are no rules attached to the issuance of new cryptocurrency, you can decide this yourself. The fairest is when the money is spent on what is in the White Paper. However, no one can check whether this actually happens.
Do crypto investors feel like they’ve been scammed? Then they can report this. For example, there were previously a lot of complaints against the Dutchman ‘Joost van Doorn’, who issued an ICO and ran off with the money. However, no one knew who the man really was. That is the dark side of the anonymous around cryptocurrency.
