7 Tips for Successfully Launching a New Cryptocurrency

Bank notes and coins are called currency, but they also describe the buying and selling of goods and services. Before bank notes were realised, anything from rice to wool to feathers was used to barter. It wasn’t until the emergence of banks that traditional currency emerged, as a means of regulating the exchange of goods. Now, we move on to cryptocurrencies, which are simply digital coins attached to a single blockchain.

Choosing a Consensus Mechanism

A consensus mechanism dictates the way transactions are verified. Bitcoin uses proof-of-work, but there are many different methods spread across other blockchains. Here are the most common types:

• Proof-of-Authority. This unique mechanism is leveraged by private companies, which use blocks from high-quality sources. Trust is based on reputation rather than public agreement.
• Proof-of-Stake (PoS). Only the largest investors can validate blocks. This keeps costs low and rewards investors for continued support.
• Proof-of-Work (PoW). This pits crypto miners against each other, and rewards are earned for each validation. Trust is high in PoW, but it guzzles through energy – Ethereum recently moved away from PoW.

Picking a Blockchain

Your chosen consensus mechanism will influence which blockchain you use. There is no right or wrong answer here, but we recommend one of the following:

• Ethereum. Second most valuable cryptocurrency and responsible for smart contracts (used to create Dapp, NFTs, Defi, and much more).
• Waves. Proof-of-Stake network. Decentralised exchange. Coin creation is simple.
• Hydra Chain. Built over Ethereum, the Hydra Chain allows users to create their ledgers.

Designing Nodes

Nodes are the computers along your blockchain, and they’re responsible for managing the ecosystem. You need to decide how your blockchain will function, and set up nodes to complement it. For example, will you have public or private permissions? Will you be using cloud storage or on-site for hosting? What sort of hardware will you need?

Blockchain Architecture

Blockchains are unique because some elements of the system are locked in forever after launch. Therefore, you need to have a thorough understanding of how your blockchain works. For example, you may need to decide what address format will be used.

Integrating APIs

Make sure your chosen platform has built-in APIs, which allow you to use third-party services. If your platform doesn’t provide these internally, you can use Tierion, Bitcore, Gem, ChromaWay, and BlockCypher.

Legalities

Currently, there are very few restrictions on cryptocurrencies. However, experts believe regulations will arrive in 2023. Therefore, you should ensure that your coins are prepared to embrace any changes that may come up.

Marketing Efforts

There are thousands of cryptocurrencies out there, so it’s important to get your name out there. One of the best ways to do this is through social media and well-crafted press releases, which will offer vital information and statics about your new coin. We recommend following this link, which distributes press releases for crypto companies.

Building a cryptocurrency isn’t too difficult, as long as you understand how blockchain works – or have a knowledgeable contact in your network. There is a wealth of knowledge out there that you can use to build a potentially strong coin.