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Is It Legal To Create Your Own Cryptocurrency?

If you have been listening to the latest news, you must be aware of the rising cryptocurrency market all over the world. As always, Bitcoin is experiencing massive fluctuation in its value, and the Dogecoin, which was considered a joke years ago, has become a precious cryptocurrency nowadays.

Every day several new coins are getting introduced due to the increased demands of cryptocurrencies. Do you also wish to create a cryptocurrency of your own? Well, it is a complicated process but doesn’t worry, we will help you with it. It is indeed a great idea to get started with your new business in the field of Cryptocurrency.

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Characteristic of cryptocurrency

Before you think of moving ahead to building your Cryptocurrency, you need to keep in mind certain things. These characteristics are given as follows:

There must be a purpose related to your crypto coins

Source: medium.com

If you are building a token or a coin to enjoy the trade market, it is most likely to fail. It must have a reason related to its existence, and then only it will be able to add its value or contribution to the world.

The cause or the purpose must be fascinating to gain the attention of the investors towards it. One of the most common and best purposes of creating a crypto-coin is financial security.

The cryptocurrency was built in 2008 when people dealt with the financial crisis and wanted to control it. It helped many people manage their finances without getting dependent on the government or other banks.

Try to understand the difference between a token and a coin

Source: medium.com

Before you decide to build a cryptocurrency of your own, you need to understand the primary difference between a token and a coin. A coin such as a Dogecoin, Bitcoin, etc., has its blockchains, but on the other hand, a token is a part of the already existing blockchains only.

Another essential difference between the two is that you can use a coin anywhere, but a token can only be used under some specific area or industry. The coins have the power to buy the tokens, but the tokens can’t do the same.

One must know coding, cryptography, and blockchain:

Source: triskelelabs.com

You will require a group of experts who are specialized in this field to build your crypto coins. These coders must know about mining, blockchain databases, and security.

It would help if you chose the developers who better understand how the token or the coin works or how they function. Only a team of talented people can make your dream come true of having your Cryptocurrency.

Gain the trust or confidence of the community:

Source: news.mit.edu

It isn’t easy to build a community that can trust your coins or tokens. However, it is an essential part if you want to succeed in your business. The investors will only count your Cryptocurrency when they get to know how it can provide the benefits or help them grow. Once they start trusting your coins, you will experience growth in your business.

Methods to create your cryptocurrency

Source: readwrite.com

There are a lot of questions that run in your mind, especially if you are a beginner. These questions are mostly related to how you can build your Cryptocurrency? Or is it legal to create one?

Let us break this for you. It is legal for anyone to develop their coins or tokens and sell them. There are no regulations related to it. Scroll down below to check how can you build your crypto-coins or tokens:

Building a coin

Source: dzone.com

Building a crypto-coin is not an easy task, and it is also not free of charge. For this purpose, you need to hire a professional who has experience in this field or has excellent technical knowledge. And once you have got that person, it may take even less than 5 minutes to create your coin.

All you need to do is copy the code of an already existing coin like a bitcoin and then put some new variables in it. You can also change its value. By doing this, you are ready with your blockchain and a coin. But it isn’t that easy because you must recognize the code first, and for doing this, one must have coding skills.

Another thing that can come in creating your crypto is how to maintain and promote the coins. If you don’t have a deep understanding of coding, we recommend hiring some professionals to handle this task on your behalf. It means that you have to bear the expenses of the development services provided by them.

Building a token

Source: investmentu.com

Creating tokens is more feasible than building coins because they can be operated on top of an already existing blockchain. If you are looking for an easy and cost-effective way to own a cryptocurrency, then this is the one for you.

When you create a token on an existing strong blockchain such as Ethereum, it gets a secure and protected network space. Its creation requires very little money as well as time.

To sum up

People often get confused while investing their money in cryptocurrencies because they have no idea if it is legal or not. It is legal to create your Cryptocurrency and even sell them. However, before you do that, you need to have proper knowledge about its characteristics and creation process. After this, you can hire any professional to create your crypto coins.

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1 Comments

  1. Very nice article about is it legal to create cryptocurrency by your own. This days everyone is planning to make their own cryptocurrency. By the way can you please tell me about coinbase vs wazirx ? Which crypto exchange is the best?

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