There are about two thousand altcoins today, but even the most curious traders do not know about most of them. At the same CoinMarketCap only data on one hundred cryptocurrencies are presented. Why are there so many coins, and only a few are known? What features does the launch of cryptocurrency have and under what conditions does the new coin have a chance to break into the TOP? We will discuss in this article!
It would seem, what is bad to make a profit from their labor? Of course, nothing. However,, according to experts, the majority of new cryptocurrencies are based on open source Bitcoin and differ little from each other. These are faceless coins that can not compete with high-tech cryptocurrencies.
All the top cryptocurrencies are technological. Even those that were created as a fork, are significantly different from the original. For example, the Ripple cryptocurrency, created on the basis of the Ethereum source code, has much more bandwidth.
Cryptocurrency Litecoin, which appeared as a result of the Bitcoin fork, processes transactions many times faster than the main chain. Litecoin also uses the original mining algorithm, which makes it easy to mine coins on the processor’s power. By the way, lightcoin is considered the only successful altcoin from among those that repeat the source code of Bitcoin with great accuracy.
That is, you can create a top cryptocurrency, but for this you will need to find the right niche in the market and give users what they lack in other altcoins.
For example, Monero cryptocurrency became popular due to heightened anonymity, NEO – thanks to improved smart contract technology, OmiseGO – due to the promise to solve the blockchain scalability problem.
In addition, the developer must take into account the moment of competition and follow the general trends in the market. Cryptocurrency of the same type, issued with a small interval of time, as a rule, inhibit each other.
The basis of any cryptocurrency is the program code, in which the technical characteristics of the coin and the parameters of the network are specified. You need to register this code to create a cryptocurrency. Here the developers have two options.
Of course, a good programmer fits both of these methods (the second generally suits him exclusively). However, what about a novice who is far from programming and blockchain?
Creating a cryptocurrency on learning guides or videos on YouTube is a good option for self-study. However, not the basis for creating a successful altcoin, which can gain a foothold in the market.
However, even if an experienced specialist is engaged in creating a cryptocurrency, no one has canceled the market factor, which we talked about earlier. Suppose a programmer spelled out the code correctly, and in technical terms you won’t reproach his coin. However, what is the use of it, if a complex mining algorithm, unlimited emission or another unpopular parameter among users are built into cryptocurrency?
Technical literacy and economic forethought are two mandatory components of a cryptocurrency, which has chances of success. If we talk about a long-running project with a serious base, both of them are extremely difficult to implement and both require a lot of investment.
Suppose a developer has source code (edited or written from scratch). However, this is not yet ready cryptocurrency. It needs tokens that would serve as a system “fuel”, a carrier of value, or a tool for calculations to launch a project and enter the market. So you have to work on them.
In the first case, the developer takes the program code of the tokens ERC20 and creates his own token. It does not take much time and is done on specialized web sites. The average cost is 1 2ETH.
Coin constructors are online services that generate tokens based on specified characteristics. It is possible to register basic permissions, hashing and mining algorithms, parameters of minimizing and so on.
Standard token will cost 0.5 1BTC. For the creation of a pool for mining and channels of the distribution of coins will have to be paid another 2 3BTC. This is provided that the developer creates a unique token, and does not copy the already created cryptocurrency. Copies are cheaper, but there’s no special point.
The price for the creation of turnkey cryptocurrency (when the developer enters into a contract with a specialized company) starts from $ 1,000. This is the simplest cryptocurrency – without a cryptograph, without a mining pool, without a chanel, and so on. For a complete set will have to pay from 4000 to 6000 dollars.
The availability of proposals for the creation of turnkey cryptocurrency and online coin designers significantly simplified the life of developers. Now anyone can create a cryptocurrency without having special knowledge in programming. Of course, if you are willing to pay for it to other people.
You can go another way – assemble a team and work together to create a cryptocurrency. This is exactly what most developers do with serious intentions to break into the market. Create a company, recruit staff and spend a lot of money.
Experienced experts in the field of cryptocurrency development charge several hundred dollars an hour for their services, and work on a project often takes up to months.
The creation of an alpha version of cryptocurrency takes 2–3 months at best, and a full release – 5 months or more. You have to pay for the services of hired specialists all this time. You also need to buy powerful equipment that will consume a huge amount of electricity, for which you will also have to pay.
By the way, this is the main reason why developers collect money through ICO. Creating a good cryptocurrency is a very costly business that without financial support, it simply can not get off the ground.
The next budget item is a marketing campaign. The price of cryptocurrency depends on its relevance in the market, and therefore on demand. At first, demand is created by purchased advertising. If nobody knows about the coin, it will pass unnoticed and will not bring developers either money or recognition. At a high-quality advertising takes at least 2-3 thousand dollars.
Without the appearance of cryptocurrencies on popular exchanges, one can not count on a special success. It is on them that trade boils and market trends are formed. For adding to the listing of top sites also need to pay
Obviously, launching your own cryptocurrency is long, expensive and risky. If you want to create a one-day project for quick money, most likely you will go into a minus. If you are eager to figure out how the cryptocurrency platforms work from the inside, you will receive an invaluable experience.
If you hope that your cryptocurrency will ever enter the world TOP, you will have to invest a lot of time, effort and money in it. Remember that besides you, hundreds more work on the creation of new cryptocurrencies. Gather a large audience (and hence greater profits) will be able to those who offer a more popular solution on more attractive terms.
Many experts believe that in the long run only tech cryptocurrency will survive in the market. That is, those who solve actual problems of the blockchain or the coin source.
The chances of success are projects aimed at reducing transaction processing time, increasing network bandwidth, increasing anonymity, smoothly changing the complexity of mining, and so on. Cryptocurrency copies, according to experts, will sooner or later disappear from the market. If at all able to light up on it.