The volatile value of cryptocurrency can create an economic bubble with the consequent risk of bursting at any time. Therefore, it is essential to know in depth what it is about and how it can be created. To discover how a cryptocurrency is created , what it is and all the secrets about this asset, keep reading this oneHOWTO article.
There are different types of cryptocurrencies such as blockchain and bitcoin. These are increasingly popular terms in society, but their meanings are unknown. Therefore, before discovering how to create bitcoin or other types of cryptocurrencies, it is important to explain what cryptocurrencies or cryptocurrencies are.
Cryptocurrencies are a type of digital currency designed to function as a medium of exchange . Therefore, they share this same function with common or traditional currencies. And then, what is the use of creating a cryptocurrency? The answer is found in the differentiating elements it contains.
Types of cryptocurrencies
The most famous cryptocurrency with the highest market capitalization (65%) is bitcoin , but there are more types such as Litecoin, Ripple or Ethereum. Currently, there are more than 8,000 cryptocurrencies registered and it is estimated that there are about 20,000.
Creating a cryptocurrency from scratch requires several steps and a slow process so that its existence can be distributed and obtain a market value. These are the instructions to follow and with which you will discover how to create a cryptocurrency and earn money :
1. Creation of the cryptocurrency
Don’t know how to generate a cryptocurrency? There are different online applications with which you can do it. One of them is ‘Token Mint’, an application that allows it to be endowed with an economic value. The term token refers to a unit of value that is issued by a private entity.
After creating the cryptocurrency, you must fill in some parameters found in the drop-down menu of said application. All the steps are properly explained. Next, you must also pay the corresponding commission to the platform in charge of managing the process. Thus, an authentic address of the new cryptocurrency is available, this is the last step for the commercialization of the cryptocurrency to become a reality.
2. Distribution of the cryptocurrency
In order for the new cryptocurrency to be distributed, it is important to create a payment platform. In it, users would buy tokens with other cryptocurrencies or with euros. Another possibility is sending generated tokens to an exchange house or an exchange (platforms for exchanging digital currencies for other cryptocurrencies or money) so that they can be distributed in the general market.
3. Give an economic value to the cryptocurrency
The final step in creating a cryptocurrency is the value that is given to it. Once you endow it with a value, it is the market that is responsible for assigning a certain price. Thus, you will be able to justify whether the payment of the value initially endowed to the cryptocurrency is backed by a similar utility. The endowment of an economic value to the new cryptocurrency is not very complicated, so anyone can do it. However, this apparent simplicity carries risks of falling into fraud.
If you don’t know all the ins and outs of cryptocurrencies and want to invest in one of them or even create a new one, we recommend that you study the entire digital currency market in depth to be fully prepared to carry out said operation.