Over the past few years, cryptocurrencies have evolved drastically and have set foot in the spaces of almost every major business sector. Today, more than 18000 different cryptocurrencies are circulating in the market, and the number is increasing with new participants such as creators and entrepreneurs launching their projects.
Let’s begin with a glance at the concept of altcoins. Even though there are so many cryptocurrencies today, whenever you mention the term “cryptocurrency”, most common people will immediately connect with Bitcoin. But a crypto enthusiast or someone looking to launch their project in the cryptosphere will be familiar with the term “altcoin”. If you are one of them, keen about creating an altcoin, or getting to know more about them, then this blog is for you. Here, we will discuss how to make your altcoin and its key steps.
What are Altcoins?
Altcoins are an alternative to Bitcoins. “Altcoin” was coined as an abbreviation for “alternative coin”. Altcoins are also cryptocurrencies underpinned by blockchain technology that facilitates global peer-to-peer transactions. Altcoins first emerged as an idea to modify the rules of Bitcoin and to make it more appealing to users. Some of the most popular altcoins are Ripple, Litecoin, Tether, etc. In simple terms, every other cryptocurrency other than Bitcoin comes under altcoins.
How Do Altcoins work?
Altcoins work almost similar to Bitcoins, with similar features. Users can directly conduct transactions from one digital wallet to another using their private keys. Blockchain technology helps record, verify, and secure every transaction, and once recorded, transactions cannot be altered or erased. The transaction information is stored in a chain of blocks coded with strong cryptography.
Key Factors for Developing a Successful Altcoin in The Crypto World
Business Purpose
You need to have a business strategy that will interest the participants in the crypto world. Your business ideas should be simplified so that it suits blockchain technology.
Project Implementation
The business plan should be converted into an altcoin project using experienced blockchain developers. The altcoin should be simple to understand and attract market investors.
Project Benefits
The altcoin project should benefit the investor and traders in the crypto space, and you should develop a beneficial project for the investors and traders.
Types of Altcoins
Altcoins can be divided into a few different categories. Some can even be categorized under multiple headings. The categories are always changing because cryptocurrencies are generally quite new in the market.
Here are Some of The Main Categories into Which Altcoins Fit:
Stablecoins
A stablecoin is a cryptocurrency whose value is linked to a less volatile asset in the market. Stablecoins are most frequently referred to as being tied to a fiat currency, such as the US dollar. Stablecoins can also be valued in relation to other cryptocurrencies or precious metals. Whatever the stablecoins are connected to, the result is a less volatile cryptocurrency with a higher likelihood of resembling the currencies that people already use daily.
Memecoins
Memecoins, a well-liked altcoin whose value mostly stems from community buy-in, are named after social media jokes and puns. Memecoins frequently enter the crypto ecosystem in large amounts and are quickly snapped up by enthusiastic trend followers and influencers, unlike Bitcoin, whose value is more closely tied to fundamentals like scarcity and the total market cap.
Utility Tokens
Utility tokens can operate on a wide range of blockchains and ecosystems, but they require a blockchain that can support smart contracts. This is why project developers continue to utilize the Ethereum blockchain. ERC-20 tokens are the name for Ethereum-based tokens. The platform producing the utility token may provide the token holder with a wide range of uses, depending on the platform. Some could give you access to specific services or goods that the token issuer has created.
Security Tokens
A security token is a digital asset in a blockchain environment that, like traditional financial security, represents portions of a real asset with value, such as real estate or a company share. Security tokens are a mechanism to record an ownership stake in something since blockchain records are immutable.
Benefits of Altcoins
- Transactions carried out using altcoins as a payment method are cost-effective and secure as it is administered by blockchain technology.
- As mentioned earlier, Altcoins are considered a slightly modified version of Bitcoin in aspects such as improved speed, efficiency in mining, etc.
- Altcoin paves the way for new entrepreneurs by slightly tweaking the rules of Bitcoin’s operational ecosystem to create more opportunities.
These are some core advantages of altcoins. Now, let’s dive into the essential steps you need to undergo to create your altcoin in a robust, secure, and sustainable way.
Key Altcoin Development Steps:
- Define the purpose and goal of your crypto coin or altcoin
If you want to create your altcoin or crypto coin, you must set a clear purpose to make investors want to invest in your coin. You should also set a clear target goal and adhere to it. Your white paper must comprise all the factors that would make your coin appealing to your target audience.
- Legal Framework
Legalization is very important to your altcoin’s smooth execution and operation. Therefore, ensure you thoroughly analyze and adhere to every essential legal framework before commencing your altcoin creation. Consulting expert advice is a wise choice here to provide a strong foundation for your business.
- Defining Budget
Analyzing every factor and defining a clear budget are crucial to avoid sudden financial surprises. While computing your budget, you must consider the legal procedures, tools, and resources required for development, white paper documentation, altcoin audit and mining, marketing, listing, and post-launch maintenance. You must also keep in mind the future requirements of your altcoin, such as any updates, to be able to afford and resolve them quickly.
- Using an existing blockchain or creating your own
There are two different ways to develop your altcoin. Firstly, you can customize the code of an existing publicly available altcoin into your project. It is easy, and you can quickly create your altcoin. But you need to ensure the code is authentic. On the other hand, you can write code from scratch. But if you go this way, you will need to hire a team of well-experienced blockchain developers and programmers with thorough knowledge of creating error-free codes for your altcoin.
- Creating a token
People often confuse the concept of a crypto coin and a crypto token. To state the difference, crypto coins operate based on their blockchain network, such as Bitcoin, whereas a token can operate on top of an existing blockchain, such as Ethereum. You can choose to create either according to your convenience.
- Implementing standard smart contracts
To create your altcoin on an Ethereum network, you must first download an Ethereum wallet such as Mist, allowing you to develop your ERC20 tokens. Once downloaded, you must fund the wallet with Ethereum coins and deploy a new smart contract. A smart contract is the core of your altcoin project and supervises all the transactions occurring with your altcoin.
- Determining Token Supply
The next step is to decide on the number of tokens or coins you want to create. You can set the limit according to your preference, and the token value will be determined accordingly. Once done, you have to link your smart contracts with the tokens. You can also set other details like your coin/ token names, symbols, units, etc.
- Auditing
You cannot just stop with the development of your altcoin but also need to make sure your coin undergoes proper auditing to reassure its security patches are resolved, its authenticity, and its ability to operate glitch-free. You have to carefully analyze and choose the right set of auditors for this to work properly.
- Promote your altcoin
Once you are done with the development of your altcoin, it is time to focus on the promotion part of your coin. Strong marketing is the key to driving them towards investing in your coin with the intensely growing demand and competition among potential investors. Therefore, you must go through extensive research, and develop a powerful marketing strategy to achieve maximum visibility, reach, awareness, and user volume for your altcoin.
- Launch your altcoin in the crypto market
Once you have completed all the above procedures, it is time to deploy your altcoin in the market. Constant maintenance is mandatory to keep up your stability in the market. You must ensure every glitch and bug report is thoroughly verified and cleared, and you must list and deploy your altcoins on the right platform to attract potential global investors quickly.
Most Popular Altcoins in the Market
- Ethereum
- Polkadot
- Binance
- Tether
- XRP
- Solana
Why Hire us as your Altcoin Development Company?
At Infinite Block Tech, we have seasoned experts with proficiency to offer industry-best cryptocurrency and altcoin development services compellingly and cost-effectively. We ensure quick services with no compromise on quality and security. We strive to understand your individual business needs and bring your vision to life in the best way. Get in touch with our experts to develop your business in the crypto space with your ideal altcoin.