In money’s earliest days, gold or silver was often used to make coins. These coins were different from our modern-day bills, as gold and silver have intrinsic value. However, there was only one reason why these coins functioned as money: the people using them valued gold and silver and agreed they could be used to buy things. From paper currency, we have seen the dawn of digital currency, which started with online banking, that is to say, Technology-based exchange, which created a pathway to the creation of (which was the natural evolution of) cryptocurrencies.
After Satoshi Nakamoto successfully launched Bitcoin in 2009, cryptocurrencies have reimagined the concept of money. Bitcoin was created and started to function as money because people trusted it and believed that it has value – just like normal money. People started using and accepting Bitcoins as a unit of exchange, thus giving rise to many other digital currencies which followed in the footsteps of Bitcoin. This sudden outburst of digital currencies led to the issue of thousands of digital currencies being created without any utilization of the same.
The alternate coin- “ALTCOINS.” It works similar to Bitcoin, so let’s take a deeper look at this blog and get thorough knowledge about its development.
What are ALTCOINS?
Altcoins are alternative cryptocurrencies to Bitcoin; that’s why they are termed Altcoins. Altcoins can also be issued by centralized authorities. They are 2.0 versions of Bitcoins, offering all the services and solutions like Bitcoins-fastest, cheapest, easiest, and a universal way to exchange value. The core characteristics of Bitcoin are shared by Altcoins, yet they are different in one way or another.
Why should you invest in Altcoins?
- A new cryptocurrency brings a robust solution to the existing problem of the market. This is considered to be one of the most powerful factors that influence crypto enthusiasts to invest.
- The price of Bitcoin rose from $0 to $4700, which made people believe that cryptocurrencies are here to stay and offer them huge benefits.
- And, last but not least, an important thing about cryptocurrencies is that new cryptocurrencies can be mined easily as compared to the older/established/popular ones.
- If you HODL a new cryptocurrency for a longer period of time, you may get a huge profit, and this has happened before, which motivates people to invest in Altcoin all the time.
Advantages offered by Altcoins
- Easy exchange: Altcoins can be easily exchanged through the geographical boundaries of the globe without any legal restrictions.
- Restraining Inflation: Altcoins are not regulated by any centralized entity. Therefore, unlike fiat currencies, they do not get affected by Inflation at a higher rate.
- Offers ownership of assets: Cryptocurrencies are not regulated by centralized governmental bodies. Therefore, the person holding the crypto has complete ownership of it.
Factors to consider before investing in Altcoins
- The purpose served by the cryptocurrency
Every cryptocurrency serves a different purpose. If you want a utility token, you need to invest in one, not in a cryptocurrency that is basically built for exchange at trading platforms. Some will be exchanged and accepted, similar to Bitcoins, while others will not. So, the purpose served by cryptocurrency is an important factor to look for.
Every cryptocurrency is developed to solve a specific problem in the crypto market. Find the solution that will solve the existing problem of the market. The practical use-case that can be implemented in our daily life.
The team behind the crypto project is an important factor. You will have to do a little research about the team and its past contributions in different fields.
- Risk factor
Every investment is filled with risk. Be it stock market or crypto market. You just have to get a clear idea about the growth of that particular Altcoin and then make your investment.
- Targeted market capitalization and daily trading volume
Market capitalization is the total amount of cryptocurrency in circulation in the market. So, get track of the daily trading volume of cryptocurrencies before investing in them.
How to develop an Altcoin?
- Select the approach to developing your future currency
This approach consists of various steps-
- Select an existing blockchain network- If you are a developer and have skilled knowledge of the technology, you can clearly do it. You can convert the codebase of already launched cryptocurrency available on Github.
- Build your own blockchain network- Rather than going for a ready-made solution, you can go for building a blockchain network from scratch. So, it is advisable to entrust this work to an experienced Altcoin Creation company.
- Use a platform- When you use an already launched platform in the market, then people have ideas about your coin. You can get help from the tech support team of the platform.
- Creation of token- Now, the final work is to create a token. When a token is created on an existing blockchain network, it operates on the top of the blockchain network, for example, Ethereum.
- Selection of Smart Contract
Usually, ERC-20 or BEP-20 tokens will be selected for the token standard. For token storage services, you can leverage the Metamask wallet.
- Create an MVP of the token
Creating an MVP of the token will help you locate your target audience and develop a token that can be widely accepted in the market.
- Search for investors/ investment
The Crypto public needs to be aware of the newly launched cryptocurrency in the market. And, to develop further, you need investment. Initial Coin Offerings (ICO) is considered to be one of the best marketing strategies to attract investors and target crypto buyers.
At any time of the day the question of “how to develop your own cryptocurrency?” crosses your head, your need to read this blog. It will offer you the guidance that you need to get a cryptocurrency creation service.