The globalization of national economies, the penetration of the Internet into all spheres of life, the search for ways to further accelerate the global economy - all this often leads to unexpected decisions in the economic sphere. One of these is the emergence of cryptocurrencies. This financial institution, despite the sluggish (sometimes not very) resistance of many states, has become an invariable part of the world market. Now more than two hundred of such monetary systems are actively used. And this is far from the limit. So what is cryptocurrency? How can you make money with it? How to create a cryptocurrency "teapot"? We will talk about all this in an article.
general information
The idea arose relatively recently. The first cryptographic unit, Bitcoin, originated in 2009. Cryptocurrency is virtual money, where a coin is taken for one unit. In fact, coded data, used for the first time as a universal tool in financial transactions, became financial means. Only later did they become money themselves. There are a number of trading platforms that agree to sell goods for cryptocurrencies.
How to create your own cryptocurrency and is it worth it at all? To date, the world market has already accumulated a large amount of cryptocurrencies. Nevertheless, there is still enough room for new money. And if you have the skills, knowledge and a little luck and luck, you can win your place in the sun.
Why create cryptocurrency
The need to create your own cryptocurrency may arise from the owners of game servers or those who just want to make money. In the first case, you can get a settlement system between the participants of the system, in the second - try to develop cryptocurrency, and in the future receive income. In addition, the principle of the functioning of digital currencies and the process of their development may just be interesting.
Creating your own cryptocurrency for earnings for those who can’t make money on other digital currencies is not a good idea. It will be more useful to first get some practical experience, and then take on your own business. Then the probability of success is much higher.
What you need to create a cryptocurrency
How to create your own cryptocurrency from scratch? Any money, even those that appear in the virtual space, requires a lot of work, as well as:
- the presence of a computer (laptop) with Internet access;
- the ability to process a large amount of data, on this basis, learn new techniques and methods for obtaining cryptocurrency;
- the presence of a large amount of free time.
Types of Cryptocurrencies
There are several hundred virtual currencies. We will talk about how to create your own cryptocurrency a bit later. In the meantime, consider the most popular money systems.
Bitcoin This is the first digital money that appeared in 2009. They still hold leading positions. The author or a group of authors acting under a pseudonym provided users with open source code, which allowed others to develop new cryptocurrencies. The price of one coin today exceeds 4 thousand dollars, which is quite a lot. In total, about 16 million coins were issued.
Litecoin . This is an improved version of Bitcoin. The cost of the currency is slightly lower, and the issue cannot exceed 84 million. However, there are two advantages (compared to Bitcoin) - a fairly simple payment procedure and an understandable encryption technique.
Peercoin . This money system is based on the open source Bitcoin. Compared to other cryptocurrencies, Peercoin has no emission limit. But there is annual inflation, which stays within 1%.
Terms
Like any new business, especially related to the business in the field of information technology, earning on cryptocurrency involves the use of a large number of terms. They will be discussed below.
Farm
A farm is a complex of equipment connected to a blockchain network for data analysis and making cryptocurrency. As you can see, creating a cryptocurrency farm for a person who is completely unrelated to programming is very difficult.
A little more about mining farms. Any group of cryptocurrency seekers can make their own mining program. There is a way to make money through web mining. But then the efficiency will be very small.
Blockchain network
A blockchain network is a sequence of transaction blocks performed according to certain laws. Simply put, this is a distributed database.
In order for a transaction to have a reliable status, its characteristics and signatures must be examined, and after a group of transactions defined in a special structure - a block. Data in blocks needs to be quickly checked up. Any block always carries material about the previous block. All blocks can be put in one chain, which contains data on all the actions ever done in this database.
Mining
Mining - work to strengthen the distributed platform and the formation of the following blocks with the probability of earning remuneration in the form of issued currency and commission fees.
Mining is well known. After all, the one who finds the block receives a salary of 25 BTC. This is a pretty good amount these days. In addition, the value of Bitcoin is increasing. If at the end of 2016 1 BTC was estimated at $ 750, then in August 2017 it is more than 4 thousand dollars.
In addition, new cryptocurrencies are being created. They can also be mined. Although it is not so profitable.
Mining is booming. However, to date, it is becoming increasingly difficult to mine bitcoins. Often, miners are combined into certain teams (pools).
This is just a small piece of information. In fact, there are a lot of terms - hundreds, or even thousands.
Exchanges
How to create a cryptocurrency exchange? Why are these organizations needed? Cryptocurrencies as such are different from real money. They are not tied to monetary systems. Their volume is strictly limited, because of this they are not in danger of inflation. On the other hand, any person can organize and put into circulation their own currency.
There are special financial organizations for the exchange of cryptocurrencies. It's about exchanges. Cryptocurrency makes it possible to perform instant operations without intermediaries. Coins in the system are cryptographic hash codes that are unique and cannot be used twice. They have their own course, which can be controlled on special sites.
What is a wallet for?
How to create your own cryptocurrency and make money on it? The answer to this question is of interest to many Internet users. To begin with, remember: it is impossible to use cryptocurrency without a special wallet. At its core, a cryptocurrency wallet is a program where personal keys are located. It is she who works on the Internet, interacting with virtual currencies. That is, cryptocurrency can not be touched, put in a wallet or on a shelf. These are just blockchain transaction records.
When your friend sends you virtual money, the "ownership" of them is transferred to the address of your wallet. How to create a cryptocurrency wallet? It is easy enough. In order to earn money with these coins and gain access to money, you will need a private key. It is in your wallet and must meet the public key to which the coins are attached.
If the two keys match, the contents of your wallet are multiplied, and the sender’s wallet, on the contrary, is reduced. In this case, the transfer of real coins does not occur. But a block about the transaction appears on the blockchain. This is practically all that is done during the transfer of cryptocurrencies.
Wallet Types
If you are thinking about how to create a cryptocurrency wallet , you need to understand their typology. There are three categories of wallets that differ in the methods of storage and access to cryptocurrencies - software, hardware and paper. Software wallets are divided into 3 categories: for computer, for mobile devices and online wallets. There are a number of options and bases for storing digital media, the best of which are:
- The most popular resource is blockchain.info. The wallet has a clear interface, low commission and there are no restrictions on the amount of transfer. Suitable for storing bitcoins and conducting transactions. If you are thinking about how to create your own cryptocurrency, you can start by registering on this site.
- Resource exmo.me. This resource also serves as a cryptocurrency exchange. It can store several virtual currencies with a small commission.
- Another famous wallet is cryptsy.com. About 200 cryptocurrencies can be stored in it. Due to winning exchange rates, you can get income on mining. You can hold a wallet to collect bitcoins on "taps".
Own cryptocurrency
The instruction "How to create a cryptocurrency", of course, exists. But if a person does not have programming skills, then there is little chance of success. Therefore, we offer a simpler and more understandable algorithm of actions:
- On github.com, you need to find the most appropriate code that will become the basis for the formation of a cryptocurrency network.
- The organization of virtual money involves the use of applications to change the operation of software. It all depends on the main code and operating system.
- Then you need to adjust the original code. You will need programming skills. In addition, be sure to consider the name for your cryptocurrency. In the process of forming the program, the old names in the proposed new name are modified. There are special programs that carry out the necessary changes in a short time.
- Next, there is a search for four unoccupied network ports. Appropriate adjustments are made to the selected code.
- At the end of the operation, it remains to initiate the process of moving the new currency in blocks.
How to create your own cryptocurrency? Everything is quite simple, if you look into it.
Of course, it is better to additionally study specialized literature, chat with people on the forums.
Exchanger
We talked about how to create a cryptocurrency. The instruction was given above. Now you need to study another important point - work with the exchanger. If you decide to develop a business in the financial sector, the creation of an exchanger will be quite logical. But do not forget that you need to act honestly and clearly. Otherwise, the loss of reputation will reduce the scale of the business to zero. And yet, how to create a cryptocurrency exchanger? The algorithm of actions is as follows:
- To start working with money transfers, you need to draw up a loan agreement without deadlines. If you are not a specialist in the legal field, it is better to contact a lawyer.
- Another option is to open the exchanger by registering it in the form of IP. Then you will work as an entrepreneur.
- You can use existing exchangers, for example, WebMoney.
Reviews show that there are no big problems with the design and operation of cryptocurrencies. The main thing - do not confuse yourself, do not complicate life. Then everything will go like clockwork.